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Offshore Outsourcing of Information Technology Enabled Supply Chain Functions: A Transaction Cost Analysis

Title:Offshore Outsourcing of Information Technology Enabled Supply Chain Functions: A Transaction Cost Analysis
Authors:Bouchaib Bahli and Suresh Kumar Goyal
Publication:International Journal of Logistics Systems and Management / Inderscience Enterprises Ltd
Enumeration:Vol. 1, No. 4 pp. 366 - 381, Year 2005
Abstract:A shortage of domestic skilled information technology professionals and the availability of talent at a fraction of cost in countries like India and China, more and more companies are going global when it comes to outsourcing IT-enabled supply chain activities. Making a decision about whether or not to move these activities offshore is a decision of far-reaching consequences. In this paper, we address this issue from a transaction economic perspective. Transaction costs theory is used as a framework of analysis to examine offshore sourcing decisions. The paper discusses some of the practical and research implications of these results.

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