Offshoring – New Trend on the Global Market
Abstract
New information and communication technologies are dramatically changing the tradability of the information set of services the global market. Cost reduction is one of the prime motivations for offshoring. The next are: improved quality, availability of labour with appropriate skills, economic and political stability, communication and technological infrastructure.
The global shifts in services offers large potential benefits for countries at both ends of the process: the receiving countries gain jobs, skills, access to foreign markets and other benefits while the sending ones improve their competitiveness and can move into higher value activities.
Offshoring reflects a revolution in the tradability of services. It has fundamentally changed the environment for doing business and opened completely new opportunities for restructuring the production of corporate services functions across borders. But the offshoring of service functions is still at an early stage so the rapid grow of offshoring is still expected.
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