Creating value through offshore outsourcing: An integrative framework

Debmalya Mukherjee, Ajai S. Gaur, Avimanyu Datta

Research output: Contribution to journalArticlepeer-review

64 Scopus citations

Abstract

This article proposes an analytical framework to explain value creation through offshore outsourcing by addressing a key question: How do firms create value by outsourcing their business functions to foreign external providers? The growing prevalence of offshore outsourcing as a dominant business practice in global business makes this question worthy of further research attention. Situated within the organizational design literature, our proposed value creation framework also draws from strategic resource management, disintegration, location-specific resourcing, and externalization (D-L-E) and contingency perspectives. Our analysis shows that firms embarking on offshore outsourcing create value by effectively managing their internal and external resources in accordance with a changing global environment. The framework has significant implications for theory and practice and suggests avenues for further research.

Original languageEnglish (US)
Pages (from-to)377-389
Number of pages13
JournalJournal of International Management
Volume19
Issue number4
DOIs
StatePublished - Dec 2013

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Strategy and Management

Keywords

  • DLE framework
  • Offshore outsourcing
  • Resource management
  • Value creation

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