The global supply chain for outsourced services

An article in Bloombergbusinessweek (March 19,2012) describes new locations for higher level outsourced work – accounting, research, marketing etc. New locations in Argentina, Guatemala, Poland and Brazil, enable these tasks to be performed closer to the customer, despite being more expensive than India. Knowledge of US business, accents similar to the US, large pools of educated young employees – are described as the reason. Once these outsourced processes are standardized, will work travel once again to locations like India to realize even more savings ? Are the desired skills teachable or do they have to be ingrained ? Will higher speed data networks and video transmission diminish physical distance as the metric ?

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About aviyer2010

Professor
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