Off shored service cost model as a key post-transition challenge

Abstract

Business process off shoring 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 off shoring managerial community constantly struggles with. The paper presents the off shored 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 off shoring 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 off shored business services.