Redefining the paradigm of global competition: offshoring of service firms

Strategic Direction

ISSN: 0258-0543

Article publication date: 20 February 2007

166

Keywords

Citation

Jagersma, P.K. (2007), "Redefining the paradigm of global competition: offshoring of service firms", Strategic Direction, Vol. 23 No. 3. https://doi.org/10.1108/sd.2007.05623cad.003

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited


Redefining the paradigm of global competition: offshoring of service firms

Redefining the paradigm of global competition: offshoring of service firms

Jagersma P.K., van Gorp D.M. Business Strategy Series, 2007, Vol. 8 No. 1

Purpose – The article discusses offshoring as an irreversible trend that is redefining the paradigm of global competition of service firms, and provides insight and practical advice regarding the offshore behavior of service firms for management professionals. Design/methodology/approach – The offshoring process is applied to service firms including lessons learned. It is largely based on the results of a research study among 247 service firms determining their offshore behavior and illustrated with examples of their offshoring activities. Findings – Offshoring is redefining global competition and service firms should use it as a tool to create a competitive advantage vis-à-vis their competitors. In doing so they should carefully prepare offshoring in different phases of the process as suggested in the 4M approach. Moreover, they should decide in an early stage on monitoring, reporting and measuring the offshoring process and secure continuous commitment from management. Research limitations/implications – The offshoring process referred to in this article as the 4M approach should be further tested among service firms. Practical implications – Providing insight and practical advice regarding the offshore behavior of service firms for management professionals. Originality/value – Research in the past has been largely focused on manufacturing firms. This article focuses on service firms and is based on findings of primary research executed by the authors.

Keywords: Off shore, Service industries

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