Table 3 - uploaded by Rafiq Dossani
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... number, size, and diversity of organizations offshoring business processes is great. The two important dimensions for categorizing these firms, are whether the Indian-owned and operated or a multinational, and whether they are a captive or firm that undertakes outsourced work (see Table 3). Because the potential market is so large, and the economics so compelling, there have been a plethora of entrants from a large variety of backgrounds TABLE 4 Types OF FIRMS. ...
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... The price advantage of the largest whitecollar offshoring destination is crucial for decision about offshoring. In 2002, the costs of providing call centre services in the US were more than 3 times that of India (Dossani & Kenney, 2003). ...
... First, offshoring has been associated with cost reductions through factor price arbitrage across nations (Caves, 1996;Nachum & Zaheer, 2005). Second, it has been argued that as processes are moved overseas, the need to migrate the process from one nation to another can lead to quality improvements in the process itself as it is studied and deconstructed for migration (Caves, 1996;Dossani & Kenney, 2003;Holm & Pedersen, 2000;Lewin & Peeters, 2006;Nachum & Zaheer, 2005;Pereira, Malik, Howe-Walsh, Munjal, & Hirekhan, 2017). Third, offshoring has been associated with enabling firms to tap into different local networks of knowledge (Alcacer & Chung, 2007;Cantwell, 1989;Chung & Alcacer, 2002;Florida, 1997;Granstrand, Hakanson, & Sjolander, 1992;Niosi, 1999), and thus expanding the learning opportunities of the firm. ...
... As firms learn through their offshoring engagement they consider broadening the range of activities they offshore ( Maskell et al., 2007) or unwinding services if they discover hidden costs ( Dibbern et al., 2008). The publication title "Went for Cost, Stayed for Quality?" (Dossani & Kenney, 2003) summarizes very well one common strategic refocusing move firms make once they embark into offshoring. ...
Offshoring has evolved into a widespread management practice affecting the competitiveness of firms, the welfare of nations and the job situation of individuals. Its transformative and disruptive nature means offshoring is debated by academic researchers, the public and policy makers; yet offshoring is understood very differently by different parties, leading to vagueness and ambiguity that often remains implicit. As a result, the debate in research and practice is ineffective and based on partial understandings, culminating in latent construct-based disagreement, and poor researchbased decisions in management and policy. Synthesising 73 offshoring definitions this research identifies the key characteristics of offshoring, generates a definition that clearly encompasses the relevant dimensions and recognises peripheral variations of the phenomenon. As a result, this paper contributes to the heated discourse on offshoring by providing solid conceptual ground. Understanding what offshoring is, and what it is not, supports empirical measurement and comparison based on a valid conceptual construct. It provides academic researchers with conceptual foundation for navigating and synthesising offshoring research. Practitioners and policy makers can design more effective offshoring instruments and benchmarks.
... This index contains information on three occupational characteristics considered in the literature: routines(Autor et al. 2003, Levy andMurnane 2007), whether a job produces impersonal services(Blinder 2006) and whether it is ICT-enabled(Dossani and Kenney 2003, Garner 2004).Jensen andKletzer (2006, 2010) provide an alternative measure of tradability based on the geographical concentration of services. As for the correlation between employment and wage changes,Crinò (2010) finds this result after controlling for variations in occupational supply.4 ...
en This paper develops a two‐sector model of trade in goods and intermediate tasks that differ in tradability and skill intensity. A skill‐abundant country with high productivity is shown to offshore more unskilled tasks than skilled tasks, without relying on a particular correlation structure between tradability and skill intensity. With putty‐clay technology that allows retraining in the long run, transition from the non‐offshoring to the offshoring equilibrium generates wage and employment effects that switch from negative to positive as tradability declines, with the switches occurring at a higher degree of tradability for skilled tasks. This is consistent with the empirical literature.
Résumé
fr Un modèle des effets de la délocalisation des services sur les salaires et l’emploi. Ce texte développe un modèle à deux secteurs de commerce international de biens et de tâches intermédiaires qui diffèrent tant par leur cessibilité que par l’intensité des qualifications requises. On montre qu’un pays qui a une abondance de qualifications et une forte productivité délocalise les tâches réclamant moins de qualifications sans s’en remettre à une structure de corrélation particulière entre cessibilité et intensité des qualifications. Avec une technologie de type putty‐clay qui permet la réadaptation du travail à long terme, la transition d’un équilibre sans délocalisation à un équilibre avec délocalisation engendre des effets de salaires et d’emplois qui passent de négatifs à positifs à proportion que la cessibilité décline, avec des réarrangements pouvant se passer avec plus grande cessibilité pour des tâches à plus forte intensité en qualifications. Voilà qui est cohérent avec la littérature empirique.
... The report discusses initiatives of government towards IT/ITeS, Industry profile and human resources development. Dossani and Kenney (2003) explain formal education and firm specific capabilities are the two significant capabilities. Nations found with differences in their respective strength in these capabilities, The extent of quality delivered also differ in off shoring from home to host country. ...
... However, their suppliers develop their business from the knowledge gathered through outsourcing and aim to "move up" their respective value chains (cf. Dossani and Kenney, 2003;Holtgrewe and Meil, 2008b). A standardised and modular product and service can also be copied more easily by new market entrants. ...
