Onshore to Near-Shore Outsourcing Transitions: Unpacking Tensions

TL;DR

This paper investigates the complex tensions between incoming and outgoing vendors in near-shore outsourcing, emphasizing the need for continuous management of relationships in multi-sourcing environments.

Contribution

It provides empirical insights into vendor tensions in near-shore outsourcing through a longitudinal case study of the 'Novopay' project.

Findings

Vendor tensions stem from resource competition and dependency.

Collaboration and reliance on shared systems create ongoing challenges.

Client strategies influence tension dynamics.

Abstract

This study is directed towards highlighting tensions of incoming and outgoing vendors during outsourcing in a near-shore context. Incoming-and-outgoing of vendors generate a complex form of relationship in which the participating organizations cooperate and compete simultaneously. It is of great importance to develop knowledge about this kind of relationship typically in the current GSE-related multi-sourcing environment. We carried out a longitudinal case study and utilized data from the 'Novopay' project, which is available in the public domain. This project involved an outgoing New Zealand based vendor and incoming Australian based vendor. The results show that the demand for the same human resources, dependency upon cooperation and collaboration between vendors, reliance on each other system's configurations and utilizing similar strategies by the client, which worked for the previous vendor, generated a set of tensions which needed to be continuously managed throughout the project.