What is the impact of labor displacement on management consulting services?

• Tác giả: Edouard Ribes
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.14 Factors affecting production
• Thông tin xuất bản: 2020
• Bộ sưu tập: Metadata
• ID: 165913

Tóm tắt

Labor displacement off-or nearshore is a performance improvement instrument that currently sparks a lot of interest in the service sector. This article proposes a model to understand the consequences of such a decision on management consulting firms. Its calibration on the market of consulting services for the German transportation industry highlights that, under realistic assumptions, labor displacement translates in price decrease by-0.5% on average per year and that for MC practices to remain competitive/profitable they have to at least increase the amount of work they off/nears shore by +0.7% a year.