Evolution of Offshore Software Outsourcing in East Asian Countries: From Cost to Relation

This paper aims to show the evolution of offshore outsourcing from a different viewpoint. In particular, it will be focusing on the offshore outsourcing in East Asian countries, especially in China, Vietnam and Japan. In spite of relatively short period of offshoring experiences, East Asian countries, however, are undergoing the shift in formulating and implementing offshore software outsourcing strategies. Most researches concerning offshoring are based on ‘cost proposition’, focusing on cost as a driving force of the offshoring. Offshoring strategy being dubbed as ‘relation proposition’ appears in East Asian countries. Rather than pursuing short-term profits from cheap labor cost, some East Asian countries’ offshoring look for long-term and strategic relationship through continuing development and cooperation among them.