Good economics or bad context: attaining a balanced perspective on present practices, historical development, and the legacy of outsourcing in the context of globalization
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2014-08
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University of Hawaii at Manoa
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Outsourcing is a growing industry that is used in both the private and public sectors, from banking to pharmaceuticals, insurance to energy, retail to software, and social security to entertainment. It is an industry that has drawn argument from both sides in economically developed and developing countries. Supporters believe it is necessary and good for global economic development for everyone, whereas opponents in developed economies point out the shipping of jobs from their countries. Some in developing economies consider it an extension of colonization despite the short-term economic benefits to their economies. In three essays, this research examines outsourcing in its historical context in India, its development across three industries over decades, and the management practices in outsourced organizations through strategies such as National Identity Management (NIM). Outsourcing came into existence along with the first major multinational company of the world, the East India Company. Essay one examines how outsourcing is embedded in the context of power imbalance, unequal status, and the legacy of colonization that affects outsourcing today in India. Essay one shows that the context in which firms operate is important and that it is shaped significantly by history. In essay two, the development of outsourcing is examined in three industries: advertising, the semiconductor industry, and business process outsourcing (BPO). Using comparative historical analysis and path dependence method, common and unique factors across each industry are identified. This allows a nuanced understanding of the outsourcing industry that has been missing from the scholarly literature. Essay three uses the existing knowledge of trust in e-commerce and inter-personal deception theory. It also examines the effects of the location of call centers, the context of interaction, the type of call center, and the practice of NIM on the trusting belief and trusting intentions of customers in a call center. It was found that the trusting beliefs and intentions are lower in international call centers, but even lower when firms practice NIM. It appears that a more honest, subtle, and customized approach towards customers can do better at earning their trust than engaging in practices like NIM to earn customer trust.
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business process outsourcing
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Theses for the degree of Doctor of Philosophy (University of Hawaii at Manoa). International Management.
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