The Offshoring Challenge

Book excerpt: The continuous search for efficiency gains and the goal of attaining a sustainable competitive advantage have steadily increased the volume of goods and services procured globally from third party vendors. In this context, named as “the next wave of globalization”, the offshoring phenomenon has stimulated research and political debates. With the rise of services offshoring, international value chain disaggregation for services has reached a formerly unknown scale. Also, it is increasingly complex transactions, requiring a higher degree of qualification, which are becoming subject to offshoring as well. The Offshoring Challenge: Strategic Design and Innovation for Tomorrow’s Organization features selected chapters by an international research community on the topic of offshoring. All potential business models from offshore outsourcing to third party providers are covered, from cooperative arrangements to internal organizational set-ups including captive offshore centers. Contributions have significant insights regarding: the increasing offshoring of knowledge-intensive services; the offshoring process; business models incorporating offshoring; the hidden costs of offshoring; and the administration of offshoring activities within firms The book is aimed at a broad audience of scholars, students and practitioners in the fields of strategy, international business and operations management.