Search Results (9)

Background: With global changes in markets and government regulations, most organizations, which previously opted for offshore production, began to return to their country of origin—a process called reshoring. The new strategies for locating units and business models, which involve decisions to outsource production and organizational capacity, now face a new context of Industry 4.0, a market for technologies with the potential to transform entire supply chains in addition to directly influencing organizational aspects with innovative solutions and resource efficiency. Methods: This systematic literature review (SLR) found 43 articles relating to reshoring and Industry 4.0; there was an increase in publications in the last few years. We divided the studies according to 9 aspects: market uncertainties and labor supply; support for managerial decision making; competitive priorities analysis (costs and efficiency); business strategies; information knowledge and collaboration management; political, social and economic changes; risk security and privacy management; supply chain management; and investment market and private equity funds. Results: This article presents a content analysis of articles in the field of administration, focusing on location strategies, technology adoption, and organizational changes. The study identifies key aspects such as research quality, publication trends, regional focus, and strategy topics. The findings emphasize the importance of research objectives and problem-solving for managerial decision-making and highlight the need for further exploration in the literature. Conclusions: Reshoring, Industry 4.0, and location strategies are relevant topics for global management. The supply chain plays a role in decision-making for location and technology adoption, suggesting the need for more research in supply chain management. Full article

The challenges confronting management in making decisions on offshore outsourcing have inevitably changed dramatically over the last decade. Offshore outsourcing today is characterized by a higher level of complexity and disruption brought about mainly factors of change, as: (1) the new waves of globalization; (2) the rapidly shifting conditions in the marketplace, which have made offshoring a vital part of global strategies, leading the way to new business models; (3) the increasing variety of models in the global supply chain; (4) the inroads of previous providers that have emerged as world-class competitors; and (5) the irresistible march of technological disruption. Threatening events, as terrorist attacks and wars, had disrupted the world economy since the 2000s. In these cases, supply chains were disrupted although soon restored. After these critical events, globalization was severely weakened by the arrival of the COVID-19 pandemic, on the threshold of 2020, and Russia’s invasion of Ukraine dealt a blow to global supply chains, by 2022. Due to these complexities, the trend to outsource production to other countries might increasingly push companies to transform themselves into virtual organizations. Outsourcing strategies could therefore evolve moving towards a digital era. Full article

Computation intelligence techniques are important for making decisions in an agile-based offshore software development paradigm. Offshore development faces additional challenges, such as trust, communication and coordination, and socio-cultural and knowledge transfer. There is a need to determine the rankings of challenges considering their criticality concerning practitioners working in agile-based offshore software development. This paper aims to identify and rank agile challenges in offshore software development by applying computational intelligence techniques. From the systematic literature review, we identified 30 communication and coordination challenges. The distributed agile pattern catalog consists of 15 patterns, from which eight were used to solve communication and collaboration challenges. Many researchers have used fuzzy logic to quantify their results. We further applied the fuzzy analytical technique to determine the priority order concerning the criticality of the identified agile pattern catalog. The results showed that Central Code Repository Pattern ranked the most significant for solving communication and coordination challenges. Global Scrum Board Pattern and Synchronous Communication Pattern ranked second. Full article

The rapid spread of the internet over the last two decades has prompted more and more companies to deploy their work internationally. The offshoring strategy enables organizations to cut down costs, boost shareholder value, acquire a competitive advantage, reduce cycle time, increase workforce flexibility, generate revenue and focus on their core business. The number of worldwide software development projects has increased due to globalization. Global Software Development (GSD) projects are forecast to grow by 20% to 30% in countries like India and China. The outsourcing experts choose one of the suitable models from the available global delivery options to deliver services in the global software paradigm. However, adopting the appropriate model for application maintenance is a complicated process. In addition, the right model is selected based on various influencing factors, type of the project and client requirements. Additionally, sufficient domain expertise is necessary for the decision making of offshore outsourcing. Currently, there is no dynamic and automated tool for the decision making of application maintenance offshoring. Therefore, this study presents an Offshoring Decision Support System (OffshoringDSS), an automated and novel tool to make the offshoring decisions of application maintenance. The suggested tool is based on the Analytic Hierarchy Process (AHP) technique. The tool automatically performs all the calculations involved in the decision making and ranks the sourcing models. Full article

The Middle East will face tremendous water scarcity by 2050, which can only be mitigated by large-scale reverse osmosis seawater desalination. However, the coastal land in the region is rare and costly, so outsourcing the desalination facility to artificial islands could become a realistic scenario. This study investigated the ecological and economic challenges and possible advantages of that water supply option by analysing conceptual alternatives for offshore membrane-based desalination plants of up to 600 MCM/y capacity. Key environmental impacts and mitigation strategies were identified, and a detailed economic analysis was conducted to compare the new approach to state-of-the-art. The economic analysis included calculating the cost of water production (WPC) and discussing the differences between offshore alternatives and a conventional onshore desalination plant. In addition, the study investigated the impact of a changing energy mix and potential carbon tax levels on the WPC until 2050. The results indicate that offshore desalination plants have ecological advantages compared to onshore desalination plants. Furthermore, the construction cost for the artificial islands has a much lower effect on the WPC than energy cost. In contrast, the impact of potential carbon tax levels on the WPC is significant. The specific construction cost ranges between 287 $/m² and 1507 $/m² depending on the artificial island type and distance to the shoreline, resulting in a WPC between 0.51 $/m³ and 0.59 $/m³. This work is the first to discuss the environmental and economic effects of locating large-scale seawater desalination plants on artificial islands. Full article

