“You Feel The Threat From Asia”. Onshore Experiences of IT Offshoring To India

Abstract

This article investigates the experiences of employees and managers in Swedish companies

Unintended signals: Why companies with a history of offshoring have to pay wage penalties for new hires

“…While widely pursued as a an effective strategy for reducing labor costs (Manning, 2014), the extant research suggests that many firms underestimate the actual costs of implementing offshoring activities in foreign locations (Larsen et al, 2013). For example, offshoring companies misjudge coordination and control costs (Dibbern et al, 2008;Srikanth & Puranam, 2011;Stringfellow et al, 2008), and cultural differences in foreign locations (Blomqvist et al, 2015). They also incorrectly estimate the cost of a successful implementation (Larsen, 2016).…”