ABSTRACT
Offshore outsourcing of IT work has generated quite a controversy, with some saying it is stealing US jobs, others stating that it is improving the US economy, and still others claiming that all the studies are biased, one way or the other. Based on thirteen case studies, generated a four-stage model of offshore outsourcing: offshore bystander, offshore experimenter, proactive cost focus, and pro-active strategic focus. The chapter provides lessons on evolving an offshore relationship from proactive cost focus to strategic cosourcing. Chief Information Officer (CIOs) will continue to 'best source', using a mix of in-house IT staff, domestic contractors, domestic suppliers, near-shore suppliers, co-sourcing with strategic partners, and offshore suppliers. The chapter next describes 'Biotech's' offshoring journey. Biotech is a Fortune 500 company and a leading provider of biotechnology-based products. At US headquarters, Biotech employs 600 IT personnel and augments this staff with nearly 200 domestic contractors.
