Knowledge (XXG)

Offshoring Research Network

Source πŸ“

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development. Most recently, the ORN project has positioned itself as a research project focusing on studying companies in their transition to globalizing their business functions, processes and administrative services. Offshoring is understood as an intermediary step towards evolving new global organizational capabilities rather than an end in itself.
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E.g. Lewin, A.Y. et al. (2009) Why companies are offshoring innovation? The emerging global race for talent. Journal of International Business (forthcoming); Lewin, A.Y. & Peeters, C. (2006) The Top-Line Allure of Offshoring. Harvard Business Review, 84(3), p.22-24; Lewin, A.Y. & Peeters, C.
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See e.g. Dossani, R.; Kenney, M. (2007) The next wave of globalization: relocating service provision to India. World Development, 35(5), p. 772-791. ; Doh, J.P. et al. (2009) Separable But Not Equal: The Location Determinants of Discrete Offshoring Activities. Journal of International Business
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Whether offshoring is primarily driven by costs, by the global search for talent or a combination of both has been widely debated. Some scholars argue that science and engineering degrees in India and other emerging economies are, on average, not yet compatible with degrees in the U.S. and Western
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in a way that help them survive in a changing, competitive environment. As companies face various challenges related to offshoring, for example the challenge of attracting and retaining talent, or of losing managerial control and process knowledge, they are forced to develop new capabilities that
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Recent studies further indicate that these clusters increasingly show similar institutional features across the world, such as collaborative agreements between foreign firms and local universities, which are a result of local embedding and sourcing strategies of multinational enterprises across
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While the ORN surveys confirm the importance of costs, they also reveal that companies use offshoring as a means to access talent pools outside their home countries, in particular for higher-skilled work. This trend has been explained by an increasing supply of science and engineering talent in
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These new types of clusters are highly dependent on foreign investment and are characterized by the supply of specialized talent and expertise that is demanded across industries. One key example of such a cluster is Bangalore for IT-related services and software programmers who have developed
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The ORN research team has started to conduct survey- and case study-based research to better understand the development of these clusters. A very recent project, for example, seeks to investigate the emergence of new IT and software development clusters in Latin America which attract foreign
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The findings from the annual research surveys have shifted the focus of ORN research over time. After its initial orientation to offshoring white-collar work, the ORN project has put more emphasis on the global search for talent and offshoring of higher-skilled tasks, in particular product
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of higher-skilled work allowing for the use of less qualified personnel for lower costs. According to ORN studies, the search for talent and cost considerations therefore depend on changes in technology, education policies, firm capabilities and economic conditions.
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of location choices and the delivery of offshore services from particular locations. Other scholars have also looked into the emergence of offshore destinations, in particular in India, and the factors contributing to the selection of locations by investors.
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A key ORN finding is the increasing importance of access to qualified personnel as a driver of offshoring decisions. Most scholars have argued that offshoring is primarily driven by opportunities to reduce labor costs and by labor arbitrage effects.
1124:, Vol. 97.1, p. 13-25.; Farrell, D. et al. (2006) Sizing the Emerging Global Labor Market: Rational Behavior from Both Companies and Countries Can Help It Work More Efficiently. Academy of Management Perspectives 20.4, p.23-34. 1081:
See e.g. Blinder, A. S. (2006). Offshoring: The next industrial revolution? Foreign Affairs, 85(2), p. 113–128; Levy, D.M. (2005). Offshoring in the new global political economy. Journal of Management Studies, 42 (3), p.
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Manning, S.; Ricart J.-E.; Rosatti Rique, M.S.; Lewin, A.Y. (2010) From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment. Journal of International Management, 16(4), p.
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Saxenian, AL (2005) From Brain Drain to Brain Circulation: Transnational Communities and Regional Upgrading in India and China. Studies in Comparative International Development, 40.2, p. 35-61;
146: 180:. Dr. Arie Y. Lewin, Professor of Strategy and International Business and Director of Duke CIBER, was the initiator and has been the Lead Principal Investigator of the ORN project. 1092:
Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent, Academy of Management Perspectives 22.3, p.35-54.
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Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent Academy of Management Perspectives 22.3, p.35-54.
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Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent Academy of Management Perspectives 22.3, p.35-54.
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One key proposition raised by the ORN research team is that offshoring is an intermediary step to evolving new global organizational capabilities rather than an end in itself.
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Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent, Academy of Management Perspectives 22.3, p. 39.
