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The Scale and Characteristics of Services Offshoring in the Visegrád Countries

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  • Magdalena Myszkowska

    (Wroc³aw University of Economics)

Abstract

The paper aims to outline the current position of V4’s as destinations for services offshoring activities, analyse the extent and patterns of service exports and service-based FDI, and to determine their potential as offshoring locations. The paper is divided into six sections. Following the introduction, the 2nd section provides the theoretical background and gives an overview of the definitions of services offshoring. The 3rd and 4th sections examine trade data in order to find evidence of enhanced offshoring-related service activities in V4’s. The 5th section studies the current and future position in the global services offshoring market of the CEECs. The final section contains research conclusions. In the last few years, the CEECs have become an important location for services offshoring; there has been significant growth in the participation of this region in the global services offshoring market. Trade statistics confirm the assumption that expanding export in other business services and ICT services was associated with the growing importance of the V4 countries as offshoring locations. Service offshoring is already a large and fastgrowing industry in V4’s, and there are emerging opportunities for extending it even further, individually and as a group, building on their past successes in exports. The main threats that V4’s face are related to other CEECs that will seek to penetrate further into the nearby Western European market. The results will contribute to the increase of knowledge of the society about one of the most crucial processes in the contemporary global economy. It is expected that offshoring will spread, embracing new and more advanced business processes. Hence, this phenomenon demands further analyses.

Suggested Citation

  • Magdalena Myszkowska, 2014. "The Scale and Characteristics of Services Offshoring in the Visegrád Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(3), pages 33-46.
    • Handle: RePEc:krk:eberjl:v:2:y:2014:i:3:p:33-46
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    References listed on IDEAS

    as
    1. Magdolna Sass & Martina Fifekova, 2010. "Offshoring and Outsourcing Business Services to Central and Eastern Europe: Some Empirical and Conceptual Considerations," European Planning Studies, Taylor & Francis Journals, vol. 19(9), pages 1593-1609, October.
    2. Ghibutiu, Agnes & Poladian, Simona, 2009. "Global Sourcing Of Services: How Well Are The New Eu Member States Coping With The Challenges? (Part I)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(1), pages 123-135, March.
    3. Ghibutiu, Agnes & Poladian, Simona, 2009. "Global Sourcing of Services: How Well Are the New EU Member States Coping with the Challenges? (Part II)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(2), pages 184-199, June.
    4. Mari Sako, 2005. "Outsourcing and Offshoring: Key Trends and Issues," Papers Presented at Global Meetings of the Emerging Markets Forum 2005outsourc, Emerging Markets Forum.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Central and Eastern Europe (CEE); international outsourcing; offshoring; service-based FDI; service trade; Visegrád countries (V4);
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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