Karina Fernandez-Stark

The offshore services value chain : developing countries and the crisis

This paper analyzes the recent evolution and impact of the global economic crisis on the offshore services industry. Using a global value chains framework, the authors classify the offshore services sector in a comprehensive set of general and industry-specific activities that correspond to different segments and stages in the value-adding process for services. Through an analysis of the impact of the economic crisis on the industry, a small decline in demand was found; however this did not cause any structural changes in the market. The crisis has created two opposing effects: general contraction of demand by existing customers due to the recession; and, at the same time, a substitution effect by which new services are being moved from developed countries to emerging economies in search of cost reduction. The paper concludes that the offshore services industry will continue to offer growth opportunities for developing countries not only among existing market players, but also a range of new countries. The industry has the potential to become an important source for employment and economic growth around the globe.

The offshore services value chain: upgrading trajectories in developing countries

This article analyses the offshore services industry using the global value chain approach. This industry has grown at a rapid pace over the last decade, driven principally by the search of businesses to reduce costs by unbundling and offshoring corporate services. This paper explores how developing nations have seized these growth opportunities. While developed countries consume the vast majority of global services, demand from developing economies and new end markets is beginning to grow. Supply is dominated by India, which in 2009 had 45% of the global market share for offshore services. Indian firms occupy most value chain segments and they have expanded in the South to serve both domestic and export markets. Although the quality and quantity of human capital remains the key factor in the location of offshore services, formal education is being supplemented by demand-driven training and compliance with required international professional certifications and performance standards.

WINE INDUSTRY IN CHILE

The following sections are included:Industry OverviewBackground Information on the FirmDescription of the Value ChainPre-production: Vineyard Preparation and Grape Production (Viticulture)Production: Wine-making (Viniculture)Post-production: Distribution and Marketing and SalesServices along the Value ChainPre-production: Vineyard Preparation and Grape Production (Viticulture)Production: Wine-making (Viniculture)Post-production: Distribution and Marketing and SalesBack Office Services and Workers Transversal ServicesOutsourcing, Bundling and other Aspects of Services SupplyPolicies Affecting the Value ChainSupportive Export-oriented PoliciesEfficient Logistics: Competitive Transportation, Modern Ports and Streamlined Customs OperationsHuman Capital Development and Labour RegulationsR&D and Variety DevelopmentInstitutionalisationAppendixReferences