Performance of Firms: A Study of Offshore Outsource Service Providers

Performance of Firms: A Study of Offshore Outsource Service Providers

Soni Agrawal (Indian Institute of Technology, Kharagpyr, India), Kishor Goswami (Indian Institute of Technology, Kharagpyr, India) and Bani Chatterjee (Indian Institute of Technology, Kharagpyr, India)
Copyright: © 2014 |Pages: 23
DOI: 10.4018/978-1-4666-4506-6.ch017


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.
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Factors Influencing Performance Of Firms

Review of studies from the perspective of service receiver firms show that performance of offshore outsourcing receiver firms depend on a variety of factors. These factors are their readiness, superior strategy, selection of suitable processes for outsourcing, sound contracts, and good relationship management (Feeny & Willcocks, 1998; Willcocks & Lacity, 2006). Client firms want the provider firm to take them into account with their special technological and business characteristics (Lacity & Hirchheim, 1993). There are other factors also that are identified important in earlier studies. Moreover, a detailed discussion of the identified factors of firms’ performance is discussed below.

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