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4.2. Offshoring drivers

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As seen in the literature review (Anon (2004); Bryson and Ngwenyama (1999); Qu and Brocklehurst (2003); Huang and Yang (2000)), when companies are deciding to set up an offshore operation, they typically look at cost savings as the most prominent reason for the practice. However, as offshoring evolves to higher-level backoffice functions, cost becomes just one of many factors that influence the location decision. The lower cost of labour in offshore countries does not matter unless you also take into account productivity and quality. The availability of a skilled pool of qualified developers with the latest technical knowledge, able to handle large projects and produce quality software, is the factor attracting the interviewed companies to offshore systems development to Morocco.

There are also a number of other drivers for IT offshoring that may not appear influential if taken in isolation but that could be significant in selecting an appropriate offshoring location.

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