Constructing Service Machines-Global Sourcing of Knowledge-Intensive Services

Outsourcing highlights the need for explication and conceptualization of the relationship between the parties involved. Within the Service Sciences, Management and Engineering -framework service production systems can be studied as Service Machines. The machine -metaphor focuses research on the contractual constructions that link together various productive resources and capabilities and their evolution over contract generations. Essential attributes of the Service Machine are the tenacity of its incentive structure and the amount of friction created by transaction costs and administration. This paper outlines a research project on the management of the sourcing of knowledge intensive services. The leading partner in the project will be Helsinki University of Technology, and the project will join together eight academic institutions in Finland, India, USA and Estonia.