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The Services Shift: Seizing the Ultimate Offshore Opportunity by Ajay Sharma, Robert E. Kennedy

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2 The Economics and Drivers of Offshoring

Business today is tougher, faster, more global, and more competitive.

Companies are being forced to be really good at what they do. They have to be more effective, more efficient, and more innovative. They have to beat their competition based on some combination of cost and quality.

In this chapter, we dig more deeply into exactly how that’s done in the context of a service business. We also look more systematically at the drivers that lie behind the globalization of the services sector today. What’s pushing businesses to go outside their traditional boundaries and geographies? Are those forces here to stay, or are they reversible? Are they likely to wane, or intensify?

First, though, we explore two ...

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