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Pulling Offshore and Staying Onshore: A Framework for Analysis of Offshoring Dynamics

In: Information Systems Outsourcing

Author

Listed:
  • Erran Carmel

    (American University)

  • Jason Dedrick

    (Personal Computing Industry Center, University of California)

  • Kenneth L. Kraemer

    (Personal Computing Industry Center, University of California)

Abstract

Given that the force of offshoring is one of the most important economic changes in the early 2000s it is vital to understand what propels it further. The landscape of offshoring is such that firms in the wealthy nations (onshore) have already off-shored, sometimes extensively. As researchers, we need to ask not whether the firm will offshore, but rather how far the firm will go offshore and what are the subtle factors that are driving this offshore decision process. Therefore, in this paper we propose a framework in order to understand the firm-level decisions that are not as well understood and not as well researched. There are a number of key variables that we already collectively know about offshoring. First, we already know that offshoring is driven by low wages and large labor pools in India, China and elsewhere. Thus, everything else being equal, work will flow to the less expensive offshore locations.

Suggested Citation

  • Erran Carmel & Jason Dedrick & Kenneth L. Kraemer, 2009. "Pulling Offshore and Staying Onshore: A Framework for Analysis of Offshoring Dynamics," Springer Books, in: Rudy Hirschheim & Armin Heinzl & Jens Dibbern (ed.), Information Systems Outsourcing, pages 375-391, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-88851-2_17
    DOI: 10.1007/978-3-540-88851-2_17
    as

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