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Information systems offshore outsourcing

71 citations0/0 files storedIndustrial Management & Data Systems

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Outsourcing and Supply Chain Management International Business and FDI Information Systems Education and Curriculum Development

Abstract

Purpose The present paper has as its aim to deepen in the study of information systems offshore outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of offshore outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography. Design/methodology/approach With that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.). Findings Offshore outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer‐provider relationships hide under the umbrella of offshore outsourcing; i.e. it is not a homogeneous phenomenon. The main offshore outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia − outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well. Originality/value The conclusions suggest that the range of potential offshore outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as offshore outsourcing destinations is proposed.

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References

2007The Maturation of Offshore Sourcing of Information Technology Work 2005Critical success factors from IT outsourcing theories: an empirical study 1994A descriptive study on the outsourcing of information systems functions 2004Key Issues for Global it Sourcing: Country and Individual Factors 2006Maturity model for IT outsourcing relationships 2000Using analytic hierarchy process to analyze the information technology outsourcing decision 2005Risks factors associated with offshore IT outsourcing 2005Small Firms and Offshore Software Outsourcing

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2012Security risks in service offshoring and outsourcing 2008Information Systems Outsourcing Reasons And Risks: An Empirical Study 2007Testing resource‐based propositions about IS sourcing decisions 2013Information systems offshore outsourcing: managerial conclusions from academic research 2009Performance measurement in business process outsourcing decisions 2010

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