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.
The authors gratefully acknowledge supportive funding through the PUBLIN Project, European Commission’s Framework 5 Program.
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© 2007 Werner Hölzl, Andreas Reinstaller and Paul Windrum
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Hölzl, W., Reinstaller, A., Windrum, P. (2007). Organizational Innovation, Information Technology, and Outsourcing to Business Services. In: Rubalcaba, L., Kox, H. (eds) Business Services in European Economic Growth. Palgrave Macmillan, London. https://doi.org/10.1057/9780230228795_11
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DOI: https://doi.org/10.1057/9780230228795_11
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-28038-4
Online ISBN: 978-0-230-22879-5
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