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

Laura Abramovsky and Rachel Griffith

No W05/22, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper considers the impact that technology has on firms' choices over organisational form, in particular whether to produce inhouse or outsource and offshore services, and firms' decision over the location of activity. Technology reduces the transaction and adjustment costs of moving activity outside the firm and of carrying out at greater geographic distance. We find that more technology intensive firms purchase a greater amount of services on the market and purchase more offshore than less technologically intensive firms.

Keywords: Outsourcing; offshoring; ICT; business services (search for similar items in EconPapers)
JEL-codes: D21 F23 L23 (search for similar items in EconPapers)
Pages: 16 pp.
Date: 2005-10-14
New Economics Papers: this item is included in nep-bec and nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Outsourcing and Offshoring of Business Services: How Important is ICT? (2006)
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