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Global Sourcing: Shifting the Focus from Cost Saving to a Strategic Set-up

Published on Jan 1, 2012
· DOI :10.1007/978-3-642-29181-4_4
Klaus-Dieter Gronwald1
Estimated H-index: 1
(Mahindra Satyam)
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Abstract
The common understanding of global sourcing as a procurement centric task of companies to resolve shortage of talents in the context of established offshoring and outsourcing models will be reviewed for product sourcing and service sourcing separately. Understanding offshoring as a location-specific delivery model and outsourcing, on the other hand, having significant impact on the governance, delivery system and the companies’ organisation (onsite or offshore), global sourcing is seen as a combination of both. Discussing various offshoring and outsourcing failures at the beginning of the twenty-first century has impact on future global sourcing strategies. As a result, we will introduce the concept of “outsourcing of global sourcing” as part of a service provider’s delivery model. Indian service providers have developed a unique system of education, processes and tool-based delivery systems which are mostly standardised across the industry. High attrition in the industry requires a focus on knowledge retention rather than people retention. This attrition and rotation of highly skilled and experienced talents enables small start-ups now to inherit the principles and processes of the big ones and implement global sourcing as business model for SMEs worldwide. This gives once again India a competitive advantage in the professional services market.
  • References (6)
  • Citations (1)
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References6
Newest
Published on Dec 1, 2010in Journal of Management Studies 5.84
Farok J. Contractor27
Estimated H-index: 27
(RU: Rutgers University),
Vikas Kumar29
Estimated H-index: 29
(USYD: University of Sydney)
+ 1 AuthorsTorben Pedersen45
Estimated H-index: 45
(CBS: Copenhagen Business School)
In the largest sense, global strategy amounts to (1) the optimal disaggregation or slicing of the firm's value chain into as many constituent pieces as organizationally and economically feasible, followed by (2) decisions as how each slice should be allocated geographically (‘offshoring’) and organizationally (‘outsourcing’). Offshoring and outsourcing are treated as strategies that need to be simultaneously analysed, where just ‘core’ segments of the value chain are retained in-house, while oth...
Published on Jan 1, 2009
Sébastien Miroudot14
Estimated H-index: 14
(OECD: Organisation for Economic Co-operation and Development),
Rainer Lanz6
Estimated H-index: 6
(OECD: Organisation for Economic Co-operation and Development),
Alexandros Ragoussis5
Estimated H-index: 5
(OECD: Organisation for Economic Co-operation and Development)
This study analyses trade flows in intermediate goods and services among OECD countries and with their main trading partners. Combining trade data and input-output tables, bilateral trade in intermediate goods and services is estimated according to the industry of origin and the using industry for the period 1995-2005. Trade in intermediate inputs takes place mostly among developed countries and represents respectively 56% and 73% of overall trade flows in goods and services. Gravity regressions...
Published on Aug 1, 2008in Academy of Management Perspectives 3.86
Manning Stephan1
Estimated H-index: 1
(Duke University),
Massini Silvia1
Estimated H-index: 1
(University of Manchester),
Y Lewin Arie1
Estimated H-index: 1
(Duke University)
The seemingly unlimited availability of science and engineering (S&E) talent in emerging economies and the increasing difficulties of finding such talent in advanced economies have given rise to a new trend: the global sourcing of S&E talent. This paper examines the antecedents and dynamics of this trend. In particular, it examines the coevolution of macroeconomic forces, domestic and offshore national policies, industry dynamics, and firm-level offshoring capabilities driving today's offshoring...
Published on Jun 22, 2008in Harvard international review
Simon Zadek1
Estimated H-index: 1
,
Alex Mcgillivray1
Estimated H-index: 1
The need for a more responsible basis on which businesses and economies compete in international markets has never been greater. Global corporations with global strategies contribute to rising inequality and falling economic opportunities for lower-income communities across the developed world. Low wages and poor working conditions are sources of international competitiveness for businesses from Dhaka to Johannesburg, and weak environmental regulatory enforcement continues to deliver profitable ...
Published on Jun 1, 2008in Management Information Systems Quarterly 4.37
Pär J. Ågerfalk24
Estimated H-index: 24
(Uppsala University),
Brian Fitzgerald41
Estimated H-index: 41
(UL: University of Limerick)
This paper presents a psychological contract perspective on the use of the open source development model as a global sourcing strategy-opensourcing, as we term it here-whereby commercial companies and open source communities collaborate on development of software of commercial interest to the company. Building on previous research on information systems outsourcing, a theoretical framework for exploring the opensourcing phenomenon is derived. The first phase of the research concerned qualitative...
Published on Jan 1, 2004
Gordon B. Davis28
Estimated H-index: 28
,
Phillip Ein-Dor1
Estimated H-index: 1
(UMN: University of Minnesota)
+ 1 AuthorsGholamreza Torkzadeh1
Estimated H-index: 1
(University of Pittsburgh)
Offshore provision of information systems/information technology-related services has been growing rapidly in recent years and seems firmly set to continue. This trend is fueled by the many advantages of offshore service procurement; however, there are dangers in this practice. Furthermore, offshoring requires adaptation of the IS function and IS management. This in turn suggests modifications of IS curricula in order to prepare graduates for the new environment. The advantages of offshoring are...
Cited By1
Newest
Published on Jan 1, 2017
Klaus-Dieter Gronwald1
Estimated H-index: 1
(NU: Northwestern University)
The global sourcing initiative introduces global sourcing principles, global sourcing strategies, delivery models and client vendor partnerships. The final vendor selection process includes discussions of engagement roadmaps, organizational readiness and process models, completed by decisions for a vendor and for global sourcing priorities.