Global Business Service Outsourcing

Abstract

This article discusses the motives and determinants of global business service outsourcing. Similar to foreign production, outsourcing providers seek resources, new markets, efficiency, and strategic assets or capabilities. Similarities between multinational enterprises producing goods and multinational enterprises offering services with respect to theories related to global strategy, location, management (e.g. managing international data sharing), ownership, internationalization and external environment are also discussed.

Keywords: Business services, outsourcing, offshoring, decision making, information technology, multinational companies, foreign direct investment

JEL Classification: F00