Distance Advantages in IS Nearshoring: Do They Matter?

TitelDistance Advantages in IS Nearshoring: Do They Matter?
MedientypConference Paper
Jahr d. Veröffentlichung2011
AutorenMarkov, R., Wiener, M. & Amberg, M.
KonferenzAmericas Conference on Information Systems (AMCIS)
PublisherProceedings of the 17th Americas Conference on Information Systems (AMCIS)
KonferenzortDetroit/Michigan, USA

This paper reviews and extends previous literature on information systems offshoring by providing a critical analysis of the advantages of shorter client-supplier distance in nearshoring projects (as compared to farshoring ones). Prior research indicated that nearshoring brings forth a number of critical distance advantages, e.g. real-time overlaps, cultural similarities, linguistic connections, as well as political/economical similarities, and that firms increasingly consider nearshoring as part of their sourcing strategies in order to benefit from the relative proximity of nearshore suppliers. The conceptual paper at hand develops six propositions challenging this simplified perspective by presenting emerging arguments which downplay frequently mentioned advantages resulting from proximity. Our results suggest that the advantages of nearshoring over farshoring in practice may not be as significant as previously assumed due to a number of factors including small size and availability of nearshore labor force, limited nearshore supplier experience, and increasing international awareness.