Proximity Offshoring Generating Considerable Savings with No Significant Increase of Risks or Losses in Quality—Nearshoring Playing a Key Role on a Business Transformation Program

Jorge F. Guedes () and Leandro Pereira
Additional contact information
Jorge F. Guedes: ISCTE—Instituto Universitário de Lisboa
Leandro Pereira: ISCTE—Instituto Universitário de Lisboa

A chapter in Financial Environment and Business Development, 2017, pp 325-340 from Springer

Abstract: Abstract Information Technology leaders are demonstrating an increased concern on the distance dimension while considering sourcing initiatives. This suggests that, in Information Technology outsourcing activities, “distance is not dead”—actually, distance is seen as a source of challenges that can hurt the project overall health. In order to reduce these risks keeping an effective cost, proximity offshoring (nearshoring) is getting more used over the past two decades, but the academic literature on the subject is still on its beginnings. Using an Information Technology project, part of a large business transformation program that took place in Geneva (Switzerland), done by a vendor that delivered more than 2500 days in consulting as the main case study, this paper analyzes and discusses the benefits and challenges of incorporating nearshoring practices in these types of initiatives. The analysis starts by suggesting that nearshoring can add value to Information Technology projects if managed the right way—when compared to traditional services delivery (onsite consultants), nearshoring practices can have an outstanding result, with a very positive financial impact, showing considerable savings and avoiding a significant increase of risks or losses in quality, leading to an increased return on investment (ROI). Finally, some recommendations are suggested as the starting point for a framework for nearshore usage, pointing directions for further research. A similar analysis was already published by the same authors for a training project, aiming to understand if the same trends are applicable in several types of services delivered using nearshoring practices.

Keywords: Outsourcing; Nearshoring; Offshoring; Business transformation; Services (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-319-39919-5_25

Ordering information: This item can be ordered from
http://www.springer.com/9783319399195

DOI: 10.1007/978-3-319-39919-5_25

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().