Title: Global engineering offshore outsourcing - a literature review

Authors: Gangadharayya R. Pashupatimath; H. Ramakrishna

Addresses: Department of Industrial Engineering and Management, Dayananda Sagar College of Engineering, Bangalore, India; Actuant India Pvt. Ltd., Bangalore, Municipal No. 10, Bellary Road, Sadashivanagar, Bangalore – 560080, Karnataka State, India ' Department of Industrial Engineering and Management, Dayananda Sagar College of Engineering, Kumaraswamy Layout, Bangalore-560078, Karnataka State, India

Abstract: Globalisation and rapid improvements in information technology have resulted in a closely integrated global labour and capital market where companies have greater access to human capital scattered around the globe. Offshoring has emerged as an effective strategic practice wherein companies relocate their business functions to overseas locations. Companies can set up their own centres or handing over functions to independent foreign providers (offshore outsourcing). Increasingly, standardised information technology and business processes as well as high-valued research and development and product design are being offshored. All the companies which are offshore outsourcing however have become successful in delivering their products faster to the market; they invariables face the challenges in executing this task. This research work elaborate on the models currently being practiced as well as challenges faced and overcoming these challenges. Many solutions to overcome these challenges have been discussed but there is plenty of opportunity to design and practice a model to cater to the challenges so that the huge opportunity for growth can be achieved and a robust business model emerge over the years.

Keywords: engineering service organisations; ESOs; captive centres; original equipment manufacturers; OEMs; skills; multinational corporations; MNCs; global engineering offshore outsourcing; GEOO; offshoring; engineering outsourcing.

DOI: 10.1504/IJBSR.2015.066803

International Journal of Business and Systems Research, 2015 Vol.9 No.1, pp.32 - 48

Available online: 06 Jan 2015 *

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