Offshore outsourcing of information technology enabled supply chain functions: a transaction cost analysis
by Bouchaib Bahli, Suresh Kumar Goyal
International Journal of Logistics Systems and Management (IJLSM), Vol. 1, No. 4, 2005

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.

Online publication date: Mon, 07-Feb-2005

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