Navigating Competition in IT Offshoring Relationships

The increased IT offshoring presents many benefits as well as challenges to today\u27s organizations. One major challenge is the competition between individuals and sites in offshoring relationships for job security, challenging projects, status and resources. The competition in offshoring relationships is complex and dynamic. Unmanaged or inappropriately managed competition seriously undermines IT offshoring efforts. However, very little research has been conducted in this important area. This paper analyzes the different drivers and strategies of offshoring, investigates into the reasons and affects of competition in different phases of offshoring and proposes a three-stage model on the evolution of the competition. At each stage the competition varies in intensity, focus and consequences. This model provides for managers a systematic means to analyze the state of competition in their offshoring relationships and also guidelines on coping with the competition