Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Review of Offshore Outsourcing


     

   Subscribe/Renew Journal


The aim of this paper is to review the earlier studies on offshore outsourcing. Based on the review, the paper put forward the importance of widening the range of earlier studies. Studies are required from service receiver's point of view incorporating their benefits and risks, which are often ignored. The paper also highlighted the scope for further research as offshore outsourcing of services is not limited to a few operational areas. There is a need for empirical studies based on qualitative as well as quantitative measures for a better understanding on the issues related to offshore outsourcing business because of the continuous demand of these services in current global competitive environment. The paper provides synthesis of viewpoints on various dimensions such as reasons behind offshore outsourcing, theoretical justification, and future expectations from the service provider firms

Keywords

Outsourcing, Offshoring, Profitability, BPO, and KPO
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adams, R. J. (2002). Retail profitability and sweatshops: A global dilemma, Journal of Retailing and Consumer Services, 9(3), 147–153.
  • Amoribieta, I., & Bhaumik, K. (2001). Programmers abroad: A primer on offshore software development, McKinsey Quarterly, 2, 128-139.
  • Antonietta, C. (1987). Marginal economics, the new Palgrave: A dictionary of economics, 3, 323.
  • Aron, R., Clemons, E. R., & Reddi, S. (2005). Just right outsourcing: Understanding and managing risk, Journal of Management Information Systems, 22(2), 37-55.
  • Apte, U. M, Sobal, M. G., Hanaoka, S., Shimada, T., Saarinen, T., Salmela, T., & Versalainen, A. P. J. (1997). IS outsourcing practices in the USA, Japan, and Finland: A comparative study, Journal of Information Technology, 12, 4.
  • Bandyopadhyay, S., & Pathak, P. (2007). Knowledge sharing and cooperation in outsourcing projects: A game theoretic analysis, Decision Support Systems, 43, 349-358.
  • Barge-Gil, A., & Modrego, A. (2009). The impact of research and technology organizations on firm competitiveness: Measurement and determinants, Journal of Technical Transformation, 36(1), 61-83. doi: 10.1007/s10961-009-9132-4
  • Barrar, P., Wood, D., Jones, J., & Vedovato, M. (2002). The efficiency of accounting service provision, Business Process Management Journal, 8(3), 195-217.
  • Bartell, S. M. (1998). Information systems outsourcing: A literature review and agenda for future research, International Journal of Organizational Theory and Behavior, 1(1), 17-44.
  • Barthélemy, J. (2001). The hidden costs of IT outsourcing, Sloan Management Review, 42 (3), 60-69.
  • Bhagwati, J., Panagariya, & Srinivasan, T. N. (2004). The muddles over outsourcing, Journal of Economics, 18(4), 93-114.
  • Boheren, O. (1998). The agent’s ethics in the principal agent model, Journal of Business Ethics, 17(1), 31-39.
  • Bolumole, Y. A. (2001). The supply chain role of third-party logistics providers, International Journal of Logistics Management, 12(2), 87-102.
  • Bouquet, C., Morrison, A., & Birkinshaw, J. (2009). International attention and multinational enterprise performance, Journal of International Business Studies, 40, 108-131.
  • BPO India (2008). News. Retrieved September 12, 2007, from http:// www.bpoindia.org
  • Budhwar, P. S. Luthar, H. K., & Bhatnagar, J. (2006). The dynamics of HRM systems in Indian BPO firms, Journal of Labor Research, 27(3), 339– 360.
  • Chaudhry, A. N., Nam, K., & Rao, H. R. (1995). Management of information systems outsourcing: A bidding perspective, Journal of Management Information Systems, 12(2), 131-159.
  • Chen, Y. C., & Perry, J. (2003). Outsourcing for e-government managing for success, Public Performance & Management Review, 26(4), June, 404- 421
  • Claver, E., Gonzales, R., Gasco, J., & Llopis, J. (2002). Information systems outsourcing: Reasons, reservations and success factors, Logistics Information Management, 15(4), 294-308.
