Embracing Realism and Recognizing Choice in Offshoring Initiatives

Joseph Lampel, Ajay Bhalla

Research output: Contribution to journalArticlepeer-review

Abstract

As more and more firms move activities offshore to countries that are distantly located from their home base of operations, the initial advantages of making this move are increasingly tempered by 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 of what we now know. Broadly speaking, successful offshoring must begin with an understanding of the market and competitive pressures that encourage offshoring, and then build on recognition of how these pressures can be addressed using or modifying the offshoring options currently practiced. 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.
Original languageEnglish
Pages (from-to)429-440
Number of pages11
JournalBusiness Horizons
Volume51
Issue number5
Publication statusPublished - 2008

Keywords

  • Offshoring; IT outsourcing; Offshoring strategy; Global operations

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