Sourcing

EFFECT OF PRESENT ECONOMY IN SOURCING BEHAVIOUR (SERVICE SECTOR)

ABSTRACT

In advanced economics, service sector accounts for two-third in GDP. Recent academic studies also acknowledge that business activities for service are significantly different from those for physical goods, due to service intangibility, heterogeneity, simultaneity, and perishability characteristics. So does it for service sourcing, in particular. However, little is still known about how service buyers source from their suppliers, which control pattern is used per phase in the sourcing process, and particularly, which factors are linked with the choice of control pattern, especially for the recently booming developed digital media industry.By examining in detail the buyers behavioral evidence in service sourcing process from selected cases to get general understanding regarding the control pattern used in sourcing process per phase,By comparing the value of potential linked factors with the control choice in different sourcing phase to identify actual linked factors (i.e., asset specificities, frequency/size, nature of relationship and risks associated with service) and to develop propositions regarding their impact on the specific choice of control pattern,This study contributes to theory development on control issue within service sourcing context.

INTRODUCTION

The services sector has been a major and vital force steadily driving growth in the Indian economy for more than a decade. The economy has successfully navigated the turbulent years of the recent global economic crisis because of the vitality of this sector in the domestic economy and its prominent role in India’s external economic interactions.

The services sector covers a wide range of activities from the most sophisticated information technology (IT) to simple services provided by the unorganized sector, such as the services of the barber and plumber. National Accounts classification of the services sector incorporates trade,...