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It is further reinforced by restrictive visa policies in the U.S. and incentives for foreign graduates to return to their home countries, a recent phenomenon referred to as
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Bresnahan, T. et al. (2001) 'Old Economy' Inputs for 'New Economy' Outcomes: Cluster Formation in the New Silicon Valleys. Industrial and Corporate Change, 10(4), 835-860.
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However, foreign client firms sometimes respond to that challenge by setting up complex collaborations with local universities to secure access to qualified personnel.
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business functions or processes supporting home-based or global operations from a foreign country, either through wholly owned organizational units (captive offshoring/
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This trend is increasingly being discussed in the academic and practitioner-oriented literature. The economist Alan Blinder argues that technical processes, such as
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specialized service capabilities, which are in demand worldwide in several different industries, including manufacturing, financial and professional services.
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SSRN-Securing Access to Lower-Cost Talent Globally: The Dynamics of Active Embedding and Field Structuration by Stephan Manning, Joerg Sydow, Arnold Windeler
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Porter, M. (2000) Location, Competition, and Economic Development: Local Clusters in a Global Economy. Economic Development Quarterly, Vol. 14(1), p. 15-34.
1167:"Emerging giants, aspiring multinationals and foreign executives: Leapfrogging, capability building, and competing with developed country multinationals" 939: 860:
One major factor contributing to recent offshoring and outsourcing trends is the emergence of new geographic knowledge services clusters. In general,
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Lewin, A.Y., Peeters, C. (2006) Offshoring Work: Business Hype or the Onset of Fundamental Transformation? Long Range Planning, Vol 39.3, p. 221-239.
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See also Athreye, S.S. (2005) The Indian software industry and its evolving service capability. Industrial and Corporate Change, 14(3), p. 393-418.
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Brusoni, S. (2005) The Limits to Specialization: Problem Solving and Coordination in 'Modular Networks' Organization Studies 26(12), p. 1885-1907.
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In the offshoring space, a new type of cluster is emerging, quite different from , which often serves as a prototype of an industry cluster.
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Europe. Therefore, the supply of qualified talent in emerging economies is more limited than often argued in the business press.
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Prof. Arie Y. Lewin, Dr. Carine Peeters (2004–2006), Dr. Stephan Manning (2006–2009), Dr. Nidthida Perm-Ajchariyawong (Since 2008)
1198:"Typologies: What types of foreign executives are appointed by local organisations and what types of organisations appoint them?" 1197: 1120: 717: 1008: 1353:(2006) Offshoring Work: Business Hype or the Onset of Fundamental Transformation? Long Range Planning, Vol 39.3, p. 221-239; 300: 983: 958: 753: 424: 213: 177: 142: 848:
Other researchers argue that knowledge-intensive tasks remain difficult to decompose because of the complex and often
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In general, organizational capabilities denote the ability of organizations – in this case firms – to deploy and use
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can be defined as geographic concentrations of firms and institutions related to particular industries or fields.
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emerging economies, e.g., India, and the increasing difficulty of finding talent in the U.S. and Western Europe.
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The ORN project was launched in 2004 by the Center for International Business Education and Research (CIBER) at
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See e.g. Blinder, A. S. (2006). Offshoring: The next industrial revolution? Foreign Affairs, 85(2), p. 113–128
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is an international network of researchers and practitioners studying organizations in their transition to
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A longer-term project involves the identification of knowledge service clusters around the world, using a
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their business functions, processes and administrative services. The ORN conducts annual surveys tracking
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helps decompose and separate technical processes which can then be undertaken and coordinated remotely.
1136:"Foreign executives in local organisations: An exploration of differences to other types of expatriates" 933: 920: 749: 359: 1423: 1116:
Getting the Numbers Right: International Engineering Education in the United States, China, and India
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strategies, drivers, concrete implementations and plans across all business functions and processes.
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Research papers based on ORN data have been presented at major academic conferences in the field of
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help them manage offshore operations and that fundamentally transform their internal processes.
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German Journal of Research in Human Resource Management / Zeitschrift fΓΌr Personalforschung
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Founding Member of the ORN Best Practices Institute and European Corporate Client Survey
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Some Asian companies, for example, have recently hired a number of Western managers.
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OECD (2008) The Global Competition for Talent: Mobility of the Highly Skilled. Paris.
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Heijmen et al. (2009) Offshoring Reaches the C-Suite 2007/8 ORN Survey Report.
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and engineering support, are becoming easy to offshore because advanced
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The ORN surveys reveal that more and more firms are offshoring
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International Association of Outsourcing Professionals (IAOP)
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Corporate Client Survey (2006), Service Provider Survey (2007)
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Offshoring, according to the ORN, refers to the process of
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3rd Annual International Research Conference on Offshoring
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Arp, Frithjof; Hutchings, Kate; Smith, Wendy A. (2013).
