The concept of outsourcing or ‘offshoring’ has become a major topic of debate in countries including Australia, the UK and the USA. The outsourcing debate has permeated political discussions, regarding the export of highly skilled ‘home country’ jobs to cheaper regions versus an increase in skill and knowledge levels in developing markets. This debate has been particularly evident in relation to the export of information technology and call centre operations, to countries such as India, Mexico and China. Many commentators and academics assume that such moves represent a fait á compli, due to significant labour cost advantages and access to skilled labour and infrastructure in a global economy. However, there are a variety of hidden costs associated with the process of outsourcing. In addition to these hidden costs, organisational stakeholders such as shareholders, governments and unions can play an influential role in decisions to outsource. In fact, recent high profile cases in Australia and the US illustrate not only the importance of involving stakeholders in decisions to outsource, but also their ability to influence decisions to reverse or reject the offshoring route. This paper utilises stakeholder theory as a framework to explore the role and influence of stakeholders in organisational decisions to outsource.
Brad Nash, Peter Holland & Amanda Pyman
Monash University, VIC
Brad Nash, Peter Holland & Amanda Pyman
Monash University, VIC
