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Wharton-SMU Research Center
In-House Seminar
Guest Speaker:
Ravi Aron
Assistant Professor of Operations and Information Management, The Wharton School, University of Pennsylvania.
Topic:
A Model of IT-Enabled Decentralized Information Production and The Extended Organizational Form: The Boundaries of the Knowledge-Intensive Firm Revisited
Venue:
Eu Tong Sen Building, Level 1, Seminar Room 2
Singapore Management University
469 Bukit Timah Road, Singapore 259756
Date:
Monday, 21 July 2003, at 4.00pm
Reservation:
This seminar is free. Places are limited. Please confirm your attendance by Friday, 18 August 2003, 12 noon with Ms. Lim Lih Yeng at lylim@smu.edu.sg or telephone: 6822-0197.
About the Seminar:
Recent reports in the business and trade press have highlighted the growing trend of business process outsourcing (BPO). Processes and task, many of which were until now considered critical to a firm's principal value proposition are increasingly being outsourced to labor markets that offer favorable cost frontiers. IDC estimates that worldwide spedning on BPO services totaled $712 billion in 2001 and projects that the BPO market will grow to $1.2 trillion by 2006. The Gartner group makes more conservative projections, estimating the global BPO market to grow to about 178 billion in 2005. The Forrester group estimates that about 3.2 million jobs in the services industry may be outsourced in the next decade. Some state legislatures have brought forward bills that prohibit the outsourcing of "governemtn work" to labor markets outside the US to prevent job losses in the US.
We present preliminary data from an empirical study of several corporations in the US, UK, Singapore and India. We formulate an analytical model of an incomplete contract between two firms. The user firm outsources processes to a supplier firm which chooses an effort level resulting in a quality of output that is private information to the supplier. The user firm's level of investment in monitoring mechanisams isdriven by the trade-off between the costs of monitoring.
In-House Seminar
Guest Speaker:
Ravi Aron
Assistant Professor of Operations and Information Management, The Wharton School, University of Pennsylvania.
Topic:
A Model of IT-Enabled Decentralized Information Production and The Extended Organizational Form: The Boundaries of the Knowledge-Intensive Firm Revisited
Venue:
Eu Tong Sen Building, Level 1, Seminar Room 2
Singapore Management University
469 Bukit Timah Road, Singapore 259756
Date:
Monday, 21 July 2003, at 4.00pm
Reservation:
This seminar is free. Places are limited. Please confirm your attendance by Friday, 18 August 2003, 12 noon with Ms. Lim Lih Yeng at lylim@smu.edu.sg or telephone: 6822-0197.
About the Seminar:
Recent reports in the business and trade press have highlighted the growing trend of business process outsourcing (BPO). Processes and task, many of which were until now considered critical to a firm's principal value proposition are increasingly being outsourced to labor markets that offer favorable cost frontiers. IDC estimates that worldwide spedning on BPO services totaled $712 billion in 2001 and projects that the BPO market will grow to $1.2 trillion by 2006. The Gartner group makes more conservative projections, estimating the global BPO market to grow to about 178 billion in 2005. The Forrester group estimates that about 3.2 million jobs in the services industry may be outsourced in the next decade. Some state legislatures have brought forward bills that prohibit the outsourcing of "governemtn work" to labor markets outside the US to prevent job losses in the US.
We present preliminary data from an empirical study of several corporations in the US, UK, Singapore and India. We formulate an analytical model of an incomplete contract between two firms. The user firm outsources processes to a supplier firm which chooses an effort level resulting in a quality of output that is private information to the supplier. The user firm's level of investment in monitoring mechanisams isdriven by the trade-off between the costs of monitoring.
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