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From Captive Centers to Global Integration: Organizational Models and Good Practices in Information Technology Nearshoring and Offshoring

Author

Listed:
  • Markus Westner

    (OTH Regensburg, Germany)

  • Matthias Reicheneder

    (OTH Regensburg, Germany)

  • Markus Matschi

    (4C Group AG, Germany)

Abstract

Contemporary developments in virtual work and global talent management are transforming information technology (IT) nearshoring and offshoring practices, yet research on organizational responses remains limited. Through expert interviews with 33 IT executives (76% chief information officers) from Germany's top 500 companies, this article examines organizational models, strategies, and good practices in IT nearshoring and offshoring. It reveals a shift from traditional captive centers toward fully integrated global teams, enabling high-value task delivery and reflecting increased workforce maturity. Companies are expanding their operations driven by talent needs rather than cost savings, with success factors including employee integration and robust on-site management. This study contributes to theory and practice by providing a framework for understanding organizational models in global IT delivery and offering actionable insights for executives, emphasizing workforce integration over geographical separation.

Suggested Citation

  • Markus Westner & Matthias Reicheneder & Markus Matschi, 2025. "From Captive Centers to Global Integration: Organizational Models and Good Practices in Information Technology Nearshoring and Offshoring," Information Resources Management Journal (IRMJ), IGI Global Scientific Publishing, vol. 38(1), pages 1-25, January.
    • Handle: RePEc:igg:rmj000:v:38:y:2025:i:1:p:1-25
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    References listed on IDEAS

    as
    1. Mukherjee, Debmalya & Kumar, Satish & Pandey, Nitesh & Lahiri, Somnath, 2023. "Is offshoring dead? A multidisciplinary review and future directions," Journal of International Management, Elsevier, vol. 29(3).
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    3. Shirish C. Srivastava & Thompson S.H. Teo & Partha S. Mohapatra, 2008. "Business-Related Determinants of Offshoring Intensity," Information Resources Management Journal (IRMJ), IGI Global Scientific Publishing, vol. 21(1), pages 44-58, January.
    4. Jonathan P Doh & Kraiwinee Bunyaratavej & Eugene D Hahn, 2009. "Separable but not equal: The location determinants of discrete services offshoring activities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 926-943, August.
    Full references (including those not matched with items on IDEAS)

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