Spatial and temporal trends in information technology outsourcing |
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| Institution: | 1. Department of Epidemiology and Biostatistics, School of Public Health, Fudan University, Shanghai, People''s Republic of China;2. Key Laboratory of Public Health Safety, Ministry of Education, Shanghai, People''s Republic of China;3. Laboratory for Spatial Analysis and Modeling, School of Public Health, Fudan University, Shanghai, People''s Republic of China;4. Department of Microbiology and Health, School of Public Health, Fudan University, Shanghai, People''s Republic of China;5. Department of Environmental Art and Architecture, Changsha Environmental Protection Vocational Technical College, Hunan, People''s Republic of China;6. Faculty of Veterinary Science, The University of Sydney, Sydney, New South Wales, Australia;7. National Institute of Parasitic Diseases, Chinese Center for Disease Control and Prevention, Shanghai, People''s Republic of China;1. School of Mathematical Sciences, University of Technology Sydney, 15 Broadway, Ultimo, NSW 2007, Australia;2. School of Mathematics and Statistics, University of Glasgow, 15 University Gardens, Glasgow, G12 8QQ, Scotland;1. School of Public Health of University of São Paulo, São Paulo, Brazil;2. Nove de Julho University – UNINOVE, São Paulo, Brazil and Sao Caetano do Sul Municipal University Sao Caetano do Sul, Brazil;3. Educational and Research Institute, Barretos Cancer Hospital, Barretos, São Paulo, Brazil;4. Municipal Health Department of São Paulo, Coordination of Epidemiology and Information – São Paulo (SP), Brazil;5. Center for Geoprocessing and Socioenvironmental Information (GISA) of the Coordination of Epidemiology and Information (CEInfo) of the Municipal Health Department of São Paulo, São Paulo, Brazil |
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| Abstract: | Over the last two decades information technology (IT) outsourcing has grown dramatically, and has emerged as a strategic choice for firms searching for ways to control their costs and maintain a competitive edge. The mechanisms driving its growth are not fully understood though. In this research, we employ an approach that focuses on geographic, temporal, and industrial proximity in a mechanism that identifies the process underlying the diffusion of IT outsourcing across firms within the U.S from 2000 to 2010. We focus on the role that firm location plays in the diffusion process, and use space-time clustering techniques from the epidemiology literature to understand the diffusion process. We identify 38 space-time clusters based on IT outsourcing announcement data and the locations of firm headquarters among U.S.-based firms. When supplemented with additional information, such as type of services outsourced, the metropolitan area of the headquarters, and related industry information; the results offer insights into various types of diffusion processes that have been identified in the literature but have not been documented to date in the empirical manner that we have been able to do. |
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| Keywords: | Clustering methods Contagion effects Economies of scale Economies of scope IT services Outsourcing Spatio-temporal analysis Technology diffusion |
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