An important influence of information technology on work is to reduce the importance of distance. The geographic distribution of employment changes significantly in many industries.
For example, some software companies have found that they can overcome the tightness of the local software developer market by sending projects to various countries where wages are much lower. You can now look for the finest IT services in St Louis, just check this link right here now.
Image Source: Google
In addition, such agreements can take advantage of time differences so that important projects can be processed most of the time. Companies can outsource their manufacturing and rely on telecommunications to keep marketing, research, development and sales teams in close contact with manufacturing groups.
In this way, technology enables a better division of labor between countries, which in turn affects the relative demand for different skills in each country. Technology allows different types of work and jobs to be separated.
Companies have more freedom to place their economic activities, which leads to increased competition between regions in the markets for infrastructure, labor, capital and other resources. It also opens the door to regulatory arbitration: companies are increasingly able to decide which tax authorities and other regulations to apply.
Information technology has facilitated the development of an expanded retail business where goods can be quickly ordered via telephone or computer networks and then shipped by suppliers via integrated transportation companies that rely heavily on computers and communication technology to manage their operations.