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arXiv · 2012.15144

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

Edouard Ribes
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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.

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Edouard Ribes. 2020-12-30. What is the impact of labor displacement on management consulting services?. https://arxiv.org/abs/2012.15144

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