  • Coase, R. (1937). The nature of the firm, Retrieved March 10, 2008 from http://www.cerna.ensmp.fr/Enseignement/CoursEcoIndus/SupportsdeC ours/COASE.pdf
  • Coffee, D., & Tomlinson, P. R. (2004). Multiple facilities, strategic splitting and vertical organization, L’Institute, Discussion Paper 24, Universities of Birmingham, Ferrara, and Wisconsis-Milwaukee. Retrieved www.springerlink.com/index/3617l65101528360.pdf
  • Contractor, F. J., & Mudambi, S. M. (2008). The influence of human capital investment on the exports of services and goods: An analysis of the top 25 services outsourcing countries, Management International Review, 48, 4.
  • Corbett, M. F. (1996). Outsourcing as a strategic tool, Canadian Business Review, 23(2), 14-16.
  • Currie, W. (1998). Using multiple suppliers to mitigate the risks of IT outsourcing in two UK companies: ICI and Wessex water, Journal of Information Technology, 13, 169-180.
  • Currie, W. L., Michell, V., & Abanishe, O. (2008). Knowledge process outsourcing in financial services: The vendor perspective, European Management Journal, 26(2), 94-104.
  • D’Aveni, R., & David, J. R. (1994). Economics of integration versus bureaucracy costs: Does vertical integration improve performance, Academy of Management Journal, 37(October), 1167– 1206.
  • DiRomualdo A., & Gurbaxani, V. (1998). Strategic intent for IT outsourcing, Sloan Management Review, 39(4), 67-81.
  • Enlow, S., & Ertel, D. (2006). Achieving outsourcing success: effective relationship management, Benefits Review, 38, 50.
  • Evalueserve (2007). Knowledge process outsourcing (KPO): Origin, current State and future direction. Retrieved February 7, 2008 from http:// www.evalueserve.com/Media-And-www.ibef.org/download/India' s_(KPO)_Sector_6May_08.pdf
  • Finlay, P. N., & King, R. M. (1999). IT outsourcing: A research framework, International Journal of Technology Management, 17, 109–28.
  • Fritch, M., & Wüllenweber, K. (2007). Firm level determinants of business process outsourcing decisions, Management Association International Conference, IRMA, Vancouver, Canada, Retrieved from http://www.wiiw.de/publikationen/TheImpactofBusinessProcessOuts23 75.pdf
  • Ghodeswar, B., & Vaidyanathan, J. (2008). Business process outsourcing: An approach to gain access to world-class capabilities, Business Process Management Journal, 14(1), 23-38.
  • Gibson, V. M. (1996). Outsourcing can save money and increase efficiency, Benefits Administration (March), p. 19.
  • Gilley, K. M., & Rasheed, A. (2000). Making more by doing less: An analysis of outsourcing and its effects on firm performance, Journal of Management, 26(4), 763-90.
  • Gilley, K. M., Greer, C. R., & Rasheed, A. A. (2004), Human resource outsourcing and organizational performance in manufacturing firms, Journal of Business Research, 57(3), 232-240.
  • Goles, T. (2001). The impact of the client/vendor relationship on outsourcing success, Faculty of Bauer College of Business, Department of Decision and Information Sciences, Houston: University of Houston. Retrieved http://www.csrc.lse.ac.uk/asp/aspecis/20060141.pdf
  • Gonzalez, R., Gasco, J., & Llopis, J. (2005). Information systems outsourcing: Reasons in the largest Spanish firms, International Journal of Information Management, 25(2), 117-36.
  • Gottfredson, R., Puryear, R., & Phillips, S. (2005). Strategic sourcing from periphery to the core, Harvard Business Review, 83(2), 132-139.
  • Han, S. H., Lee, J. N., & Seo, Y. W. (2008). Analyzing the impact of a firm’s capability on outsourcing success: A process perspective, Information & Management, 45, 31-42.
  • Hätönen, J., & Eriksson, T. (2009), 30+ years of research and practice of outsourcing – exploring the past and anticipating the future, Journal of International Management, 15, 142–155.
  • Hayes, D.C., Hunton, J. E., & Reck, J. L. (2000). Information systems outsourcing announcements: Investigating the impact on the market value of contract-granting firms, Journal of Information Systems, 14(2), 109-25.
  • Herath, T., & Rajiv, K. (2009). Offshore outsourcing: risks, challenges, and potential solutions, Information Systems Management, 26(4), 312-326. doi: 10.1080/10580530903245549
