The continuous search for efficiency gains and the goal of attaining a sustainable competitive advantage have steadily increased the volume of goods and services procured globally from third party vendors (Kotabe and Murray, 1990). In this context, named as “the next wave of globalization” (Dossani and Kenney, 2007), the “offshoring” phenomenon has stimulated research and political debates. With the rise of “services offshoring”, international value chain disaggregation for services has reached a formerly unknown scale. India, for example, has had a growth of more than 330% in its workforce in the offshoring service industry from the year 2000 to 2004 (Hilsenrath, 2004). The Indian offshoring IT services exports experienced an increase in volume of approximately 675% in the years 1995 to 2002, making up a total volume of 13.5 billion Euro in 2002 (Bhende, Harms and Pohl, 2003). Also, it is increasingly complex transactions, requiring a higher degree of qualification, which are becoming subject to offshoring as well (MGI, 2003; Klingebiel, 2005).
KeywordsAgency Service Single Case Study Specific Research Question Transaction Cost Economic Marketing Service
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