ABSTRACT

Recent globalization efforts have utilized and focused on offshored outsourcing of non-manufacturing processes and business activities, with authors arguing the many different facets of the concept and its implications. The ongoing debates have revolved around issues related to benefits for outsourcing countries and countries that are recipients of outsourcing, the types of skills and associated unemployment, the types of industries that are being most effected, and even its political implications. However, a case could be made that this is an evolutionary step in globalization and is a process that continues globalization, accelerated and enhanced by Web and cutting-edge developmenst in communication technologies. Therefore, as it was for earlier manufacturing based globalization efforts, this process also has positive and negative consequences as industries are reshaped, economies and world politics changed, all in one generation. This paper discusses various issues related to globalization of non-manufacturing business processes through offshoring and presents the consequences of these ongoing efforts.

Key words: Globalization, outsourcing, offshoring, investment risk, opacity index, multinationals, modular company, Europe