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This paper discusses the theory and evidence behind the logic of business process outsourcing, with a specific focus on human resource outsourcing (HRO). Market analysts project rapid growth in the global market for HRO, from around $30 billion in 2005 to just over $40 billion in 2008. The paper...
This Briefing Note considers recent trends in specialisation, outsourcing and offshoring of businessservices.Specialisation within a firm happens when a firm organises an activity in a specialised unit, for example,when a firm moves payroll activities out of the back office of a factory, and...
The UK’s poor productivity performance relative to the US has been a focus for government policy and analysis in recent Budgets and Pre-Budget Reports. Figure 1, where the UK business sector is scaled to 100, shows that US business sector labour productivity (value-added per worker) was just...
Offshoring – the practice of sourcing business services fromoverseas – ignites controversy. The loss of UK jobs in businessservices to foreign providers makes headline news. Theimplication is that the UK has become less competitive in thebusiness services market. But what is the reality?...