Global sourcing of business processes: history, effects, and future trends

Manning, Stephan, Larsen, Marcus M and Kannothra, Chacko G (2018) Global sourcing of business processes: history, effects, and future trends. In: Clark, Gordon L, Feldman, Maryann P, Gertler, Meric S and Wojcik, Dariusz (eds.) The new Oxford handbook of economic geography. Oxford Handbooks Online . Oxford University Press, Oxford, pp. 407-426. ISBN 9780198755609

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We review key drivers, trends and consequences of global sourcing of business processes – the sourcing of administrative and more knowledge-intensive processes from globally dispersed locations. We argue that global sourcing, which is also associated with ‘offshoring’ and ‘offshore outsourcing’, has co-evolved over the past three decades with the advancement of information and communication technology (ICT), a growing pool of low-cost, yet often qualified labor and expertise in developing countries, and increasing client-side global sourcing experience. We show how this dynamic has led firms to develop new global capabilities, governance and business models, changed the geographic distribution of work and expertise, and promoted the emergence of new geographic knowledge services clusters. We further introduce three new trends – the emergence of global delivery models, ICT- enabled service automation, and impact sourcing – and discuss future directions for research.

Item Type: Book Section
Keywords: Outsourcing, Offshoring, Business processes, Geographic clusters, New business models, Information and communication technology
Schools and Departments: University of Sussex Business School > Strategy and Marketing
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: Stephan Manning
Date Deposited: 03 Oct 2019 13:09
Last Modified: 11 Jan 2020 02:00

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