Information systems offshore outsourcing

Abstract

PurposeThe present paper has as its aim to deepen in the study of information systems offshore outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of offshore outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography.Design/methodology/approachWith that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.).FindingsOffshore outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer‐provider relationships hide under the umbrella of offshore outsourcing; i.e. it is not a homogeneous phenomenon. The main offshore outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia − outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well.Originality/valueThe conclusions suggest that the range of potential offshore outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as offshore outsourcing destinations is proposed.