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International Outsourcing and the Supply Side Productivity Determinants

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  • Arti Grover

Abstract

A service provider firm in an outsourcing relationship is distinct from a typical firm because it is not a stand alone organization and fits somewhere in between the value chain of its client’s business. Thus, conventional factors like wages, capital, rent, energy consumption cannot appropriately determine a Business Process Outsourcing (BPO) firm’s productivity. Academic research is silent on the factors that influence the performance of a BPO firm even though the issue is pertinent from the perspective of the host country, the sourcing firm, the global outsourcing industry and of course the service provider firm. In this paper, we embark on to explore these factors.

Suggested Citation

  • Arti Grover, 2007. "International Outsourcing and the Supply Side Productivity Determinants," CESifo Working Paper Series 2088, CESifo.
    • Handle: RePEc:ces:ceswps:_2088
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp2088.pdf
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    References listed on IDEAS

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    3. Hartmut Egger & Peter Egger, 2006. "International Outsourcing and the Productivity of Low-Skilled Labor in the EU," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 98-108, January.
    4. Ashish Arora & Jai Asundi, 1999. "Quality Certification and the Economics of Contract Software Development A Study of the Indian Software Industry," NBER Working Papers 7260, National Bureau of Economic Research, Inc.
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