World Investment Report 2004

The Shift Towards Services

image of World Investment Report 2004

The World Investment Report is recognized worldwide as an authoritative source of information and analysis on Foreign Direct Investment (FDI). It focuses on FDI trends at the regional and country levels and emerging measures to improve its contribution to development. This year's report examines the shift of FDI towards services with a focus on the entry of Transnational Corporations into new service areas. It provides a special analysis of offshoring service activities and of key issues relating to national and international policies.



National policies

In July 2003, Infineon Technologies announced the establishment of three new centres, in Dublin (Ireland), Kista (Sweden) and Munich (Germany), to rationalize its customer logistics management that had, till then, been handled in 19 European locations. The same year, British Telecom set up two call centres in India, in New Delhi and Bangalore, to deal with directory inquiries, and DHL, one of the world’s leading logistics companies, announced that it would locate a centre in the Czech Republic to manage IT services for its entire European operations. Most of DHL’s IT activities in Switzerland and the United Kingdom would shift to Prague, creating 400 jobs to start with, and growing to 1,000 over two years. Together with DHL’s regional centres in Malaysia and the United States, the European centre would blend into a seamless IT infrastructure supporting the company’s global operations. Meanwhile, ACS (United States) announced that it was building a new 40,000 sq. ft. office complex in Accra, Ghana, to accommodate the growing demand for its data processing services that support clients in the communications, healthcare and insurance industries. In 2004, the Bank of America announced that it would establish a wholly-owned affiliate in Hyderabad, India, to undertake backoffice operations for its units in the United States. The affiliate would employ at least 1,000 people by mid-2005. The bank had previously outsourced software development to Indian companies such as Infosys Technologies in Bangalore and Tata Consultancy Services in Mumbai.


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