Offshoring Decisions: A Comprehensive and Conceptual Framework

Abstract

The paper presents complexities involved in offshoring decisions and provides a comprehensive framework for making a reliable decision for offshoring. There is a need for a holistic approach to offshoring decisions. The paper identifies various drivers, categorizes them as revenue or cost drivers, and analyzes their impact on the offshoring outcomes. The framework rationalizes the extremes of unprecedented successes and unexpected failures among organizations engaged in offshore outsourcing. The proposed framework is expected to improve the quality of offshoring decisions. The proposed framework approaches offshore outsourcing decisions at a strategic level and will improve organizations' performance on the triple bottom line.

Sustainable Supply Chains of Sri Lankan Manufacturing Organizations: A Study on Operational Excellence Models During the COVID-19 Pandemic

“…SSC ensures the business processes joint-optimization in terms of economic, social, and environmental performance sustainably encompassing all elements in a supply chain (Li et al, 2006), which assist organizations to improve internal production and supplier/customer processes (Elcio and Wong, 2014) and implement programs (Lu et al, 2012) which structures dynamic organization development and innovation (Gosling et al, 2017) to gain sustainability in organizational performance (Ortas and Moneva, 2014). SSCs focus on reduction in cost (Gurtu et al, 2019), preventing pollution (Wu et al, 2012), reduction in risk, by ensuring transparency in the supply chain networks (Carter and Rogers, 2008). It has substantial impact on organizational dynamic capabilities in a positive manner (Hong et al, 2018), however, the measurement of such initiatives in sustainability differs in each organization (Searcy et al, 2009).…”

Emissions Reduction Policies and Their Effects on Economy

“…Industrialization is rapidly increasing in low-income countries because high-income countries outsource their manufacturing activities (Gurtu et al 2016b). This suggests using consumption-based accounting of national emissions (Gurtu et al 2016a(Gurtu et al , 2016b(Gurtu et al , 2017(Gurtu et al , 2019.…”

Sourcing from China: Approaches and Outcomes for Swedish Firms

“…What seems clear from much of the literature is that one of the primary motivations for such sourcing is to cut costs, whether this is based on exact calculations or assumptions about the Chinese market, for example, based on the labor cost as an input factor. In practice, however, it seems that the picture is more complicated, and many firms have not achieved the savings they were searching for (Fredriksson and Jonsson, 2009;Fredriksson et al, 2010;Gurtu et al, 2019).…”

“…Some authors have raised questions as to whether the sourcing decisions are made in a good and systematic manner (Jones, 2009) and have recently presented more comprehensive frameworks for example for offshoring (Gurtu et al, 2019). Companies may choose to source abroad as part of a general outsourcing decision where the strategic choice is to focus on core competence or minimize transaction costs (Jiang and Qureshi, 2006;Mohiuddin, 2011).…”