| Offshore outsourcing of business processes to geographically distant countries is growing in popularity as firms attempt to reduce labor costs and retain marketplace advantage. This exploratory research looks at purchasing call center services from offshore suppliers. The researcher discovered that an effective process for evaluation, selection, and management of offshore suppliers is critical for success.; To gather rich contextual information about the complex process of offshore outsourcing, case studies were conducted at six different organizations using multiple informants. Motivations, barriers, and benefits derived from offshore outsourcing were analyzed. The processes, participants in the process, measurement, and reward systems were also examined.; A number of other researchers previously examined the relationship between organizational structure and strategy. To manage the additional complexity and risk associated with offshore outsourcing, organizations adopted governance structures that spanned across both strategic and tactical elements of the offshore relationship. Based on the previous studies, this researcher confirmed the argument that structure follows strategy within the area of offshore outsourcing. New structures are developing, including updated procedures for working with people, systems, and controls and new methods of operating and organizing.; This research also provides insights regarding the requirements for offshore service purchasing. As a result of this research, a testable managerial framework was generated that outlines the methodical purchasing process. Along with this framework, this research provides a preview into the composition of the cross-functional buying center for offshore outsourced service purchases. The complexity and risk associated with purchasing these services initiated centralized decision making of the cross-functional teams, formalized contracts, and processes.; Overall as a result of outsourcing, boundaries of firms have been extended as supplying firms located in regions with different languages, cultures, and operating structures perform critical processes. Organizations spend significant resources to minimize the differences between the buying and the supplying firms. The relationship between the buyer and offshore service supplier continues to change. Buying firm employees are being co-located at the offshore supplier site, contract lengths are increasing, and the relationships are becoming strategic. The management of these extended organizations must adapt structure and control mechanisms to maintain success. |
