Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Factors Influencing Entry of Ites Firms into High Value Services


Affiliations
1 International Management Institute B 10, Qutub Institutioanl Area, Tara Crescent, New Delhi 110016
2 Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur 721302, West Bengal
     

   Subscribe/Renew Journal


Developed countries were facing the shortage of skilled manpower, and services were available in higher wages. They started outsourcing services from developing countries as a part of their competitive firm strategy. Growth of the offshore outsourcing industry in India is impressive and companies are providing both low-value and high-value services. It is projected that a big share of the estimated growth in the demand of high-value services will be outsourced from India in the near future. In this context, the present study attempts to identify factors important for Information Technology Enabled Service (ITES) provider firms' entry into high-value services. The important factors for entry found are 'employees', financial performance of the firms measured by 'return on capital employed', 'return on sales' (ROS), and location of the firms.

Keywords

Offshore Outsourcing, Ites, Bpo, Kpo
User
Notifications

  • Abell, D. (1978), Strategic Windows, Journal of Marketing, 42: 21–26.

  • Arora, A., Gambardella, A. and Torrisi, S. (2004), In the Footsteps of the Silicon Valley? Indian and Irish Software in the International Division of Labor, in Bresnahan, T. and Gambardella, A. (Eds), Building High-tech Clusters, Cambridge University Press, UK.

  • Baily, M. and Chakrabarti, A. (1988), Electronics and White-collar Productivity, in Innovation and the Productivity Crisis, Chapter 5, Brookings, Washington, USA.

  • Bain, J. S. (1956), Barriers to New Competition, Harvard University Press, Cambridge, MA.

  • Barney, J. (1991), Firm Resources and Sustained Competitive Advantage, Journal of Management, 17: 99–120.

  • Barton, S. and Gordon, P. (1988), Corporate Strategy and Capital Structure, Strategic Management Journal, 9: 623–632.

  • Basant, R. (2005), Bangalore Cluster : Evolution, Growth, and Challenges, Working Paper 2006-05-02 at IIM Ahmedabad.

  • Bowman, E. (1982), Risk Seeking by Troubled Firms, Sloan Management Review, 23: 33–42.

  • Brittain, J. and Freeman, J. (1980), Organizational Proliferation and Density Dependents Election, in Kimberly, J. and Miles, R. (Eds), The Organization Life Cycle, pp. 291–338, Jossey-Bass, San Francisco, CA.

  • Bromiley, P. (1991), Testing a Causal Model of Corporate Risk Taking and Performance, Academy Management Journal, 34: 37–59.

  • Brynjolfsson, E. (1993), The Productivity Paradox of Information Technology: Review and Assessment, Communications of the ACM, 36(12): 67–77.

  • Cotterill, R. W. and Haller, L. E. (1992), Barrier and Queue Effects: A Study of Leading US Super Market Chain Entry Patterns, The Journal of Industrial Economics, 40(4): 427–440.

  • Cooper, A. and Smith, C. (1992), How Established Firms Respond to Threatening Technologies, Academy of Management Executive, 6(2): 55–70.

  • Currie, W. L., Michell, V. and Abanishe, O. (2008), Knowledge Process Outsourcing in Financial Services: The Vendor Perspective, European Management Journal, 26(2): 94–104.

  • Day, G. (1986), Analysis of Strategic Marketing Decisions, West Publishing, St Paul, MN.

  • Evalueserve (2009), Captives in India: Is Honeymoon Over. Available at http://www.ssonetwork.com/uploadedFiles/Articles/2009/November/Evalueserve.

  • Evalueserve (2010), High Value Services Industry Growth Impacted by Great Recession. Available at http://www.google.co.in/search?q=Evalueserve+(2010)+revenue+from+high-value services+US 4+17+billion+by+2011&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official.

  • Finney, D. J. (1952), Probit Analysis, Cambridge University Press, Cambridge, England.

  • Grant, R. B. (1991), A Resource-based Theory of Competitive Advantage: Implications for Strategy Formulation, California Management Review, 33(3): 114–135.

