Implementing global sourcing strategies and optimising offshoring capability: a longitudinal case study

Recognising the impact that globalisation has had on the sourcing of services, the purpose of this study was to understand how managers of firms implement global sourcing strategies and optimise offshoring capabilities. While significant research has been undertaken by scholars, future research needs have also been identified, including in-depth longitudinal studies in outsourcing, how outsourcing changes over time and the evolution of retained client capabilities. Research in these areas will go some way towards improving our understanding of the complex issues with which managers of firms have to deal. To support these research needs through this thesis, a longitudinal case study based within a global financial services firm was undertaken over two years, utilising a mixed methods approach that included interviews, qualitative and quantitative surveys, documentation, physical artefacts and participant observation. In addition, this research was supplemented by 16 years of secondary historical data. The result is a detailed and rich narrative describing the real issues managers experience and how they deal with them when implementing global sourcing strategies and optimising offshoring capabilities. The thesis concludes with the identification and discussion of one primary and four secondary contributions. The primary contribution is captured in the Global Services Sourcing Model, which will assist managers when implementing global sourcing strategies. The first two secondary contributions are labelled Leadership Incongruence and the Retained Organisation, and highlight the role of leadership during the implementation phase of the strategy and how this strategy may impact the organisation into the future. The third secondary insight is the Global Services Maturity Model, which will provide managers with guidance when developing the internal capabilities to support their offshoring initiatives. The final secondary contribution discusses the importance of developing a Global Mindset across the organisation to support the firm’s global sourcing strategy.