Offshore Outsourcing of Services A Stakeholder Perspective

Offshore outsourcing of business processes is a rapidly increasing global phenomenon that requires a greater reliance on the effective development of strategic alliances and inter-firm relationships. The stakeholders involved in these service purchases influence the success or failure of the buyer-supplier relationship. This article examines the key stakeholders involved in the offshore outsourcing of services, determines what expectations these stakeholders hold, and assesses how a buying firm and the offshore supplying firm work together to meet these expectations. The case research method is used to address this phenomenon by studying six U.S.-based, Fortune 500 firms involved in offshore outsourcing of services. These buying organizations initially experienced more complexity than anticipated in engaging with offshore suppliers in outsourcing relationships. To achieve success with these relationships, the buying organizations needed to embrace cultural differences, including the needs of their suppliers' employees.