Offshoring, Wages and Job Security of Temporary Workers We investigate the impact of offshoring on individual level wages and unemployment probabilities and pay particular attention to the question of whether workers on temporary contracts are affected differently than workers on permanent contracts. Data are taken from the German Socio-Economic Panel (SOEP), linked with industry-level data on ...

This article discusses the importance of firm-level cultural intelligence in the context of international business ventures such as offshoring. We identify the recent movement toward global delivery models in offshoring ventures as the strategic imperative for offshoring partners to acquire and develop firm-level cultural intelligence. Drawing on Earley and Ang’s (2003) conceptualization of cul...

Previous research has recognized that weak institutions can hamper investments and alter patterns of trade. However, little is known about the impact of institutional quality on offshoring. This is surprising, given that offshoring has become an important part of many firms’ internationalization strategy. This study uses detailed Swedish firm-level data on production and trade in combination wi...

GÁL Z. Future Bangalores? The increasing role of Central and Eastern Europe (CEE) in offshoring services, Regional Studies. The paper gives an overview of offshoring services into Central and Eastern Europe. Many Eastern European countries invigorated by EU enlargement became important locations for offshore service centres. Building on the region‘s nearshoring advantages such as geographical-c...

Offshoring and Unemployment In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to offshor...

Common process models for the development of application software (AS) are examined as to how well they are suited for offshoring projects. The need for communication and interaction among onsite and offshore project stakeholders is identified as a critical success factor. Process models used by organizations providing offshoring services are discussed, and a generalized offshoring life cycle m...

Executive Overview The seemingly unlimited availability of science and engineering (S&E) talent in emerging economies and the increasing difficulties of finding such talent in advanced economies have given rise to a new trend: the global sourcing of S&E talent. This paper examines the antecedents and dynamics of this trend. In particular, it examines the coevolution of macroeconomic forces, dom...

This paper studies offshoring (defined as a change in firms’ own production location from north to south) and market structure. I develop a model of dynamic oligopoly with offshoring, and estimate it using data from the hard disk industry. The results suggest the incentive to offshore increases as more rivals offshore due to competitive pressure. The possibility of offshoring sets in motion the...

While most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates the effects on the industries’ skill ratio. It summarizes the empirical literature, discusses theoretical findings, and provides empirical evidence for Germany. As results show, effects are mainly driven by the industry where offsho...

This article discusses the recent development of offshoring in the software industry in Japan. Following interviews with several Japanese ICT companies, we reveal the present status and problems of offshoring software development, which cannot be recognized from its macro data. Japanese firms must expand offshoring because of increasing competition within Japan, although offshoring creates an o...