Global delivery models: The role of talent, speed and time zones in the global outsourcing industry

Stephan Manning, Marcus M Larsen and Pratyush Bharati
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Stephan Manning: College of Management, University of Massachusetts Boston, Boston, USA
Marcus M Larsen: Department of Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark
Pratyush Bharati: College of Management, University of Massachusetts Boston, Boston, USA

Journal of International Business Studies, 2015, vol. 46, issue 7, 850-877

Abstract: Global delivery models (GDMs) are transforming the global IT and business process outsourcing industry. GDMs are a new form of client-specific investment promoting service integration with clients by combining client proximity with time-zone spread for 24/7 service operations. We investigate antecedents and contingencies of setting up GDM structures. Based on comprehensive data we show that providers are likely to establish GDM location configurations when clients value access to globally distributed talent and speed of service delivery, in particular when services are highly commoditized. Findings imply that coordination across time zones increasingly affects international operations in business-to-business and born-global industries.

Date: 2015
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