  • Gujrati, D. N. and Sangeetha (2011), Basic Econometrics, (4th Edn), Tata McGraw Hill Education Private Limited, New Delhi.

  • Haar, J. (1989), A Comparative Analysis of the Profitability Performance of the Largest US, European and Japanese Multinational Enterprises, Management International Review, 29(3): 5–18.

  • Hawawini, G., Subramanian, V. and Verdin, P. (2003), Is Performance Driven by Industry or Firm-specific Factors? A New Look at the Evidence, Strategic Management Journal, 24: 1-16.

  • Helfat, C. E. and Peteraf, M. A. (2003), The Dynamic Resource-based View: Capability Lifecycles, Strategic Management Journal, 24(10): 997–1010.

  • Hillman, A. J. and Keim, G. D. (2001), Shareholder Value, Stakeholder Management, and Social Issues: What’s the Bottom Line? Strategic Management Journal, 22(2): 125–139.

  • Jayaraman, N., Khorana, A., Nelling, E., and Covin J. (2000), CEO Founder Status and Firm Financial Performance, Strategic Management Journal, 21(12): 1215–1224.

  • Kerin, R. A., Varadarajan, P. A. and Peterson, R. A. (1992), First-mover Advantages: A Synthesis, Conceptual Framework, and Research Propositions, Journal of Marketing, 56: 33–53.

  • Lieberman, M. B. and Montgomery, D. B. (1988), First-mover Advantages, Strategic Management Journal, 9: 41–58.

  • Mansfield, E. (1986), Patents and Innovation: An Empirical Study, Management Science, 32(2): 173–181.

  • Mitchell, W. (1989), Whether and When? Probability and Timing of Incumbents’ Entry into Emerging Industrial Subfields, Administrative Science Quarterly, 34: 208–230.

  • Murphy, G. B., Trailer, J. W. and Hill, R. C. (1996), Measuring Performance in Entrepreneurship Research, Journal of Business Research, 36(1): 15–23.

  • Rajeevan, M., Subramanian, M., Beligre, P. and Williams, T. (2007), Captives in India: A Research Study, Evalueserve. Available at http://globalsourcing.infosys.com/white-papers/captives-research-v2.pdf.

  • Schoenecker, T. S. and Cooper, A. C. (1998), The Role of Firm Resources and Organizational Attributes in Determining Entry Timing: A Cross-industry Study, Strategic Management Journal, 19(1): 1127–1143.

  • Schumpeter, J. (1950), Capitalism, Socialism and Democracy, Princeton Press, Princeton, NJ.

  • Sen, F. and Shiel, M. (2006), From Business Process Outsourcing (BPO) to Knowledge Process Outsourcing (KPO): Some Issues, Human Systems Management, 25(2): 145–155.

  • Sinha, R. K. and Noble, C. H. (1997), The Performance Consequences of Subfield Entry, Strategic Management Journal, 18(6):465–481.


Abstract Views: 372

PDF Views: 1




  • Factors Influencing Entry of Ites Firms into High Value Services

Abstract Views: 372  |  PDF Views: 1

Authors

Soni Agrawal
International Management Institute B 10, Qutub Institutioanl Area, Tara Crescent, New Delhi 110016
Kishor Goswami
Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur 721302, West Bengal
Bani Chatterjee
Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur 721302, West Bengal

Abstract


Developed countries were facing the shortage of skilled manpower, and services were available in higher wages. They started outsourcing services from developing countries as a part of their competitive firm strategy. Growth of the offshore outsourcing industry in India is impressive and companies are providing both low-value and high-value services. It is projected that a big share of the estimated growth in the demand of high-value services will be outsourced from India in the near future. In this context, the present study attempts to identify factors important for Information Technology Enabled Service (ITES) provider firms' entry into high-value services. The important factors for entry found are 'employees', financial performance of the firms measured by 'return on capital employed', 'return on sales' (ROS), and location of the firms.

Keywords


Offshore Outsourcing, Ites, Bpo, Kpo

References