Professional services, such as acco

Professional services, such as accounting, finance, engineering and management
consulting, are significant contributors to the U.S. economy accounting for the largest
value added industry within the private sector. Knowledge-intensive professional
services reached this level of economic prominence by responding to heightened
competition, managing rising costs, utilizing key resources, and re-directing their focus to internal core competencies through the strategic decision to engage in offshore
outsourcing relationships. By 2015, the Congressional Research Study report predicts 3.4
million, or 13.7% of professional service jobs will be offshore outsourced. Offshore
outsourcing is a firm level strategic decision to relocate business activities to an offshore
third party primarily to emerging markets. Based on existing theories of transaction cost economics, resource based view, and resource dependence theory, this dissertation
empirically validates a comprehensive model evaluating the multi-dimensional relational
governance mechanism of collaboration on the capabilities of the offshore service
provider