Strategic factors enabling effective offshore relationships; a model from the vendor perspective

Abstract

Outsourcing is one of the emerging and most profitable business activities in the global market. It is with that interest this research is focused on identifying strategic factors facilitating effective offshore relationships. The research analyzed the complexities of these factors using a hybrid research methodology (mainly qualitative and use of quantitative techniques) and resulted factors are categorized into primary and supportive strategic factors. The primary factors include; professional values, strategic drives, supply & delivery management, service marketing capabilities, valuecreation approaches, innovation management, client segmentation & alignment, personal relationships, dealing with management theories, and sustainable development. The supportive factors are; business nature, planning & control, knowledge management, CSF offshore effectiveness, team PEST factors, risk awareness, management, governance, awareness, and Sri Lankan offer/branding. These factors are then used to craft an effective offshore relationship model while introducing Offshore Relationship Index followed by 3-Step policy undertaking process to support strategic offshore relationship management.