Organizations and Social Change, Forthcoming
5 Pages Posted: 1 May 2013
Date Written: April 11, 2013
Outsourcing of IT, tech support and other business services has become a global trend. Watching India’s success in the outsourcing space, many developing countries now try to grow their own business service economy, including countries in Africa. But what does it really take to become a global outsourcing hub? Can any country with low-cost labor, a good IT infrastructure and favorable business climate join the club? Based on a comparison of Morocco and Kenya, this article argues that a country's potential to attract outsourcing projects depends on its ability to offer services that are commoditized enough to attract a large global or regional client base, but distinctive enough to lower global competition. This has important implications for regional economic policies, in particular in developing countries.
Keywords: Commoditization, service outsourcing, global sourcing, BPO, ITO, Africa, Kenya, Morocco
JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L62, L84, O14, R11, P45, P48, F59, F21, F22
Suggested Citation: Suggested Citation
Manning, Stephan, Tech support en français s’il vous plaît!? The Challenges of Becoming a New Global Outsourcing Hub (April 11, 2013). Organizations and Social Change, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2258722