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Offshore Outsourcing Business Models: An Analysis of Four Cases

In: GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges

Author

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  • Naureen Khan
  • Guy Fitzgerald

Abstract

This chapter discusses some key themes and issues in relation to IT offshore outsourcing. In particular it provides an analysis of four U.K. based companies undertaking IT offshore outsourcing projects. Each company represents an example of different approaches to outsourcing. These approaches are argued to represent more than just approaches and that they are in fact significantly different business models. The four different models are: (i) direct offshore outsourcing, (ii) third party offshore outsourcing, (iii) joint venture offshore outsourcing, and (iv) wholly owned subsidiary. These approaches highlight the heterogeneous nature of the offshore outsourcing phenomenon. A framework is then proposed based on the literature and the study which provides four important elements and related subfactors of interest and importance. This framework is then used to analyze the cases, highlighting some of the drivers and risk factors of the models for decision making from the customer’s perspective.

Suggested Citation

  • Naureen Khan & Guy Fitzgerald, 2017. "Offshore Outsourcing Business Models: An Analysis of Four Cases," World Scientific Book Chapters, in: Shailendra C Jain Palvia & Prashant Palvia (ed.), GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges, chapter 10, pages 375-406, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813109315_0010
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    More about this item

    Keywords

    Outsourcing; ITO; BPO; KPO; Labor Arbitrage; Surrogate Motherhood; Insourcing; Offshoring; Onshoring; Cloud Sourcing; Crowd Sourcing; SaaS; Tele-Radiology; Joint Venture; Medical Tourism;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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