"Beyond Cost Reduction: The Risks and Rewards of Global Services Sourcing"
Publication type: Web-only article
Some years back, Global Services Sourcing (GSS)1 was garnering anecdotal coverage in the media as a novel way for some businesses to generate cost reductions. As the phenomenon has gained momentum, it has polarized both experts and the public into ?for? or ?against? positions. Managers have been exposed to a steady diet of anecdotes and rhetoric on how offshoring affects employment, customer service quality and costs. From the perspective of business strategy, these accounts leave a number of questions unanswered: What is the totality of risks and rewards that offshoring offers today? How is this landscape evolving? What areas are more or less advanced? What are best practices in the design and implementation of offshoring? What learnings have the pioneers accumulated along the way, and what models have they developed to maximize the impact of their offshore operations at a global level? These questions have enormous strategic and financial implications for businesses, and yet are not presently understood in any comprehensive and rigorous manner.
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