Modeling the Motivations for Offshore Outsourcing: A Theoretical Approach

Offshore outsourcing by organizations has been gaining momentum, powered by advances in information technology and costs differentials. A review of the literature on the subject, though, shows that those scholars who have focused on offshore outsourcing have centered their attention on the activitie...

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Bibliographic Details
Main Authors: Elsa Nieves-Rodriguez, Lorena A. Palacios-Chacon, Myra Mabel Pérez Rivera, Victor Quiñones-Cintrón
Format: Article
Language:English
Published: Universidad Nacional de Colombia 2018-04-01
Series:Innovar: Revista de Ciencias Administrativas y Sociales
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Online Access:https://revistas.unal.edu.co/index.php/innovar/article/view/70475
Description
Summary:Offshore outsourcing by organizations has been gaining momentum, powered by advances in information technology and costs differentials. A review of the literature on the subject, though, shows that those scholars who have focused on offshore outsourcing have centered their attention on the activities of multinational enterprises (MNEs) in the manufacturing and services sectors, leaving behind small and medium enterprises (SMEs). Through a number of propositions, this paper suggests that SMEs could also benefit from offshore outsourcing given their particular characteristics and needs. The paper also discusses the similarities and differences in the motivations that SMEs might have in subcontracting their activities outside their boundaries in comparison to MNEs. Knowing this information is important for foreign suppliers in order to adapt and expand their offerings to the needs of these particular firms.
ISSN:0121-5051
2248-6968