How Offshore Outsourcing Affects Costs and Value Creation: A Process Perspective on Knowledge-Intensive Business Services

Kristin Brandl, Michael J. Mol

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    Abstract

    Although academic and public interest in service offshoring has increased in recent years, research remains focused mainly on antecedents and benefits of activities, overlooking process aspects. For that reason, we take a process perspective when conceptualizing around offshore outsourcing of knowledge-intensive business services (KIBS) in this research. We characterize and dissect the production process of KIBS into five stages (problem-finding & acquisition, problem-solving, choice, execution, monitoring & evaluation) and consequently
    are able to analyze how offshore outsourcing differentially affects costs and value creation in the respective stages. The reconceptualization enables us to provide a clearer and more fine-grained picture of the effects of offshoring and outsourcing decisions, thus helping to further develop our understanding of the reasoning to relocate services geographical and organizational.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Pages202
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume54
    ISSN2078-4430

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