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A typology of offshoring and outsourcing in electronically transmitted services
Author(s) -
Metters Rich
Publication year - 2008
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2007.02.004
Subject(s) - offshoring , outsourcing , normative , business , typology , contingency , work (physics) , wage , service (business) , industrial organization , labour economics , marketing , economics , mechanical engineering , philosophy , linguistics , archaeology , epistemology , engineering , history
The offshoring and outsourcing of service work from high‐wage to low‐wage countries has received considerable exposure in the popular press. Some have claimed that virtually all services that can be electronically transmitted should be offshored due to the extreme labor rate differentials. Relatively little work has actually been offshored to date, making empirical assessment difficult. Here, a normative model of the appropriate role of offshoring is proposed. We present a strategic contingency model, to be viewed at the process level, intimating that firms with the same processes should come to different solutions regarding these decisions.