Embracing Realism and Recognizing Choice in IT Offshoring Initiatives
City University London - Sir John Cass Business School
City University London - Sir John Cass Business School; Indian School of Business
October 1, 2008
Business Horizons, Vol. 51, No. 2, 2008
As more and more firms offshore activities to countries that are distantly located from their base of operations, the initial advantages of making this move are increasingly tempered by the realities on the ground. For firms contemplating offshoring today it is important to weigh the advantages and disadvantages of undertaking or extending this strategy in light what we know now. Broadly speaking, successful offshoring must begin with an understanding of the market and competitive pressures that encourage offshoring, and then build on recognition on how these pressures can be addressed using or modifying offshoring options that are practiced currently. Our discussion of these issues is based on analysis of offshoring of IT enabled services by Fortune Global 500 firms in such areas as software development and business processes that support customer interaction.
Number of Pages in PDF File: 39
Keywords: IT outsourcing, Offshoring strategy, global operations
JEL Classification: L22, L1, M10Accepted Paper Series
Date posted: January 17, 2009
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