Improving Innovation and Performance in Professional Service Outsourcing – An Empirical Study in Emerging Market

Abstract

This study investigates how a professional service provider’s external integration with global clients and internal integration across various functional units impact its innovation and performance under various external environmental uncertainties. Drawing on the theory of organisational learning and dynamic capabilities, a conceptual framework is proposed and tested empirically by using survey data from Indian-based professional service providers. This study contributes to the much-needed efforts in studying professional service outsourcing and provides helpful managerial guidelines to both professional service providers and global clients regarding how to properly manage outsourcing activities to achieve expected benefits.