The Services Shift

About the Author

Robert E. Kennedy is the Tom Lantos Professor of Business Administration and the director of the Global Initiative at the University of Michigan's Ross School of Business. Additionally, he serves as the executive director of the William Davidson Institute. His extensive experience includes eight years at Harvard Business School, where he focused on global strategy and international business. Alongside him, Ajay Sharma, who is the research manager for WDI's Globalization of Services Initiative, brings a wealth of practical experience from his time at Infosys and PriceWaterhouseCoopers. Together, they have penned a compelling guide on the vast opportunities in offshoring services.

Main Idea

"The Services Shift: Seizing the Ultimate Offshore Opportunity" by Robert E. Kennedy and Ajay Sharma explores the significant wave of change in the global economy: the globalization of services. This book details how companies can harness this shift to enhance their competitive edge. The authors emphasize that understanding and implementing effective service offshoring strategies is essential for modern businesses to thrive amidst increasing global competition.

Table of Contents

• Introduction
• Outsourcing and Offshoring
• Fundamental Reorganization
• Globalization of Services: What, Why and When
• The Compelling Case for the Services Shift
• You and Your Vendor
• The Economics and Drivers of Offshoring
• The Value Chain
• Making it Real
• The Supply Side
• Shifting Skill Sets
• The Services Shift: Policy Implications
• Four Challenges for Developing Economies
• Looking Ahead

Introduction

The introduction sets the stage by highlighting the massive impact of globalization on the manufacturing sector, emphasizing that this wave is now extending into services. As the authors put it,

"The globalization of services is not simply a story about jobs being moved offshore. It's about a fundamental reorganization of work."

This reorganization means different tasks are carried out by different individuals in various locations, aiming to leverage the best combination of talent, resources, and local markets.

Outsourcing and Offshoring

Outsourcing involves moving a particular task outside an organization's boundaries. When a task crosses geographic boundaries, it becomes offshoring. This shift allows companies to tap into global talent pools and cost efficiencies. As the authors explain,

"Offshoring comprises a wide range of relationships between the 'parent' company and remote service providers."