Offshore Behavior of Service Firms: Policy Implications for Firms and Nations

Abstract

The aim of this paper is to provide a more in-depth view on the ofshore behavior of service firms and translatingjndings of an extensive research study on ofshoring in the service sector into policy implications for firms and nations. In the article a distinction is made between dzflerent types of ofshoring service firms use to relocate their business activities and jobs involved to foreign locations, i.e. under direct control (captive ofshoring;) or using an intermediary (ofshore outsourcing;) or a combination of both, as a special form of internationalization. The findings of our research study show that dzferent motives result in distinct choices of service firms for ofshore outsourcing or captive oflshoring and oflshore locations. Furthermore, various categories of motives relate to dzyerent barriers. More importantly, results of this study show that alignment of initial motives and set goals in different phases of the offshoring process increases the success rate of ofshoring by service firms.

Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions

“…4. Access to global markets: A client organization's desire or need to gain access to global markets by outsourcing to providers in those markets (e.g., Gorp et al, 2007). 5.…”