  • Jain, N. K., Kundu, S. K., & Niederman (2008). Offshoring propensity in information technology services: A firm and country level analysis, Management International Review, 48(4), 47.
  • Jennings, D. (2002). Strategic sourcing: benefits, problems and a contextual model, Management Decision, 40(1), 26-34.
  • Kakabadse, A., & Kakabadse, N. (2005). Outsourcing: current and future trends, Thunderbird International Business Review, 47(2), 183-204.
  • Kedia, B. L., & Lahiri., S. (2007). International outsourcing of services: a partnership model, Journal of International Management, 1(1), 22-37.
  • Khan, S. U., Niazi, M., & Rashid A. (2011). Factors influencing clients in the selection of offshore software outsourcing vendors: An exploratory study using a systematic literature review, The Journal of Systems and Software, 84, 686-699.
  • Kim, D. R., Cheon, M. J., Beugré, C. D., & Coverdale, T. K. (2003). Information system outsourcing: Exploration of the impact of outsourcing services providers, Service, Retrieved from
  • www.uvi.edu/sites/uvi/Pages/Business-faculty_Scholarship.aspx Klein, D. A., & Prusak, L. (1994). Characterizing intellectual capital, Multiclient program working Paper, Center for Business Innovation (March), Ernst & Young.
  • Kolk, A., & Van Tulder, R. (2002). The effectiveness of self-regulation: Corporate codes of conduct and child labour, European Management Journal, 20(3), 260-271.
  • Koutsoyiannis, A. (1982). Microeconomics, U.K., Macmillan.
  • Kumar, K., & Willcocks, L. (1996). Offshore outsourcing: a country too far”, Proceeding of the fourth European conference in Information Systems (June), Lisbon. Retrieved
  • http://www.personal.lse.ac.uk/willcock/.../Refereed%20Conf%20Procee d%2092-07.htm
  • Lahiri, S., & Kedia, B. (2011). Coevolution of institutional and organizational factors in explaining offshore outsourcing, International Business Review (Article in press). doi:10.1016/j.ibusrev.2011.01.005
  • Lankford, W. M., & Parsa, F. (1999). Outsourcing: a primer, Management Decision, 37(4), 310-316.
  • Lau, K. H., & Zhang, J. (2006). Drivers and obstacles of outsourcing practices in China, International Journal of Physical Distribution & Logistics Management, 36(10), 776-792.
  • Lee, C. P., Lee, G.-G., & Lin, H.-F. (2007). The role of organizational capabilities in successful e-business implementation, Business Process Management Journal, 13(5), 677-693.
  • Levina N., & Ross, J. W. (2003). From the vendor’s perspective: exploring the value proposition in information technology outsourcing, MIS Quarterly, 27, 3.
  • Lewin, A. Y., Massini, S., & Peeters, C. (2008). Why are companies offshoring innovation? The emerging global race for talent, Journal of International Business, 40, 901-925.
  • Loh, L., & Venkatraman, N. (1992). Diffusion of information technology outsourcing: Influence sources and the Kodak effect, Information Systems Research, 3(4) (December), 334-378.
  • Lynch, C. F. (2004). Why outsource, Supply Chain Management Review, 8(7), 44-49.
  • McGovern, G., & Quelch, J. (2005). Outsourcing marketing, Harvard Business Review, 83(22 and 26) (2), 132-139.
  • Mclvor, R. (2003). Outsourcing: Insights from the telecommunications industry, Supply Chain Management, 8(4), 380-394.
  • Mouhalis, J. (2007). The details behind a successful offshore BPO programme, Zacking Publications.
  • Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective, New York: Harper and Row.
  • Pyndt, J., & Pedersen, T., (2006). Managing global offshoring strategies: A case approach. Copenhagen Business School Press, Copenhagen.
  • Quinn, J. B., & Hilmer, F. G. (1994). Strategic outsourcing, Sloan Management Review, 35(4), 43-55.
  • Rai, A., Maruping, L. M., & Venkatesh, V. (2009). Offshore information systems project success: The role of social embeddedness and cultural characteristics, MIS Quarterly, 33(3) (September), 617-641.
  • Rajkumar, T. M., & Dawley, D. L. (1997). Problems and issues in offshore development of software, Strategic Sourcing of Information Systems: Perspectives and practices, Wiley series in Information systems, pp. 369-386.
