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This paper considers the impact that technology has on firms' choices over organisational form, in particular whether to produce inhouse or outsource and offshore services, and firms' decision over the location of activity. Technology reduces the transaction and adjustment costs of moving activity outside the firm and of carrying out at greater geographic distance. We find that more technology intensive firms purchase a greater amount of services on the market and purchase more offshore than less technologically intensive firms.
Authors
CPP Co-Director, IFS Research Director
Rachel is Research Director and Professor at the University of Manchester. She was made a Dame for services to economic policy and education in 2021.
Research Fellow Institute for Fiscal Studies
Laura is a Research Fellow at IFS. Her current work focuses on tax and social protection policy and programme evaluation in developing countries.
Working Paper details
- DOI
- 10.1920/wp.ifs.2005.0522
- Publisher
- IFS
Suggested citation
Abramovsky, L and Griffith, R. (2005). Outsourcing and offshoring of business services: how important is ICT?. London: IFS. Available at: https://ifs.org.uk/publications/outsourcing-and-offshoring-business-services-how-important-ict (accessed: 20 May 2024).
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