Global Sourcing of Business Processes: History, Effects, and Future Trends

Manning, S., Larsen, M.M., Kannothra, C.G. 2017. “Global Sourcing of Business Processes: History, Effects, and Future Trends”. In: Clark, G.L., Feldman, M.P., Gertler, M.S., Wojcik, D. (Eds.): The New Oxford Handbook of Economic Geography. Oxford, UK: Oxford University Press, Forthcoming

28 Pages Posted: 30 Aug 2016 Last revised: 25 Oct 2016

See all articles by Stephan Manning

Stephan Manning

University of Sussex Business School

Marcus M. Larsen

Copenhagen Business School - Department of Strategic Management and Globalization

Chacko Kannothra

CSU Dominguez Hills

Date Written: August 26, 2016

Abstract

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.

Keywords: Outsourcing, offshoring, business processes, geographic clusters, new business models, information and communication technology

JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L84, O14, R11, P45, P48, F59, F21, F22, F23

Suggested Citation

Manning, Stephan and Larsen, Marcus M. and Kannothra, Chacko, Global Sourcing of Business Processes: History, Effects, and Future Trends (August 26, 2016). Manning, S., Larsen, M.M., Kannothra, C.G. 2017. “Global Sourcing of Business Processes: History, Effects, and Future Trends”. In: Clark, G.L., Feldman, M.P., Gertler, M.S., Wojcik, D. (Eds.): The New Oxford Handbook of Economic Geography. Oxford, UK: Oxford University Press, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2830650

Stephan Manning (Contact Author)

University of Sussex Business School ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

Marcus M. Larsen

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark

Chacko Kannothra

CSU Dominguez Hills ( email )

1000 E. Victoria Street
Carson, CA 90747
United States
3102433446 (Phone)
90747 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
270
Abstract Views
1,505
Rank
206,007
PlumX Metrics