... Even more recently, technology-driven market-or community-based forms of accessing potential workforces are developing (crowdsourcing). The sector has indeed shown interrelated processes of standardisation and industrialisation on the one hand (Barrett, 2005), and also an upgrading of outsourced tasks with subcontractors "moving up the value chain" (Dossani and Kenney, 2003) on the other. ...
... However, these suppliers develop their own business from the knowledge gathered through outsourcing and aim to "move up" their respective value chains (cf. Dossani and Kenney, 2003;Holtgrewe and Meil, 2008b). A standardised and modular product and service can also be copied more easily by new market entrants. ...
Summary is available at http://www.uni-europa.org/wp-content/uploads/2016/12/20170308_Outsourc_Report-Exec-Sum_EN_FV.pdf
... A common feature connecting these knowledge and service-underclass workers is that both are among the beneficiaries of the recent surge in offshoring of business service activities to Mumbai. While the presence of knowledge workers is used to explain the augmentation and advancement of ICT-ITES-related services (see Carmel & Tjia, 2005;Dahlman & Utz, 2005;Dossani & Kenney, 2003), the contributions of service-underclass workers often remain unmentioned in both academic and policy circles. The only reference one comes across is a cursory note that the ICT-ITES firms have generated plenty of indirect jobs and business opportunities in supportservice segments (see Kite, 2014;NASSCOM, 2010). ...
The ICT-ITES sector in India has been a major driver of economic growth and is deemed to provide a range of opportunities for cognitive-cultural (knowledge) workers. In the past decade, extensive research has been conducted on access to the sector and opportunities for upward labour mobility. Surprisingly, few studies have focused on the firms and workers indirectly engaged in the ICT-ITES sector and whether and how they are able to benefit from the growth of the sector. Using the concepts of economic upgrading and social upgrading in Global Production Networks, this thesis empirically assesses the less-explored case of indirect jobs and business opportunities created in the support-service segments (security, facilities and cab-services) serving ICT-ITES firms in Mumbai, India. Each empirical chapter deals with the dimensions of either economic upgrading (of firms) or social upgrading (of workers) in the support-service industry to present a more nuanced understanding of the local outcomes of ICT-ITES firms’ functioning. The thesis contributes to debates on service-sector-led development in South Asia (India) by identifying how it affects people and businesses, indirectly involved in the ICT-ITES sector.
... R&D offshoring and relocation activities can be defined in terms of spatial and ownership boundaries (e.g. Dossani and Kenney, 2003;Olsen, 2006). In terms of spatial dimension it can be differentiated between relocation activities within the country (national or onshore) or to foreign locations (international or offshore). ...
In recent years, after a wave of production relocations, also relocation of R&D to low-wage countries, particularly in Asia and Eastern Europe, has become more important. This paper analyses which motives and characteristics are important for both R&D and production relocations, and thus may serve as a precondition for co-location strategies. The analysis is based on data of 1,484 German manufacturing companies from the European Manufacturing Survey (EMS). Results show that the lack of talent at the home base and the reduction of labour costs are the most important motives for the R&D relocation mode, whereas the access to new markets is much more relevant for the expansive R&D offshoring mode.While labour-cost-oriented relocations and market-oriented offshoring strategies bear the highest potentials for foreign R&D and production co-location strategies, the seeking for innovative knowledge and highly-qualified personnel rather call for separated foreign R&D units.
... Offshoring of business services has enormously increased in the last decade (e.g. Doh, 2005;Dossani and Kenney, 2005;Kotabe et al., 2009;Luzzini and Ronchi, 2011;Lewin and Volberda, 2011). However, outcomes are far from optimum, given the level of complexity determined by location characteristics, types of tasks, choice of suppliers and so on, making implications of professional services outsourcing more problematic than manufacturing outsourcing (Ellram et al., 2008). ...
The present paper deals with the performance implications of service activities offshoring, meant as the delocalization of business services in foreign countries. Data have come from the Offshoring Research Network (ORN) and have been analysed using an Exploratory Factor Analysis to aggregate variables first and then through a two-stage approach to control for the potential endogeneity problem arising from the self-selection bias in the regression models. Through these models we investigate the relationship between the motivations leading to choose a specific offshoring location (i.e. strategic location drivers: low cost, resources availability, cultural proximity, and the presence of local networks) and both operational and strategic performance of the offshoring firm. Provided that offshoring may occur either through a wholly-owned subsidiary (captive offshoring) or by outsourcing the service activity (offshore outsourcing), we provide a contribution by investigating the moderating role of the governance model on the relationship between location drivers and performance. Our results show that both operational and strategic performance are affected positively by low cost and resources availability, while local networks has a positive impact on strategic performance and negative one on operational performance. Moreover, offshore outsourcing strengthens the effect of resources availability and local networks on operational performance, as well the effect of cultural proximity and resource availability on strategic performance, while captive offshoring strengthens the effect of low cost and local networks on strategic performance.
... 7 To this purpose, he builds a continuous index of tradability. His index considers three tradability characteristics mentioned in the literature: how routine a job is (Autor et al. 2003 andMurname, 2006), whether it produces impersonal services (Blinder 2006) and whether it is ICT-enabled (Garner, 2004, Dossani andKenney 2003). Jensen andKletzer (2006 and provide an alternative measure of tradability based on the geographical concentration of services. ...
