Tracking offshoring and outsourcing strategies in global supply chains

Timo Seppälä*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

6 Citations (Scopus)


The dynamics in industrial business networks, caused by the disaggregation of firms' value and supply chains, cause product life cycle phases and tasks to be transferred from advanced market economies to emerging market economies. In this chapter, I track the linkages between changes in a lead firm's business environment and changes in the lead firm's strategic offshoring and outsourcing actions; I also track how these changes in the lead firm's behaviour are then translated into a supplier firm's strategy and offshoring decisions. Additionally, I discuss offshoring and outsourcing strategies in global value chains. The increasing level of highly skilled labour in emerging market economies enables industrial business networks to rearrange themselves along with shorter life cycles. Furthermore, I find that different firms typically react to their customers' strategies with the same approach but implement and schedule their implementation in different ways. These differences in the execution and implementation patterns of offshoring and outsourcing also differ among industries.

Original languageEnglish
Title of host publicationThe Offshoring Challenge: Strategic Design and Innovation for Tomorrow's Organization
Number of pages20
ISBN (Electronic)9781447149088
ISBN (Print)9781447149071
Publication statusPublished - 1 Jan 2013
MoE publication typeA3 Part of a book or another research book


  • Global value chains
  • Industrial business networks
  • Offshoring
  • Outsourcing


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