Routinizing the offshore choice: applying diffusion of innovation to the case of EDS

Abstract

Purpose – We treat offshoring as a managerial innovation. Should it still be considered an innovation? The purpose of this paper is to use innovation theory, especially, Rogers' diffusion of innovation theory (DOI) to examine this question.Design/methodology/approach – The paper examines the case of electronic data systems (EDS), a very large Information Technology Professional Services (ITPS) company, using a case study approach based on interviews, internal documents and secondary sources.Findings – At EDS it was found that offshoring has been fully assimilated within just a few years. During the early 2000s, EDS faced the challenge of a large‐scale shift in the competitive landscape and moved a large share of its global operations to offshore locations. The paper shows how this innovation has been diffused within the firm through the creation of an assessment and migration organization that has institutionalized and routinized the process of offshoring. At EDS, each client project goes through a centra...