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Offshoring: The Transition From Economic Drivers Toward Strategic Global Partnership and 24-Hour Knowledge Factory

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  • Amar Gupta

    (University of Arizona, USA)

  • Satwik Seshasai

    (International Business Machines (IBM) Corp., and Massachusetts Institute of Technology, USA)

  • Sourav Mukherji

    (IIM Bangalore, India)

  • Auroop Ganguly

    (Oak Ridge National Laboratory, USA)

Abstract

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 model studies the impact of offshoring with respect to the complexity and strategic nature of the tasks and presents a decision strategy for obtaining value through offshoring of increasingly complex tasks. The result is an integrated “24-hour knowledge factory” that is based on a sustainable global model rather than a short term fiscal model. This 24-hour paradigm embodies the shift-style workforce that evolved for the manufacturing sector during the Industrial Revolution and relies on a set of critical success factors in the current environment. A case example is provided from IBM to illustrate these underlying critical success factors.

Suggested Citation

  • Amar Gupta & Satwik Seshasai & Sourav Mukherji & Auroop Ganguly, 2007. "Offshoring: The Transition From Economic Drivers Toward Strategic Global Partnership and 24-Hour Knowledge Factory," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 5(2), pages 1-23, April.
    • Handle: RePEc:igg:jeco00:v:5:y:2007:i:2:p:1-23
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    Cited by:

    1. Michael Brandau & Heinz-Werner Ufer, 2008. "ZP-Stichwort: Offshoring," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 19(3), pages 371-374, December.
    2. Framarz Byramjee & Parimal Bhagat & Andreas Klein, 2010. "The Moderating Role Of Relationship Quality In Determining Total Value Orientation," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 49-62.
    3. Butler, Bella & Soontiens, Werner, 2015. "Offshoring of higher education services in strategic nets: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 50(3), pages 477-490.
    4. Mirani, Rajesh, 2013. "A case study of morphogenetic change in long-term offshoring," International Journal of Information Management, Elsevier, vol. 33(4), pages 663-673.
    5. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, vol. 120(2), pages 512-524, August.

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