Modeling the Motivations for Offshore Outsourcing: A Theoretical Approach

Offshore outsourcing by organizations has been gaining momentum, powered by advances in information technology and costs differentials. A review of the literature on the subject, though, shows that those scholars who have focused on offshore outsourcing have centered their attention on the activitie...

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Bibliographic Details
Authors: Nieves-Rodriguez, Elsa, Palacios-Chacon, Lorena A., Pérez Rivera, Myra Mabel, Quiñones-Cintrón, Victor
Format: article
Status:Published version
Publication Date:2018
Country:Colombia
Institution:Universidad Nacional de Colombia
Repository:Repositorio UN
Language:Spanish
OAI Identifier:oai:repositorio.unal.edu.co:unal/65776
Online Access:https://repositorio.unal.edu.co/handle/unal/65776
http://bdigital.unal.edu.co/66799/
Access Level:Open access
Keyword:3 Ciencias sociales / Social sciences
tercerización en el extranjero
motivaciones
PYMES
empresas multinacionales
no exterior
motivações
PME
empresas multinacionais.
Offshore outsourcing
motivations
SMEs
mnes
Description
Summary:Offshore outsourcing by organizations has been gaining momentum, powered by advances in information technology and costs differentials. A review of the literature on the subject, though, shows that those scholars who have focused on offshore outsourcing have centered their attention on the activities of multinational enterprises (MNEs) in the manufacturing and services sectors, leaving behind small and medium enterprises (SMEs). Through a number of propositions, this paper suggests that SMEs could also benefit from offshore outsourcing given their particular characteristics and needs. The paper also discusses the similarities and differences in the motivations that SMEs might have in subcontracting their activities outside their boundaries in comparison to MNEs. Knowing this information is important for foreign suppliers in order to adapt and expand their offerings to the needs of these particular firms.