Progress 10/01/04 to 10/01/09
Outputs
OUTPUTS: The offshoring of business processes was found to be having a significant though hard to measure impact on both metropolitan and non-metropolitan U.S. Whereas when began the research began it was believed that non-metropolitan America, which was experiencing significant growth in call center and lower-skilled activities, would be most affected. After conducting interviews, it was discovered that while call centers were experiencing international competition, the most significant impact was on more highly skilled workers such as accountants, engineers, analysts, and scientists that are differentially concentrated in urban and suburban areas. Thus the offshoring phenomenon is likely to have less impact upon services such as call centers that are differentially located in rural areas. PARTICIPANTS: This project was done in conjunction with Rafiq Dossani of the Asia/Pacific Research Center, Stanford University TARGET AUDIENCES: During the project period, I was invited to present my results to a Committee appointed by the National Science Foundation and was a member of a committee appointed by the Association for Computing Machinery to examine the implications of offshoring on the employment of scientists and engineers. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
The greatest impact of the research was in raising awareness of the implications of offshoring. The results of the research included an opportunity to provide Congressional testimony and interviews in newspapers. Though these do not have direct impacts, they have significant indirect impacts by providing more scientific information to the policy-making process.
Publications
- 140. Kenney, M., A. Nelson, and D. Patton. 2009. The University-centric High-tech Cluster of Madison, United States. In J. Potter and G. Miranda (Eds.) Clusters, Innovation and Entrepreneurship (Paris: OECD) pp. 167-192.
- 139. Kenney, M. and D. Patton. 2009. Reconsidering the Bayh-Dole Act and the Current University Invention Ownership Model. Research Policy 38, (9):1407-1422.
- 138. Kenney, M., S. Massini and T. P. Murtha. 2009. Offshoring administrative and technical work: New fields for understanding the global enterprise. Journal of International Business Studies (forthcoming).
- Benhamou, E. et al. 2009. Assessing the Impacts of Changes in the Information Technology R&D Ecosystem: Retaining Leadership in an Increasingly Global Environment (Washington, DC: National Academies Press).
- Dossani, R. and M. Kenney. 2009. Service Provision for the Global Economy: The Evolving Indian Experience. Review of Policy Research 26, (1,2): 77-104.
- Reproduced in L. Labrianidis (Ed.). 2008. The Moving Frontier: The Changing Geography of Production in Labour-Intensive Industries (Aldershot, UK: Ashgate): 255-280.
|
Progress 01/01/08 to 12/31/08
Outputs
OUTPUTS: I continued interviewing individuals in India and the U.S. on the progress of offshoring and the impacts on the U.S. economy. This research is ongoing and I expect further results next year. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
The impact of the research has been significant: 1. I was a keynote speaker on business process offshoring in Japan and presented a paper at the Academy of Management Annual Meetings (August 9, 2008). 2. I continued my work on a National Research Council panel examining the evolution of the US IT infrastructure. 3. I organized a session on outsourcing at the American Sociological Association Annual Meeting (August 2, 2008). 4. I have been interviewed by the press in the U.S. and Europe regarding the evolution of the offshoring of business processes.
Publications
- Mullan, J. E., M. Rangel, O. F. Contreras, and M. Kenney. 2008. Mexico en LA economia mundial de los servicios de tecnologias de LA informacion. Comercio Exterior 58 (10): 668-681.
- Dossani, R. and M. Kenney. 2008. Implications of Globalization for Software Engineering. In National Academy of Engineering (Ed.) The Offshoring of Engineering: Facts, Unknows, and Potential Implications (Washington, DC: National Academies Press): 49-68.
- Mullan, M. Kenney, R. Dossani. 2008. Mexico and the Globalization of Services: Outflanked Once Again Economia Mexicana 17 (2): 171-202.
|
Progress 01/01/07 to 12/31/07
Outputs
I have created a database of all major US software and software services firms that have offshored work to India. I have continued to undertake interviews in India regarding the types of work that is being offshored to India. I have been asked to give numerous presentations to groups including the National Academy of Sciences, National Academy of Engineering, Testimony to the House Subcommittee on Technology and Innovation. I am organizing a invited thematic panel at the American Sociological Association meetings in 2008.
Impacts
It is my conclusion that offshoring will not have a great direct impact on rural America because activities such as call centers are increasingly likely to remain in this country because of language and culture issues. In particular, India is finding it difficult to train a sufficient number of proficient English speakers. The locus of call centers for the US market seems to be more likely to be offshored to the Philippines or Mexico. However, for the larger US economy offshoring of services is likely to have a powerful effect on service jobs particularly in IT services, but also in many other fields. The Experiment Station monies provided me with the resources to undertake this ongoing project.
