Damian Kedziora

Lappeenranta University of Technology, Lappeenranta, Finland

damian.kedziora@student.lut.fi

OFFSHORED SERVICE COST MODEL AS A KEY POST-TRANSITION CHALLENGE

Andrzej Kraslawski

Lappeenranta University of Technology, Lappeenranta, Finland

Lodz University of Technology, Lodz, Poland

Andrzej Kraslawski(@lut.fi

Timo Kärri

Lappeenranta University of Technology, Lappeenranta, Finland

timo.karri@lut.fi

 Abstract. Business process offshoring  has been dynamically growing worldwide in the last few years, facilitated by the corporate need for operational expenses reduction, overcoming skilled workers shortage and the potential for operations optimization. At every stage of organizational changes, there are various challenges the service offshoring managerial community constantly struggles with. The paper presents the offshored service cost model that can be adjusted and applied for service budgeting, valuation and control, for it has been identified as the most common challenge affecting Polish service offshoring corporations in the  post-transition period. The need for strengthening this area of knowledge was identified through  empirical research  and the case study conducted in this work serves  for presenting the authors’  insights on cost modelling for offshored business services.

Received: September, 2016

1st Revision: November, 2016

Accepted: December, 2016

DOI: 10.14254/2071-8330.2016/9-3/18

JEL Classification: D61

Keywords: offshoring, service, transition, cost, model