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Creating value through offshore outsourcing: An integrative framework

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  • Mukherjee, Debmalya
  • Gaur, Ajai S.
  • Datta, Avimanyu
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    Abstract

    This article proposes an analytical framework to explain value creation through offshore outsourcing by addressing a key question: How do firms create value by outsourcing their business functions to foreign external providers? The growing prevalence of offshore outsourcing as a dominant business practice in global business makes this question worthy of further research attention. Situated within the organizational design literature, our proposed value creation framework also draws from strategic resource management, disintegration, location-specific resourcing, and externalization (D–L–E) and contingency perspectives. Our analysis shows that firms embarking on offshore outsourcing create value by effectively managing their internal and external resources in accordance with a changing global environment. The framework has significant implications for theory and practice and suggests avenues for further research.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 19 (2013)
    Issue (Month): 4 ()
    Pages: 377-389

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    Handle: RePEc:eee:intman:v:19:y:2013:i:4:p:377-389

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    Related research

    Keywords: Offshore outsourcing; Resource management; Value creation; DLE framework;

    References

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    Cited by:
    1. Jensen, Peter D. Ørberg & Larsen, Marcus M. & Pedersen, Torben, 2013. "The organizational design of offshoring: Taking stock and moving forward," Journal of International Management, Elsevier, vol. 19(4), pages 315-323.

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