The use of expatriates in the offshoring of services - Framework and research propositions

This paper studies the propensity of using expatriates as one type of international transfer assignees in the context of service offshoring operations. It proposes a theoretical framework that explains the choice of using expatriates as a function of the five main characteristics of offshoring projects: the objectives pursued with offshoring - cost savings, service and process improvement, or innovation and learning -, the type of task offshored - more or less advanced -, the host country risks – the inter-firm relationship or the environmental uncertainty to the offshoring firm -, the offshore governance mode - captive or outsourcing -, and the size of the project. The framework also incorporates firm level moderating factors that are experience (with offshoring and with expatriations) and size. Research propositions provide a framework for companies and researchers to approach international transfer assignment decisions for service offshoring activities in a more systematic way.