The phenomenon of Global Software Development (GSD) has attracted the interest of businesses all over the world. It brings together partners from various national and corporate cultures to develop applications with numerous advantages, including access to a vast labor pool, cost savings, and round the clock growth. GSD, on the other hand, is technologically and organizationally diverse and poses a number of obstacles for the development team, such as geographical distance, cultural differences, communication and language barriers. Global services are provided by selecting one of the suitable global delivery options, i.e., the onshore model, nearshore model or offshore model. Experts typically choose one of the models based on the nature of the project and the needs of the customer. However, the vendors and clients lack an adequate decision support system that can assist them in making suitable sourcing decisions. Therefore, the current study presents a Multi-Criteria Decision Making (MCDM) model for offshore outsourcing decisions of application maintenance. To achieve our target, two systematic literature reviews were conducted that explored a list of 15 influencing factors. The identified factors were further evaluated in the outsourcing industry by performing an empirical study that resulted in a list of 10 critical success factors. We propose a sourcing framework based on the critical success factors that can assist decision makers in adopting a suitable sourcing strategy for the offshore outsourcing of application maintenance. In order to further enhance the decision-making process, the MCDM model is developed based on the Analytic Hierarchy Process (AHP). The MCDM model is evaluated with three case studies in highly reputable international companies, including IBM Stockholm, Sweden, Vattenfall AB, Stockholm, Sweden and a London based company in the United Kingdom. The outcomes of these case studies are further reviewed and validated by the outsourcing specialists in other firms. The proposed model is used as a decision support system that determines the ranking of sourcing alternatives and suggests the most suitable option for application maintenance offshoring. Full article

Developing sustainable products and processes is essential for the survival of manufacturers in the current competitive market and the industry 4.0 era. The activities of manufacturers and their supply chain partners should be aligned with sustainable development goals. Manufacturers have faced many barriers and challenges in implementing sustainable practices along the entire supply chain due to globalisation, outsourcing, and offshoring. Blockchain technology has the potential to address the challenges of sustainability. This study aims to explain the applications of blockchain technology to sustainable manufacturing. We conducted a systematic literature review and explained the potential contributions of blockchain technology to the economic, environmental, and social performances of manufacturers and their supply chains. The findings of the study extend our understanding of the blockchain applications in sustainable manufacturing and sustainable supply chains. Furthermore, the study explains how blockchain can influence the sustainable performance of manufacturers by creating transparency, traceability, real-time information sharing, and security of the data capabilities. Full article

For decades, apparel companies have profited from moving their manufacturing to low-cost countries and several academic studies have focused on understanding whether low-cost locations could support optimal supply chain configurations. However, the exploitation of resources in foreign sourcing countries often resulted in many environmental and social issues and apparel companies became progressively more concerned about the negative exposure that they could face with a limited supply chain transparency. Therefore, this paper aims at investigating global sourcing strategies of fast fashion retailers in order to understand whether the decision criteria influencing sourcing locations have changed over time to also embrace sustainability considerations. Drawing on a literature review on sustainability in fashion supply chains, offshore outsourcing, and fast fashion global sourcing, a new theoretical framework concerning fast fashion retailers’ sourcing locations is proposed together with a content analysis of their reports. The findings show that fast fashion retailers identify sustainability as a key element to consider in selecting sourcing locations since sustainability issues at suppliers’ factories may represent relevant hidden costs. Moreover, actions aimed at checking and improving sustainable practices in global sourcing policies are proven to support the development of a strategic sourcing reputation for their fast fashion brands. Full article

Recently, offshore outsourcing has become extremely important for companies that compete worldwide. In many industries, only companies that manage to be competitive globally can aspire to attain sustainable competitive advantages. Therefore, offshore outsourcing has become essential for many companies and recently has become more and more a vital part of the long-term strategies of the leading firms. The rapidly shifting conditions in the marketplace is forcing management to constantly review and defend its core competencies. Management is now confronted with a higher level of complexity and disruptions brought about in particular by the new waves of globalization and the irresistible march of technological changes. For these reasons, offshore outsourcing is transforming the functions of the traditional firms into a network of competencies. The tendency to offshore most of the productive and economic activities and processes can lead companies to transform themselves into virtual organizations, where all the functions could be outsourced through the formation of flexible networks and agile organizational structures. Full article