Global Sourcing of Services: Risk, Process, and Collaborative Architecture

The global sourcing of services offers high returns but is also associated with high risks. The extent to which firms engage in ‘transformational’ global sourcing (i.e., global sourcing implying considerable changes in the home organization) chiefly depends on management's comfort zone which, in turn, is determined by managers' risk perceptions, risk tolerance, and ability to employ risk‐reducing measures. Many firms move into transformational...