Innovation Offshoring

Over the past years, companies have increasingly specialized and contracted activities to external partners in low-wage countries. While these offshoring contracts are considered to be quite successful in corporate reality, managers are primarily offshoring to realize factor cost advantages and thereby neglect growth opportunities. Why are current offshoring activities focused on efficiency? Could offshoring be also employed as a growth instrument? If yes, how should these projects be prepared, structured and executed? In addition to classifying the current understanding of the offshoring phenomenon, Simon Plankenhorn examines potential offshoring opportunities for innovation projects – from a conceptual and an empirical perspective. Leading European sponsors in five industries were questioned and confirmed the majority of hypotheses, while two case studies in the Indian clinical trial industry revealed surprising insights into growth oriented offshoring.