Title: Offshore outsourcing of information technology enabled supply chain functions: a transaction cost analysis

Authors: Bouchaib Bahli, Suresh Kumar Goyal

Addresses: John Molson School of Business, DS and MIS Department, Concordia University, 1550 de Maisonneuve Blvd., W., Montreal H3G 1N2, Canada. ' John Molson School of Business, DS and MIS Department, Concordia University, 1550 de Maisonneuve Blvd., W., Montreal H3G 1N2, Canada

Abstract: A shortage of domestic skilled information technology professionals and the availability of talent at a fraction of cost in countries like India and China, more and more companies are going global when it comes to outsourcing IT-enabled supply chain activities. Making a decision about whether or not to move these activities offshore is a decision of far-reaching consequences. In this paper, we address this issue from a transaction economic perspective. Transaction costs theory is used as a framework of analysis to examine offshore sourcing decisions. The paper discusses some of the practical and research implications of these results.

Keywords: offshore sourcing; supply chain management; transaction costs theory; information technology; transaction cost analysis.

DOI: 10.1504/IJLSM.2005.006239

International Journal of Logistics Systems and Management, 2005 Vol.1 No.4, pp.366 - 381

Published online: 07 Feb 2005 *

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