What is the impact of labor displacement on management consulting services?
General Economics
2021-01-01 v1 Economics
Abstract
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.
Keywords
Cite
@article{arxiv.2012.15144,
title = {What is the impact of labor displacement on management consulting services?},
author = {Edouard Ribes},
journal= {arXiv preprint arXiv:2012.15144},
year = {2021}
}