African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

Offshore outsourcing in large companies: Motivations and risks perceived

João Varajão1,2*, Maria Manuela Cruz-Cunha3,5, Maria da Glória Fraga1 and Luis Amaral2,4
1Department of Engineering, University of Trás-os-Montes e Alto Douro, Quinta de Prados – Apartado 1013, 5001-801 Vila Real, Portugal. 2Centro ALGORITMI, School of Engineering – University of Minho, Guimaraes, Portugal. 3Polytechnic Institute of Cávado e Ave, School of Technology, Campus do IPCA, 4750-810 Vila Frescaínha, Barcelos, Portugal. 4Department of Information Systems, School of Engineering, University of Minho, Campus de Azurém, 4800-058 Guimaraes, Portugal. 5CITEPE Research Centre, University of Minho, Portugal.
Email: [email protected]

  •  Accepted: 27 October 2011
  •  Published: 12 September 2012

Abstract

When companies opt for information systems (IS) outsourcing, within the set of contracted services, they can contract their entire service needs to onshore suppliers or to offshore companies, or part of these services can be contracted to onshore suppliers and the other part to offshore suppliers. The offshore outsourcing reveals itself nowadays as an important strategic option to IS management optimization. This paper presents and discusses the main results of a survey that was carried out in Portugal to determine several aspects of offshore practice in large companies. It allowed the identification of the services more frequently contracted, the most common motivations for choosing offshore suppliers and the main risks perceived by companies. This research contributes to a better understanding of the IS offshore market, enabling client companies and vendors to improve their strategic business action.
 
Key words: Outsourcing, offshore, information systems, Portugal.