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Embracing realism and recognizing choice in IT offshoring initiatives

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  • Lampel, Joseph
  • Bhalla, Ajay

Abstract

As more and more firms move activities offshore to countries that are distantly located from their home base of operations, the initial advantages of making this move are increasingly tempered by realities on the ground. For firms contemplating offshoring today, it is important to weigh the advantages and disadvantages of undertaking or extending this strategy in light of what we now know. Broadly speaking, successful offshoring must begin with an understanding of the market and competitive pressures that encourage offshoring, and then build on recognition of how these pressures can be addressed using or modifying the offshoring options currently practiced. Our discussion of these issues is based on analysis of offshoring of IT-enabled services by Fortune Global 500 firms in such areas as software development and business processes that support customer interaction.

Suggested Citation

  • Lampel, Joseph & Bhalla, Ajay, 2008. "Embracing realism and recognizing choice in IT offshoring initiatives," Business Horizons, Elsevier, vol. 51(5), pages 429-440.
    • Handle: RePEc:eee:bushor:v:51:y:2008:i:5:p:429-440
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    1. Nutt, Paul C, 1998. "Evaluating Alternatives to Make Strategic Choices," Omega, Elsevier, vol. 26(3), pages 333-354, June.
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    Cited by:

    1. Lampel, Joseph & Bhalla, Ajay, 2011. "Living with offshoring: The impact of offshoring on the evolution of organizational configurations," Journal of World Business, Elsevier, vol. 46(3), pages 346-358, July.
    2. Chauhan Rajneesh & Dwivedi Rajeev & Sherry Arun, 2012. "Critical success factors for offshoring of enterprise resource planning (ERP) implementations," Business Systems Research, Sciendo, vol. 3(1), pages 4-13, June.

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