From Captive Centers to Global Integration: Organizational Models and Good Practices in Information Technology Nearshoring and Offshoring

Markus Westner, Matthias Reicheneder and Markus Matschi
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Markus Westner: OTH Regensburg, Germany
Matthias Reicheneder: OTH Regensburg, Germany
Markus Matschi: 4C Group AG, Germany

Information Resources Management Journal (IRMJ), 2025, vol. 38, issue 1, 1-25

Abstract: Contemporary developments in virtual work and global talent management are transforming information technology (IT) nearshoring and offshoring practices, yet research on organizational responses remains limited. Through expert interviews with 33 IT executives (76% chief information officers) from Germany's top 500 companies, this article examines organizational models, strategies, and good practices in IT nearshoring and offshoring. It reveals a shift from traditional captive centers toward fully integrated global teams, enabling high-value task delivery and reflecting increased workforce maturity. Companies are expanding their operations driven by talent needs rather than cost savings, with success factors including employee integration and robust on-site management. This study contributes to theory and practice by providing a framework for understanding organizational models in global IT delivery and offering actionable insights for executives, emphasizing workforce integration over geographical separation.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:igg:rmj000:v:38:y:2025:i:1:p:1-25

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