the transfer of service operations to foreign countries in order to take advantage of a supply of skilled but relatively cheap labor. Services may be...
In a much debated research paper last year, Princeton economist Alan S. Blinder concluded that up to 38 million jobs, or 29 percent, of US jobs are potentially offshorable within the next couple of decades -- that is, capable of being outsourced to workers in other countries. ...
Outsourcing and offshoring are words that describe how companies fragment the production process into globally sourced supply chains. Everybody have seen the globalization process unfold for autos, apparel, and electronics; now everybody is seeing global sourcing call centers, software, and finance. Outsourcing and offshoring raise questions of economic theory, business...
A simple model of offshoring is used to integrate the complex gallery of results that exist in the theoretical offshoring/fragmentation literature. The paper depicts offshoring as 'Shadow migration' and shows that this allows straightforward derivation of the general equilibrium effects on prices, wages, production and trade (necessary and sufficient conditions...
Good news for the IT world: average compensation for technology managers has finally entered the six-digit realm, according to new survey results from InformationWeek IW. The results suggest that average IT managers earn $105,000 annually in cash salary and bonuses. But it's not all good news: automation and offshoring still...
Offshoring, or overseas sourcing of routine tasks, generates efficiency gains that benefit consumers and workers with skills similar to those whose very jobs are threatened by offshoring. Essentially, the interaction between offshoring, footloose capital and agglomeration economies locks the comparative advantage of advanced nations in complex or strategic functions while...
Certainly, any attempt to predict future economic changes, particularly at the metropolitan level, is full of risks. Yet the alternative - ignoring what one know about current trends, likely possibilities, and regional economic structures - is equally if not more risky, as it threatens to leave metropolitan areas unprepared for...
You've established your offshore center. You've navigated the initial transition hurdles. You have competent management in place at both ends. You've hired, oriented and trained the first hundred employees. The work has started to flow between the onshore and offshore teams. No major catastrophe has occurred in terms of missed...
Globalization has changed the nature, organization, and location of engineering work in the personal computing industry. As a consequence, lower skill and lower paid engineering jobs that might have been created in the U.S. are instead being created overseas, while higher skill and higher paid jobs remain in the U.S....
The depth and breadth of pending corporate efforts to offshore critical business processes is significant and raises important issues for consideration as enterprises in various industries progress along the offshoring maturity curve. This paper reports on the rapidly increasing offshoring activity of U.S.-based banks along with examining the associated implications...
Critics of globalization claim that firms are being driven by the prospects of cheaper labor to shift employment abroad. Yet the evidence for this, beyond anecdotes, is slim. This paper reviews evidence on whether firms that do business in foreign countries are substituting foreign for domestic labor. The results of...
Enterprises engaged in software offshoring are reticent about their involvements. This paper presents a view of software offshoring from an enterprise perspective based on the author's extensive globalization experience. It addresses the wide spread fear of decline of software development in developed countries due to offshoring by presenting a case...
For centuries, most international trade involved an exchange of complete goods. But, with recent improvements in transportation and communications technology, it increasingly entails different countries adding value to global supply chains, or what might be called ?trade in tasks.? A new conceptualization of the global production process is proposed that...
The United States has experienced an increase in the offshore outsourcing of jobs in the service industry. Although offshoring is common in the manufacturing industry, it only recently began in the service industry. The recent increase in the service industry has occurred because of new technology and ability to access...
Most research shows that offshoring and outsourcing are clearly the next wave of improvement initiatives for delivery of support services, but how does one decide whether outsourcing or offshoring are right for an organization? Having assisted a number of companies make the internal build vs. external outsource, and onshore vs....
Byline: Regis Coccia As offshoring certain job functions becomes more common, financial services companies are looking closely at the advantages of moving back-office operations outside their home countries, a survey suggests. U.K.-based insuran Byline: Regis Coccia As offshoring...
This paper takes a new look at the issue of overseas sourcing of services. In framework in which comparative advantage is endogenous to agglomeration economies and factor mobility, the fragmentation of production made possible by the new communication technologies and low transportation costs allow global firms (multinational corporations or individual...
This paper analyzes a two-country model of Foreign Direct Investment FDI. Two firms, each of which is originally situated in only one of the countries, first decide whether to build a plant in the foreign country. Then, they decide whether to relocate R&D activities. Finally, they engage in product-market competition....
The benefits of international outsourcing, or offshoring, arguably supersede the detriments. While outsourcing implies varied interpretations, this paper focuses on the connotation commonly referred to as offshoring. Many who oppose offshoring argue that it hurts local and domestic businesses or that it unethically exploits cheap labor. However, research indicates that...
Any CIO preaching the gospel of productivity better know if his organization's methodologies discourage - or invite - healthy experimentation with these nascent development platforms. A CIO should know if he can now consistently get a year's worth of software development in 90 days. A CIO should know if 75...
Despite the attention that offshore outsourcing currently demands in the public media, there is little empirical evidence on its economic impact. As a consequence of rising fears of job losses associated with the phenomenon, most existing research on the subject is primarily concerned with addressing related labour market issues. The...
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