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Center for International Business Education and Research
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International Association of Outsourcing Professionals
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Previously, offshoring was mainly associated with 274:, Center for Strategic Management and Globalization 110: 98: 88: 83: 71: 61: 47: 33: 23: 18: 1261: 1259: 919:research, in particular at annual meetings of the 879:investors from Spain and the U.S. in particular. 332:Solvay Brussels School of Economics and Management 301:Rotterdam School of Management, Erasmus University 1057: 1055: 678:Academic conferences and associated activities 642:Software Information and Industry Association 789:Also, recent studies suggest a trend towards 532:Prof. Takahiro Fujimoto, Prof. Youngwon Park 427:, Centre for Industry and Innovation Studies 8: 619:Service Provider Survey, Academic Conference 295:Prof. Torben Pedersen, Prof. Bent Petersen 1369:Offshoring Research Network (ORN) homepage 542: 191: 940:Journal of International Business Studies 448:Prof. Stephen Chen; Prof. Oscar Hauptman 391:WHU – Otto Beisheim School of Management 106:Clients mainly from US and Western Europe 116:Across industries and business functions 1236: 1234: 1029: 1414:Research and development organizations 891:New global organizational capabilities 856:Geographic knowledge services clusters 852:involved in carrying out these tasks. 15: 7: 1429:International business organizations 746:University of Maryland, College Park 1048:Homepage of Professor Arie Y. Lewin 421:University of Newcastle (Australia) 1394:CIBERweb: Information about CIBERs 979:Information technology outsourcing 934:Academy of Management Perspectives 828:Information Technology Outsourcing 14: 925:Academy of International Business 160:) or external service providers ( 67:From Western Europe and Australia 1121:Journal of Engineering Education 718:Florida International University 515: 487: 459: 431: 395: 369: 337: 306: 278: 249: 220: 1009:Recruitment process outsourcing 629:Enterprise Software Roundtable 551: 548: 545: 203: 200: 197: 194: 168:History and current objectives 1: 984:Knowledge process outsourcing 423:, Newcastle Business School; 245:, Manchester Business School 959:Business process outsourcing 754:University of North Carolina 591:U.S. Corporate Client Survey 425:University of Western Sydney 214:The Fuqua School of Business 178:The Fuqua School of Business 143:The Fuqua School of Business 802:Globalization of innovation 124:Offshoring Research Network 104:Service providers globally 19:Offshoring Research Network 1445: 1217:10.1177/239700221302700302 1140:Journal of Global Mobility 1114:Gereffi, G. et al. (2008) 272:Copenhagen Business School 1171:Human Resource Management 989:Legal process outsourcing 734:University of Connecticut 726:Michigan State University 557:Archstone Consulting LLP 78:offshoring.fuqua.duke.edu 1152:10.1108/JGM-01-2013-0006 824:research and development 760:Global search for talent 476:Prof. Christiane Prange 243:University of Manchester 233:2004 (Initiating School) 56:Fuqua School of Business 1019:Supply chain management 946:Harvard Business Review 691:Service Provider Survey 665:Service Provider Survey 645:Service Provider Survey 632:Service Provider Survey 560:Corporate Client Survey 100:Origin of participants: 1343:Studies (Forthcoming). 1196:Arp, Frithjof (2013). 1165:Arp, Frithjof (2014). 