Knowledge overlap in nearshore service delivery

Multinational organizations now increasingly source tasks from nearshore units. While, offshore locations promise superior opportunities for cost savings and access to large scale, flexible workforces, organizations are increasingly distributing work much closer to home (Deloitte 2014). One of the biggest attractions of nearshore locations is proximity. In principle nearshore units are geographically, temporally, and culturally closer to their onshore counterparts reducing the cost and coordination effort to manage distance. Despite the anticipation that onshore units and nearshore units will operate effectively from distinctive and separate knowledge bases, they continue to be bogged down by knowledge overlaps. Knowledge overlaps (KOs) are a duplication of information and know-how of specific migrated activities that allow onshore units to retain control of nearshore units. In this paper, we draw on data from an on-going qualitative case study to demonstrate how nearshore units manage KOs and relinquish control of processes.