Performance of Firms: A Study of Offshore Outsource Service Providers

Abstract

With the evolution of information technology, firms offshore outsource services to developing and low service cost countries to have cost as well competitive advantages. This is a growing practice, but there has been limited empirical attention in understanding the outsourcing phenomenon, particularly from the perspective of service provider firms that execute important business processes for their overseas clients. This shows the need to study the factors that play a significant role in the growing trend to outsource and why only a few service provider firms report success. In this chapter, the authors try to find factors that influence performance of service provider firms. Multiple regressions using four indicators of firm performance are carried out to see the influence of certain factors on Information Technology Enabled Service (ITES) firms’ performance.