Resource title

Learning Paths to Offshore Outsourcing - From Cost Reduction to Knowledge Seeking

Resource image

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Resource description

A corporation’s offshore outsourcing may be seen as the result of a discrete, strategic decision takenin response to an increasing pressure from worldwide competition. However, empirical evidence ofa representative cross-sector sample of international Danish firms indicates that offshore sourcing inlow-cost countries is best described as a learning-by-doing process in which the offshoreoutsourcing of a corporation goes through a sequence of stages towards sourcing for innovation.Initially, a corporation’s outsourcing is driven by a desire for cost minimization. Over a period oftime the outsourcing experience lessens the cognitive limitations of decision-makers as to theadvantages that can be achieved through outsourcing in low-cost countries: the insourcer/vendormay not only offer cost advantages, but also quality improvement and innovation. The qualityimprovements that offshore outsourcing may bring about evoke a realization in the corporation thateven innovative processes can be outsourced.

Resource author

Peter Maskell, Torben Pedersen, Bent Petersen, Jens Dick-Nielsen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7885

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