Information And Communication Technologies ( Ict )

1433 Words Mar 20th, 2015 6 Pages
“Globalization and rapid improvements in information and communication technologies (ICT) have resulted in a closely integrated global labour and capital market (UNCTAD, 2004) where firms have greater access to human capital scattered around the globe” (Lewin, 2005 and Volberda, 2006). Due this the firms have started offshoring their business to different countries as an effective strategic practice so as to increase their profits. Offshoring can be done in two ways i.e by setting up a partnership with an existing company in the country or by setting up their base. Creating value through outsourcing has emerged as an important strategy for firms the services sector in the knowledge based global economy. In spite of the growing significance of outsourcing, we have limited knowledge of offshoring and outsourcing to emerging markets that are moving up from providing low‐end services to high‐end services (Javalgi et al., 2009). “Increasingly, standardized IT and business processes as well as high-valued-added activities, for instance engineering, R&D and product design, are being offshored” (Lieberman, 2004 and UNCTAD, 2005). “Emerging markets such as South Korea, Malaysia, India, China, Russia, and Brazil continue to lead in the outsourcing of knowledge‐based services” (Radhakrishnan, 2007). This leads to a fight to sustain this advantage over other countries from possible offshoring.
Offshoring business models may take many forms including the following i.e Captive offshoring,…
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