ABSTRACT

Global companies have been running Offshore Centers for many years. However, the role of the Offshore Centers has been mostly limited to handling engineering functions of executing projects. Most of the strategic functions of companies are still being performed by the head office (HO). The chapter describes the need for involving the Offshore Center head and senior management in the company's strategic decision making. It then explores various ways in which this involvement of the Offshore Center in strategic functions can add significant value to the company, by conceiving new products to be developed to increase company's revenues, by winning high-revenue-generating services business in new technology and business domains, and by allowing the Offshore Center team to grow to a large size through strategic acquisitions, leading to much higher revenues and cost savings for the company. The role of the Offshore Center head and the senior management in a company's strategic decision making is generally limited.