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Outsourcing and offshoring of business services: how important is ICT?

Abramovsky, L.; Griffith, R.; (2006) Outsourcing and offshoring of business services: how important is ICT? Journal of the European Economic Association , 4 (2-3) pp. 594-601. 10.1162/jeea.2006.4.2-3.594. Green open access

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Abstract

This paper considers the impact that information and communication technology (ICT) has on firms' choices over organisational form. In particular, the decision over whether to produce in-house or outsource services, and the decision over the location of activity. ICT reduces the transaction and adjustment costs of moving activity outside the firm, and of carrying it out at greater geographic distance. We find that more ICT-intensive firms purchase a greater amount of services on the market and they are more likely to purchase offshore than less ICT-intensive firms.

Type: Article
Title: Outsourcing and offshoring of business services: how important is ICT?
Open access status: An open access version is available from UCL Discovery
DOI: 10.1162/jeea.2006.4.2-3.594
Publisher version: http://dx.doi.org/10.1162/jeea.2006.4.2-3.594
Language: English
Additional information: Copyright Massachusetts Institute of Technology Press
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/16505
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