Trade in Services: The Global Sourcing of Business Services
In the late 1990s, Yair Aharoni was one of the early international business scholars who spearheaded exploration of FDI in services. This chapter reviews a more recent development of trade in business services that involves the demand for and the emergence of a global sourcing industry for business services such as business processes, information technology infrastructure, software development, engineering services, innovation (product development and design, technology and process breakthrough, etc.), marketing and sales (e.g., customer relationships management), human resource management, contact centers, and knowledge process outsourcing. The chapter is based to a large extent on findings from the longitudinal international Offshoring Research Network (ORN) project, which was initiated in 2004 by the Duke University, Fuqua School of Business Center for international Business Education and Research (CIBER).
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