Everywhere and nowhere: Nearshore software development in the context of globalisation

Abstract

Offshore software outsourcing, a major contributor to globally distributed work (GDW), has been identified as one of the most striking manifestations of contemporary globalisation. In particular, offshoring resonates with influential views that suggest that ICTs have rendered location irrelevant. Some research, however, has questioned this “placeless logic” and suggested that location may be significant to the success of offshoring ventures. In this paper, we draw on evidence from two nearshore software development ventures in the Caribbean to identify a number of locational characteristics relating to the physical, economic and cultural setting, local resources and government policy that may be important in influencing the suitability of offshore outsourcing venues. Some of these are recognised, even by companies pursuing placeless location strategies, while others were unanticipated. The cases also suggest that companies may be able to actively shape certain characteristics to their advantage. Implications for vendors and clients of nearshore information services, and potentially also for companies considering offshore ventures in non-traditional locations, are identified.