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Key Message

The globalization of services is offering unprecedented opportunities for emerging and developing economies to diversify trade portfolios' and move into high value industries. IISD explores the enablers, drivers, and sustainable development implications of this phenomenon with a specific focus on the BPO and ITES industries.

Globalization of Services

The second wave of globalization is here, and it is in services. Until a year or two ago, the bulk of services outsourced from one country to another were those linked to functions that were repetitive, routine and hence, relatively uncomplicated. Examples include back office data entry and data processing, back office administration, human resource administration, bookkeeping, facility management, publication layout, and customer calls centres.

Today, off-shoring is expanding to include more specialized and expert tasks that have a direct impact of an organization's brand value and bottom line. Hospitals are off-shoring medical transcription, diagnosis and decisions on surgical intervention. Schools and universities are turning to teachers and lecturers in India to provide support with tutorials and thesis supervision. Commodity and consumer product firms are outsourcing accounting, marketing, design and R&D functions. Legal firms are off-shoring litigation and patent research. The insurance and investment industries are off-shoring analysis and actuarial functions.

Is this trend likely to continue? And if it does, what are the implications for triple bottom line performance of both firms and the nations involved in these trading transactions?

IISD's preliminary discussion paper (PDF - 186 kb) on the Globalization of Services explores this debate further.

We welcome expressions of interest and comments on this preliminary overview as we continue to research this debate.

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