Exploring heterogeneity in preferences for offshore functions, governance modes and locations

Using survey data from the Offshoring Research Network on offshoring by firms in the United-States (US) and Europe the paper explores whether preferences for offshoring certain functions, using particular governance modes, and in specific locations vary depending on the country of origin of the company making the decision. It assesses the heterogeneity between the US and Europe as well as across European countries and concludes that intra-European heterogeneity in offshoring practices is as high as heterogeneity between US and EU as a whole. The paper also shows that differences in functions offshored explain only a limited portion of differences in governance modes and offshore locations selected.