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Organizational Innovation, Information Technology, and Outsourcing to Business Services

In: Business Services in European Economic Growth

Author

Listed:
  • Werner Hölzl
  • Andreas Reinstaller
  • Paul Windrum

Abstract

This chapter examines the relationship between organizational innovation, the introduction of new internet-based ICTs, de-verticalization, and the rapid growth in business-service outsourcing since the early 1990s. We present data on the range of activities that are being outsourced, and discuss a set of potential advantages associated with outsourcing activities to knowledge-intensive service providers (KIBS). We also examine the latest empirical studies which throw up a set of potential disadvantages associated with outsourcing. These suggest that outsourcing may have advantages in the short run, but may also have negative long-run implications for competitive performance.

Suggested Citation

  • Werner Hölzl & Andreas Reinstaller & Paul Windrum, 2007. "Organizational Innovation, Information Technology, and Outsourcing to Business Services," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 10, pages 177-192, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-22879-5_11
    DOI: 10.1057/9780230228795_11
    as

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