Offshoring in the core: Russian software firms onshoring in the USA

Offshoring and outsourcing have become the buzzwords of the IT community and the popular media discourse about the current era of globalization in services. Acknowledging the geographic perspective expressed in these dominant terms, in this article I examine the processes and activities that are oriented in the opposite direction. Capturing this inversion, I develop the concept of ‘onshoring’ and use research material from fieldwork conducted with IT firms in St Petersburg, Russia and their affiliates, agents and clients in the USA to provide an empirical case study. Onshoring encompasses the corporeal, representational, material and legal practices of offshore firms developing a presence onshore, with Russia as offshore and the USA as onshore in this case. The lack of an established Russian professional diaspora in the USA created a context in which developing a recognizable onshore presence was necessary for firms based in Russia. By explicitly recognizing that the efforts, risk‐taking and experimental strategies of offshore firms to create connections, networks and contacts onshore in the USA are a constitutive part of offshore outsourcing, I document and examine the less acknowledged complex flows and practices of onshoring. I argue that although these actors and processes may seem marginal to the widely recognized narrative of offshore outsourcing, in fact, they are creative and strategic compensations that reveal how the globalization of services is enacted at the micro‐level.