917:international business 843:information technology 602:PricewaterhouseCoopers 504:Prof. Geon-Cheol Shin 454:EMLYON Business School 414:Thomas Hutzschenreuter 137:The ORN is managed by 1389:ORN Group on LinkedIN 921:Academy of Management 750:University of Memphis 549:Sponsored activities 386:Prof. Joan E. Ricart 360:University of Navarra 354:Prof. Carine Peeters 266:Prof. Silvia Massini 63:Partner universities: 39:Prof. Arie Y. Lewin ( 1384:The Conference Board 994:Offshore outsourcing 812:software development 742:University of Kansas 738:University of Hawaii 587:The Conference Board 482:Kyung Hee University 364:IESE Business School 162:offshore outsourcing 90:No. of participants: 1244:. Papers.ssrn.com. 929:Long Range Planning 675:University CIBERs 571:Booz Allen Hamilton 539:Sponsoring partners 510:University of Tokyo 884:longitudinal study 832:business processes 722:Indiana University 195:University/school 1374:ORN Group on XING 1183:10.1002/hrm.21610 907:Academic research 862:business clusters 774:brain circulation 730:Temple University 715: 714: 536: 535: 188:Research partners 120: 119: 1436: 1357: 1350: 1344: 1340: 1334: 1328: 1322: 1319: 1313: 1310: 1304: 1301: 1295: 1292: 1286: 1283: 1277: 1274: 1268: 1263: 1254: 1253: 1238: 1229: 1228: 1202: 1193: 1187: 1186: 1162: 1156: 1155: 1131: 1125: 1112: 1106: 1100: 1094: 1089: 1083: 1079: 1073: 1068: 1062: 1059: 1050: 1045: 1039: 1034: 839:software testing 573:/Booz & Co. 543: 521: 519: 518: 493: 491: 490: 465: 463: 462: 437: 435: 434: 401: 399: 398: 375: 373: 372: 343: 341: 340: 312: 310: 309: 284: 282: 281: 255: 253: 252: 226: 224: 223: 192: 16: 1444: 1443: 1439: 1438: 1437: 1435: 1434: 1433: 1409:Duke University 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974:Globalization 972: 970: 967: 965: 962: 960: 957: 956: 952: 950: 948: 947: 942: 941: 936: 935: 930: 926: 922: 918: 914: 906: 904: 901: 896: 890: 888: 885: 880: 876: 872: 868: 865: 863: 855: 853: 851: 846: 844: 840: 835: 833: 830:and standard 829: 825: 821: 817: 813: 809: 801: 799: 796: 792: 787: 784: 781: 777: 775: 770: 766: 759: 757: 755: 751: 747: 743: 739: 735: 731: 727: 723: 719: 708: 705: 703: 700: 699: 693: 690: 687: 686: 680: 677: 674: 673: 667: 664: 661: 658:, 6th Sense, 657: 654: 653: 647: 644: 641: 640: 634: 631: 628: 627: 621: 618: 615: 614: 608: 605: 603: 600: 599: 593: 590: 588: 585: 584: 578: 575: 572: 569: 568: 562: 559: 556: 555: 546:Organization 544: 538: 531: 526: 524: 513: 511: 508: 507: 503: 498: 496: 485: 483: 480: 479: 475: 470: 468: 457: 455: 452: 451: 447: 442: 440: 429: 426: 422: 419: 418: 415: 411: 406: 404: 393: 390: 389: 385: 380: 378: 367: 365: 361: 358: 357: 353: 348: 346: 335: 333: 330: 329: 326: 325:Henk Volberda 322: 317: 315: 304: 302: 299: 298: 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913:management 740:at Manoa, 682:Since 2007 623:Since 2007 610:Since 2007 595:Since 2007 53:Duke CIBER 900:resources 439:Australia 149:(CIBER). 1332:369-382. 1225:56210528 1082:685-693. 953:See also 198:Country 154:sourcing 84:Features 73:Website: 35:Founder: 1250:1753212 660:Genpact 656:NASSCOM 403:Germany 345:Belgium 286:Denmark 1248:  1223:  943:, and 923:, the 580:2006-7 564:2004-5 552:Years 520:  492:  467:France 464:  436:  412:Prof. 400:  374:  342:  323:Prof. 311:  283:  254:  225:  43:, USA) 1221:S2CID 1201:(PDF) 702:Wipro 523:Japan 377:Spain 1246:SSRN 915:and 793:and 710:2009 695:2008 669:2007 649:2007 636:2007 528:2010 500:2010 472:2010 444:2008 408:2006 382:2006 350:2006 319:2006 291:2006 262:2005 164:). 122:The 29:2004 1213:doi 1179:doi 1148:doi 1405:: 1258:^ 1233:^ 1219:. 1209:27 1207:. 1203:. 1175:53 1173:. 1169:. 1142:. 1138:. 1118:. 1054:^ 949:. 937:, 931:, 834:. 822:, 818:, 814:, 776:. 752:, 748:, 744:, 736:, 732:, 728:, 724:, 720:, 362:, 212:, 176:, 145:, 141:, 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Index

Duke University
Fuqua School of Business
offshoring.fuqua.duke.edu
globalizing
global sourcing
Duke University
The Fuqua School of Business
Center for International Business Education and Research
sourcing
shared services
offshore outsourcing
Duke University
The Fuqua School of Business
Duke University
The Fuqua School of Business
United States
University of Manchester
United Kingdom
Copenhagen Business School
Denmark
Rotterdam School of Management, Erasmus University
Netherlands
Henk Volberda
Solvay Brussels School of Economics and Management
Belgium
University of Navarra
IESE Business School
Spain
Germany
Thomas Hutzschenreuter

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