The study presented in this thesis investigates Offshore Information Technology Outsourcing (IT offshoring) relationships from clients’ perspective. With more client companies outsourcing their IT operations offshore, issues associated with the establishment and management of IT offshoring relationships have become very important. With the growing volume of offshore outsourcing, the numbers of failures are also increasing. Therefore, both clients (service receivers) and suppliers (service providers) face increasing pressure to meet with the objectives of IT offshoring initiatives. Improving the quality of the relationship between client and supplier has frequently been suggested in the literature as probable solution area, however not much literature and empirical evidence is available in this respect. The aim of the study is to make a theoretical and practical contribution by studying the interplay between the critical factors influencing the relationship intensity level of the exchange partners and suggest measures that can potentially increase the success rate in IT offshoring engagements. The objectives of this study are: 1. To identify the relevant critical factors and explore its causes and effects (antecedents and consequences) on the relationship intensity significance level. 2. To develop an integrated conceptual framework combining the hypothetical relationship among these identified critical factors. 3. To empirically validate the conceptual framework. To accomplish the first objective and building the theoretical platform for the second objective, three research questions are identified and answered through empirical study backed by literature evidence. The second objective is addressed through an integrative conceptual framework by analysing the related studies across other disciplines, gaps in the existing theories and models in the outsourcing literature. Coupled with literature gap analysis, the researcher adopted some of the relevant features from across various disciplines of management and social sciences that are relevant to this study. After that, the third objective, the research hypotheses are validated with empirical examination conducted in Europe. Seven research hypotheses are developed based on literature analysis on the relationship of the key constructs in the conceptual framework. This study is explanatory and deductive in nature. It is underpinned mainly by a quantitative research design with structured questionnaire surveys conducted with stratified sampling of 136 client organisations in Europe. Individual client firm is the unit of analysis for this study. Data analysis was conducted using partial least squares (PLS) structural equation modelling techniques. In this research, empirical support was found for most of the research hypotheses and conclusions of the study is derived. An investigation into trust as a concept is used to denote relationship intensity, as the central construct of the framework. The validated conceptual framework and tested hypothesis results are the main contributions of this study. The results of this study will also be useful in terms of adopting the conceptual framework linked with hypotheses as a point of reference to begin with, in order to accomplish a healthy exchange relationship. However, a further deep dive and fine tuning the sub-units/composition characteristics of each critical factor may be needed for individual outsourcing initiative(s). This study is particularly relevant to the client-supplier firms already engaged in a relationship but can also be useful to those clients who are planning to begin their journey in IT offshoring in the near future, as a preparatory platform.

With the increased demand for doing more with less, public sector managers embrace outsourcing back-office functions through a shared service model; however, maintaining service quality for public sector shared service centers (SSC) in financial management during peak cycles is a challenge. Framed with the transaction cost economy theory, the purpose of this single case study was to explore strategies used by SSC managers in a public sector company to maintain service quality. Seven participants with more than 4 years of SSC experience in public-sector companies participated in phone interviews including SSC department heads, managers, and a supervisor of a public-sector company in Mississippi who implemented strategies to successfully maintain service quality in the SSC relationship. Through method triangulation, a review of service level agreements and key performance indicators supplemented open-ended semistructured interviews. The research findings included emergent themes of training and documentation, employee engagement, control and communication, efficiency and automation, and standardization and metrics. The SSC strategies in training and documentation, control and communication, and employee engagement were fundamental for maintaining service quality in SSC relationship. Study findings may help public sector SSC managers understand how to incorporate and implement successful strategies in financial management divisions to maintain service quality. Positive social change includes identifying methods to increased efficiency and service quality in a financial management division. Society could benefit from improvements in employee work-life balance, reduced turnover, and increases in the economic well-being of community residents.

The Master Thesis deals with offshoring and its logistic requirements. The first part of thesis characterizes terms as outsourcing, offshoring and offshore outsourcing. The main reasons for foreign production are seeking of resources (typically low cost labour) and expansion into new markets. Benefits and risks of offshoring are analyzed in the thesis, as well as criteria for selection of suitable host destination. Often overlooked impacts of globalization on integrated supply chain are also considered in this thesis. Central and Eastern Europe is one of important offshoring regions. CEE offers relatively cheap and qualified labour. However, its main benefit is its small geographical distance from Western Europe. The costs of servicing markets at Western Europe from CEE are much lower compared to servicing these markets from Asia.

Business leaders increasingly grapple with longer and more complex supply chain nodes wrought by the globalization of corporate manufacturing processes. The flow of outsourced materials is also more vulnerable to high-profile product-harm crises, sabotage, product defect, and recall problems. The purpose of this single case study was to explore manufacturing strategies used by business leaders of an original equipment manufacturer (OEM) in the United States to minimize the defects in offshore-outsourced products. The sample was 2 OEM business leaders who have successfully reduced the defects in offshore-manufactured products in their Michigan facility. The conceptual framework was agency theory. Data were collected from observational field notes, company records, and transcripts of open-ended interviews. Data were coded and analyzed to identify emergent themes, which included factors the OEM considered in selecting offshore suppliers, strategies for minimizing defects, validation of the effectiveness of these strategies, and the development of trust and working partnerships with offshore suppliers. Reducing defect risks from outsourced products may decrease catastrophic fatalities and financial repercussions for businesses, and simultaneously improve consumer safety and trust as implications for social change.