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
In addition, the model examines the influence of the service capabilities on the
success of the client firm. One of the key contributions of this study is the client
perspective examination of the relationship between the U.S. client firm and offshore
service provider thereby addressing a stated need for additional academic research.
Professional services, such as accounting, finance, engineering and managementconsulting, are significant contributors to the U.S. economy accounting for the largestvalue added industry within the private sector. Knowledge-intensive professionalservices reached this level of economic prominence by responding to heightenedcompetition, managing rising costs, utilizing key resources, and re-directing their focus to internal core competencies through the strategic decision to engage in offshoreoutsourcing relationships. By 2015, the Congressional Research Study report predicts 3.4million, or 13.7% of professional service jobs will be offshore outsourced. Offshoreoutsourcing is a firm level strategic decision to relocate business activities to an offshorethird party primarily to emerging markets. Based on existing theories of transaction cost economics, resource based view, and resource dependence theory, this dissertationempirically validates a comprehensive model evaluating the multi-dimensional relationalgovernance mechanism of collaboration on the capabilities of the offshore serviceproviderIn addition, the model examines the influence of the service capabilities on thesuccess of the client firm. One of the key contributions of this study is the clientperspective examination of the relationship between the U.S. client firm and offshoreservice provider thereby addressing a stated need for additional academic research.
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