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

Abramovsky, L.; Griffith, R.; (2005) Outsourcing and offshoring of business services: how important is ICT? (IFS Working Papers W05/22). Institute for Fiscal Studies: London, UK. 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: Working / discussion paper
Title: Outsourcing and offshoring of business services: how important is ICT?
Open access status: An open access version is available from UCL Discovery
Publisher version: http://dx.doi.org/10.1920/bn.ifs.2005.0522
Language: English
Keywords: JEL classification: D21, F23, L23. Outsourcing, offshoring, ICT, business services
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/2710
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