THE CASE FOR BUSINESS SERVICES OFFSHORING
Journal Title: MANAGERIAL CHALLENGES OF THE CONTEMPORARY SOCIETY - Year 2018, Vol 11, Issue 2
Abstract
The offshoring and, its geographically-close sibling, nearshoring of business services has been a trend for more than 20 years with a strong growth across the world in the last decade. Why do companies currently decide to offshore their business services was the aim of this research which was conducted by applying a survey to companies which setup their centers in Cluj as well as in international locations. The research included companies which setup their own shared services centers (SSC) and companies which decided to outsource to a business process outsourcing (BPO) partner. Having as respondents 33 decision makers, the paper adds to the current knowledge of why companies decide to offshore, how many locations they analyze, how the due diligence process is conducted, and what challenges they encountered in the process. Even considering the limitations around the sample size of the respondents, this research contributes with solid primary data on the topic, data which has been lacking since the dismantling of the Offshoring Research Network at Duke University. The main finding is that cost optimization is still one of the main drivers, but additional reasons like the availability of the talent pool in home markets play and important role.
Authors and Affiliations
B. SURDEA-BLAGA
Keywords
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