Summary

The world of business is changing, and e-business and outsourcing are the two most visible expressions of that change. The trigger comes from both internal and external forces: internally, a firm's own quest for improvement and efficiency; externally, mounting competitive pressure and ever more demanding customers.

The electronic mode of business (e-business) offers the firm the promise of serving customers anything, anywhere and anytime, dismantling the time and space constraints on its performance. Yet, high-tech as it is, e-business suffers from low personal touch, so customers are not attended to on an interpersonal basis; there are also concerns over the security of e-transactions and the privacy of those who transact online. The benefits of e-commerce, moreover, have accrued unevenly across countries and across regions within a country. …