Outsourcing and offshoring of business services: Challenges to theory, management and geography of innovation Manchester Business School Working Paper, No. 604 Provided in Cooperation with: Manchester Business School, The University of Manchester Suggested Citation: Massini, Silvia; Miozzo, Marcela (2010) : Outsourcing and offshoring of business services: Challenges to theory, management and geography of innovation, Manchester Business School Working Paper, No. 604, The University of

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... Manchester Business School, Manchester This Version is available at: http://hdl.handle.net/10419/50689 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers are produced by The University of Manchester -Manchester Business School and are to be circulated for discussion purposes only. Their contents should be considered to be preliminary. The papers are expected to be published in due course, in a revised form and should not be quoted without the authors' permission. Abstract Drawing on an original survey, we discuss the trends and challenges posed by the outsourcing and offshoring of business services. We document and analyse the increasing offshoring of business services (administrative services, call centres, IT services, procurement and product development) from USA and Europe to less developed countries, the functions offshored, size of offshorers, destination, and delivery models and explore the role of ICTs and the development of both large global services suppliers and entrepreneurial ventures in developed and less developed countries. We derive implications regarding outsourcing decisions, globalisation of high value adding activities, such as product development and innovation, raising issues of evolving market structure and the emergence of technical clusters where companies develop expertise to provide, and compete for, activities and skills across a range of sectors.