Publications
- Kenney, M. 2007. Testimony at Hearing Entitled "The Globalization of R & D and Innovation, Pt. III: How do Companies Choose Where to Build R & D Facilities?" held by the Subcommittee on Technology and Innovation, Committee on Science and Technology, U.S. House of Representatives October 4.
- Dossani, R. and Kenney, M. 2007. "The Next Wave of Globalization: Relocating Service Provision to India." World Development 35, 5: 772-791.
- Dossani, R. and Kenney, M. 2007. Business Week Debate Room "Has Offshoring Peaked." Online
|
Progress 01/01/06 to 12/31/06
Outputs
During the last year, I have continued research in the area. This has included a 2-week trip to India to interview various organizations on the progress of the Indian business process industry. The progress of the Indian industry has a direct effect upon services employment in U.S. rural areas.
Impacts
1. I have organized a conference on December 12, 2006 that will be attended by over 100 academics and business persons. 2. I was a keynote speaker on business process offshoring at venues in the UK and Denmark, and at the Universities of Colorado; California, Irvine; Manchester; and Lancaster. I made a presentation to the President's Council of Advisors on Science and Technology (PCAST), Subcommittee on Networking and Information Technology. 3. I was appointed to a National Research Council panel examining the evolution of the US IT infrastructure. 4. I contributed a paper on the evolution of the Indian IT industry to a National Academy of Engineering panel examining the future of U.S. high-technology industry. 5. I have been interviewed by the press in the U.S. and Europe regarding the evolution of the offshoring of business processes.
Publications
- M. Kenney and R. Dossani. 2006. 'Digitizing Services: What Stays Where and Why.' In S. Bagchi-Sen and H.L. Smith (eds.) Economic Geography: Past, Present and Future (Oxon, UK: Routledge): 136-144.
- M. Kenney et al. 2006. 'Chapter 3: The Country Perspective.' In W. Aspray, F. Mayadas, and M.Y. Vardi (Eds.) Globalization and Offshoring of Software: A Report of the ACM Job Migration Task Force (New York: ACM).
- M. Kenney et al. 2006. 'Chapter 4: Corporate Strategies for Software Globalization.' In W. Aspray, F. Mayadas, and M.Y. Vardi (Eds.) Globalization and Offshoring of Software: A Report of the ACM Job Migration Task Force (New York: ACM).
- R. Dossani and M. Kenney. 2006. 'The Relocation of Service Providers to Developing Nations: The Case of India.' In J. Zysman and A. Newman (Eds.) How Revolutionary Was the Digital Revolution (Stanford: Stanford University Press): 193-216.
- R. Dossani and M. Kenney. 2007 (Forthcoming). 'Reflections upon 'Sizing the Emerging Global Labor Market'.' Academy of Management Perspectives.
- R. Dossani and M. Kenney. 2007 (Forthcoming). 'The Next Wave of Globalization: Relocating Service Provision to India.' World Development.
|
Progress 01/01/05 to 12/31/05
Outputs
During the last year, I conducted interviews in India regarding outsourcing of service work. This consisted of 40 interviews with executives. I also have been examining the Census of Manufacturing data to distinguish between metropolitan and non-metropolitan counties and the types of service work being undertaken in both. Unfortunately, the data on service activities if quite weak. I also conducted interviews with in a Yolo county economic development director on the significance of service activities such as call center provision for the county economy.
Impacts
Remote service provision particulary call centers and data entry operations has become an important economic development strategy in non-Metro counties. Globalization threatens this strategy because remote locations with lower labor cost threaten to replace U.S. non-Metro workers with lower-cost workers overseas. In terms of call centers the threat appears to be Canada and the Philippines, whereas for data entry India may be a more attractive alternative. The results of this research will be of value to economic development directors in non-Metro and Metro counties.
Publications
- Kenney, M. and R. Dossani. 2005. "Globalization and the New Economy in Rural America" Paper presented at ERS USDA/Farm Foundation Conference on Global Restructuring and Rural America, Washington, DC (June 6).
|
Progress 01/01/04 to 12/31/04
Outputs
During the last year, I completed interviews in India regarding offshoring. I have done an extensive literature search on the transfer of services to Rural America. I also conducted interviews in Fargo, North Dakota on the importance of services for the local government.
Impacts
Rural America has been losing manufacturing jobs more quickly than urban areas. These have been only partially replaced by the transfer of service jobs, however these jobs such as call center and data entry employment were expected to replace the lost manufacturing employment. The movement of services offshore could result in a relocation of jobs from Rural America to India.
Publications
- Dossani, R. and M. Kenney (2004). "Lift and Shift: Moving the Back Office to India." Information Technologies and International Development (Winter), 1(2): 21-37.
|
|