International diversification, performance and offshoring: the case of the computer services industry

Christian Genthon (christian.genthon@upmf-grenoble.fr)
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Christian Genthon: LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article deals with the internationalization process in the computer services industry. It discusses two aspects of internationalization: the relationship between international diversification and firm performances and the new process of offshoring part of the business to low-cost countries. Analysis is based on a proprietary database covering data for the industry's 45 largest companies for the past nine years (1998-2006). It shows that product internationalization has not generated substantial profits for firms that have given priority to international growth. Non sequitur, though precise data is lacking, it seems that it has become common practice over the last five years to outsource parts of the business to subsidiaries in low-cost countries. We do not find any relation between offshoring and profitability or internationalization. The internationalization of process and product seems to be disconnected.

Keywords: computer industry; services; internationalization; industrie informatique; internationalisation de la production; entreprise multinationale; délocalisation (search for similar items in EconPapers)
Date: 2008-09
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00348198v1
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Published in XVIII international RESER conference “New horizons for the role and production of services”, Stuttgart, 25-26 septembre 2008, Sep 2008, Stuttgart, Germany

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