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    Applying international business constructs to offshore development

    Gannon, Brian and Wilson, David (2008) Applying international business constructs to offshore development. In: Global Sourcing Workshop, 10-13 Mar 2008, Val d'Isere, France.

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    Abstract

    Although globalisation and international business have long been subjects of research, there is relatively little research on the practice of global IS development within these disciplines. This paper applies two widely cited constructs associated with international business theory – cultural distance and knowledge transfer – to instances of offshore IS development in the financial services industry in the UK to assess their applicability to the phenomenon of IS offshoring. This study aims to broaden the understanding of social and organisational aspects of global sourcing of information systems and forms part of an ongoing interpretive research programme. Initial results indicate that knowledge transfer and cultural distance are particularly relevant to IS offshoring and can be used to increase our understanding of the challenges associated with this phenomenon. The interpretation of cultural distance as cultural ‘friction’ provides particular insights.

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