The offshoring services has become increasingly important for firms and their competitiveness as well as for countries wishing to enter the global market. Previous studies have considered the effects of offshoring and the forms of knowledge transfer mainly within multinational corporations (MNCs) and their subsidiaries abroad. This research focuses on the effects of offshoring in the host market and its supply firms, and is based on a dynamic of „mutuality of interest“ in a balanced organization in the global market. The main argument of this work is that knowledge creation should be supported by both sides. The „digital revolution“ is giving many emerging countries the chance to position themselves in the global market through offshoring and therefore to upgrade the local economy. This is a theoretical and empirical approach based on the case studies of Montevideo (Uruguay) and Santiago and Valparaíso (Chile), and indicates that each offshoring model has different effects on the knowledge transfer between firms. Moreover, proximity between foreign direct investments (FDI) and domestic firms can play an important role in interactive organizational learning processes. Through the classification of companies in the information technology sector and the identification of cases of offshoring, modes of knowledge transfer emerge which show how domestic and foreign firms transfer knowledge, and to what extent this can benefit the host economy
