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Service outsourcing: The home, the host and the provider
Author(s) -
Grover Goswami Arti
Publication year - 2018
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12343
Subject(s) - stylized fact , outsourcing , offshoring , service provider , business , service (business) , labour economics , offshore outsourcing , wage inequality , inequality , distribution (mathematics) , economics , business service provider , host (biology) , marketing , wage , service design , mathematical analysis , mathematics , macroeconomics , ecology , biology
Abstract Although offshoring service providers have grown meteorically in the last two decades, the phenomenon is still primarily analyzed through the lens of a home country and its firms. This paper presents a framework for explaining some of the stylized facts of the offshore service provider industry. The model characterizes the service choice of offshore service providers under alternative skill distribution and also explains why complex service providers employ more skilled workers, pay higher wages, and have a lower scale of provision. Finally, it sheds light on the relationship between partnering country sizes and wage inequality.