New Bangalores - The role of Central and Eastern Europe in business and IT services offshoring
The paper discusses how the second global shift in business services provision and corporate restructuring open up new offshoring opportunities into Central and Eastern Europe (CEE). It explores three problems: First, it builds upon the theoretical framework of the new paradigm of globalization, which considers offshoring as one of the most important globalizing forces of recent time. This results in a shift in global trade, namely from trade in goods to trade in tasks determined by the changing trends in the division of labour. Second, the paper gives an overview of services relocation into CEE in comparison with its Asian counterparts. As the EU expanded eastwards, the opportunities for European corporations to offshore their business services to these nearshore locations increased. Building on the region s nearshoring advantages such as geographical-cultural proximity and on their multilingual graduate supply, CEE is likely to utilise more value added quality driven BPO and KPO services. Third, the paper examines the implications of offshoring for the home markets in CEE assessing its impact on their locations. It reveals the role of offshoring activities in the metropolitan transformation and discusses the factors that make the capital cities an increasingly attractive option for companies to relocate their services. Despite CEE has taken advantage on the trend supported by the global service delivery models reducing dependency on any single location, its further growth may be influenced by the worsening macro-conditions, and future prospect of the region depends largely on government incentives and on the success of exploiting talent pools offered by its provincial cities.
Volume (Year): 2 (2013)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://jedep.spiruharet.ro/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- N. Gregory Mankiw & Phillip Swagel, 2006.
"The Politics and Economics of Offshore Outsourcing,"
NBER Working Papers
12398, National Bureau of Economic Research, Inc.
- Gregory Mankiw, N. & Swagel, Phillip, 2006. "The politics and economics of offshore outsourcing," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 1027-1056, July.
- Phillip Swagel & N. Gregory Mankiw, 2005. "The Politics and Economics of Offshore Outsourcing," Working Papers 49881, American Enterprise Institute.
- N. Gregory Mankiw & Phillip Swagel, 2006. "The Politics and Economics of Offshore Outsourcing," Harvard Institute of Economic Research Working Papers 2120, Harvard - Institute of Economic Research.
- Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
- Hillberry, Russell & Hummels, David, 2008.
"Trade responses to geographic frictions: A decomposition using micro-data,"
European Economic Review,
Elsevier, vol. 52(3), pages 527-550, April.
- Russell Hillberry & David Hummels, 2005. "Trade Responses to Geographic Frictions: A Decomposition Using Micro-Data," NBER Working Papers 11339, National Bureau of Economic Research, Inc.
- Mary Amiti & Shang-Jin Wei, 2005. "Service offshoring, Productivity, and Employment; Evidence From the United States," IMF Working Papers 05/238, International Monetary Fund.
- Anonymous, 2003. "Competing in the 21st Century," Amber Waves, United States Department of Agriculture, Economic Research Service, April.
- Grote, Michael H. & Täube, Florian A., 2007. "When outsourcing is not an option: International relocation of investment bank research -- Or isn't it?," Journal of International Management, Elsevier, vol. 13(1), pages 57-77, March.
- Meyer, Thomas, 2006. "Offshoring to new shores: Nearshoring to Central and Eastern Europe," MPRA Paper 5785, University Library of Munich, Germany.
- Michael H Grote & Florian A T�ube, 2006. "Offshoring the financial services industry: implications for the evolution of Indian IT clusters," Environment and Planning A, Pion Ltd, London, vol. 38(7), pages 1287-1305, July.
- 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.
- Robert-Nicoud, Frédéric, 2008. "Offshoring of routine tasks and (de)industrialisation: Threat or opportunity--And for whom?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 517-535, March.
When requesting a correction, please mention this item's handle: RePEc:sph:rjedep:v:2:y:2013:i:3:p:77-100. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rocsana Bucea-Manea-Tonis)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.