Outsourcing and the Transfer of Services Around the World: Implications for Poland
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Publication date: 2007-02-28
GNPJE 2007;213(1-2):33-57
The paper sets out to examine the microeconomic aspects of the outsourcing and international transfer of services. To this end, the author defines some basic terminology linked with this process as well as its mechanisms and ties between enterprises in different countries. A chart showing a network of cross-border ties and service flows is presented, as well as the results of various business activities. Changes taking places in enterprises are analyzed from the perspective of evolution of their business operations, management and foreign expansion. The author highlights the importance of information and communication technology (ICT) in these processes. She shows that ICT services tend to be moved from developed countries to the Third World and Central Europe, among other regions, largely because Western European companies want to reduce their production and transaction costs. Many Central European countries are capable of providing modern ICT services at competitive prices. Modern ICT services range from data processing to know-how development, and the general rule is that technologically advanced services produce greater benefits for the service provider and the host country. The movement of services, technology and capital linked with outsourcing is a dynamically developing segment of the international market. Polish companies should step up their activities to win a larger portion of the market even though this forces them to meet a number of conditions, some of which depend on what happens in their business and institutional environments.
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