  • Ravichandran, R., & Ahmed, N. (1993). Offshore systems development, Information and Management, 24, 24-40.
  • Razzaque, M. A., & Sheng, C. C. (1998). Outsourcing of logistics functions: A literature survey, International Journal of Physical Distribution & Logistics Management, 28(2), 89-107.
  • Rumelt, R. P. (1991). How much does industry matter?, Strategic Management Journal, 12, 167-185.
  • Sabatelli, & Shahan (1993). Social exchange theory-core assumptions made within the exchange framework, Retrieved from http://www.family.jrank.org/pages/1594/Social-Exchange-Theory- Core-Assumptions-Made-Within-Exchange- Framework.html#ixzz0knjM431P
  • Sen, F., & Shiel, M. (2006). From business process outsourcing (BPO) to knowledge process outsourcing (KPO): some issues, Human Systems Management, 2, 145–155.
  • Sobol, M. G, & Apte, U. M. (1995). Domestic and global outsourcing practices of American’s most effective IS users, Journal of Information technology, 10, 269-280.
  • Sullivan, P. H. (1999). Profiting from intellectual capital, Journal of Knowledge Management, 3(2), 132-142.
  • Tsang, E.W.K. (2000). Transaction cost and resource-based explanations of joint ventures: A comparison and synthesis, Organizational Studies, 21, 215- 242.
  • Tomer, J. F. (1987). Productivity through intra-firm cooperation: a behavioral economic analysis, Journal of Behavioral Economics (spring), 83-95.
  • Tong, T. W., & Reur, J. J. (2007). Real options in multinational corporations: Organizational challenges and risk implications, Journal of International Business Studies, 38, 215–230.
  • Weerakkody, V., & Irani, Z. (2010). A value and risk analysis of offshore outsourcing business models: An exploratory study, International Journal of Production Research, 48(2), 613–634.
  • Willcocks, L., & Kern, T. (1998). IT outsourcing as strategic partnership: The case of the UK Inland revenue, European Journal of Information Systems, 7(1), 29-45.
  • Willcocks, L., & Hindle, J. (2004). IT and business process outsourcing: The knowledge potential, Information Systems Management, (summer), 7- 15.
  • Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications, New York, Free Press.
  • Williamson, O. E. (1981). The economics of organization: The transaction cost approach, American Journal of Psychology, 87, 548–577.
  • Windrum, P., Reinstaller, A., & Bull, C. (2009). The outsourcing productivity paradox: Total outsourcing, organizational innovation, and long run productivity growth, Journal of Evolutionary Economics, 19, 197-229.
  • Winkler, J. K., & Dibbern, J. H. (2008). The impact of cultural differences in offshore outsourcing–case study results from German–Indian application development projects, Information System Outsourcing, 10(2), 471-491. doi: 10.1007/s10796-008-9068-5
  • Zhan, W., & Luo, Y, (2008). Performance implications of capability exploitation and upgrading in international joint ventures, Management International Review, 48(2), 227-252.

Abstract Views: 455

PDF Views: 0




  • Review of Offshore Outsourcing

Abstract Views: 455  |  PDF Views: 0

Authors

Abstract


The aim of this paper is to review the earlier studies on offshore outsourcing. Based on the review, the paper put forward the importance of widening the range of earlier studies. Studies are required from service receiver's point of view incorporating their benefits and risks, which are often ignored. The paper also highlighted the scope for further research as offshore outsourcing of services is not limited to a few operational areas. There is a need for empirical studies based on qualitative as well as quantitative measures for a better understanding on the issues related to offshore outsourcing business because of the continuous demand of these services in current global competitive environment. The paper provides synthesis of viewpoints on various dimensions such as reasons behind offshore outsourcing, theoretical justification, and future expectations from the service provider firms

Keywords


Outsourcing, Offshoring, Profitability, BPO, and KPO

References