Our study examines the evolution of offshoring of information technology services between a multinational telecommunications firm and Indian vendors. The firm’s strategy sought to access critical resources of talented software professionals at low cost and to facilitate growth in a highly competitive telecommunications sector. Legitimacy management proved critical in explaining the evolution of...

The changing economic and labor conditions have motivated firms to outsource professional services activities to skilled personnel in less expensive labor markets. This offshoring phenomenon is studied from a political, economic, technological and strategic perspective. Next, an analytical model is developed for achieving strategic advantage from offshoring based on global partnerships. The mod...

This paper empirically studies the determinants of firms’ decision to offshore product development activities (i.e. R&D, product design and engineering services). A logit model is estimated using survey data from the Offshoring Research Network on offshore implementations initiated by US firms between 1990 and 2006. It relates the probability of offshoring product development to differences in ...

In the following pages you will find a detailed analysis of the latest trends in offshoring extracted from the study conducted by the Offshoring Research Network (ORN). This international project, spearheaded by Duke University, brings together universities and companies from all over the world to analyze the offshoring practices in different countries, as well as the financial, political, and ...

103 It is a pleasure to read and discuss Gene Grossman and Esteban Rossi-Hansberg’s paper. They begin by assembling several data series to show the growing importance of “task trade,” or offshoring, for the U. S. economy. Unfortunately, few data sets exist on offshoring, so, while highly suggestive, all the evidence is indirect. Hence, the first policy implication that I draw from this paper is...

While work organization and social capital are known to be important factors for offshoring success, there is little empirical evidence on how these aspects evolve in the course of offshoring projects. In the literature, trust has been discussed as a personal disposition to abstain from control in a given situation, and was found to remain surprisingly stable in some cases. By analyzing the rel...

Based on Relational Exchange Theory (RET), this paper explores the dual role in offshore sourcing as experienced by an Irish software development company. As part of a large US based company, the Irish site acts as a “bridge” in their offshoring practices. While the US site offshores work to Ireland, the Irish site – acting as the bridge – offshores work further to India. Hence, the Irish site ...

Within the realm of globalization of R&D, offshoring is a relatively recent and still emerging phenomenon. Rooted in the notion of comparative advantage, offshoring of R&D involves disaggregation and global distribution of the firm’s R&D value chain activities to leverage innovation capacity of low-cost countries. Characteristically different from marketand technology-seeking globalization of R...

This paper empirically examines the current state of the IS offshoring phenomenon in Germany regarding project characteristics and success patterns. Relying on a sample of 304 projects conducted at various industry sectors and companies, results show that IS offshoring primarily occurs in sectors Telecommunications and IT at large corporations. Cost reduction is the main reason for going offsho...

" Offshoring will grow faster and gain more traction in 2004 " " Offshoring will spread to other BPO processes. " " Order to cash, customer relationship management, and commercial real estate may become prominent outsourced processes using a transaction engine this year. " [9]