Abstract
The alignment between a firm's business and information systems (IS) strategy is widely believed to improve business performance. One strategic IS decision being considered by many firms is the international sourcing or offshoring of IS. Given the recent growth and acceptance of IS offshoring there is a need to examine the relationship between a firm's strategic orientation and their use of IS offshoring. Thus, this paper examines a firm's IS offshoring decision and business strategy using the popular Miles and Snow business strategy typology of defender, analyzer and prospector. Interesting results are expected in showing how a firm's business strategy classification influences their offshoring decision. Different IS offshoring activities (i.e., maintenance routines vs. new application development) will be examined to distinguish how the use of IS offshoring varies across business strategy orientations. Based on our analysis, propositions are presented to guide future IS offshoring business strategy alignment research. This research is one of the first to examine the relationship between business strategy and the IS offshoring decision and could provide early insights for guiding a firm's IS offshoring decision. [PUBLICATION ABSTRACT]