As communications and information technology improves, more and more service value chains will be subject to the same competitive scrutiny as manufacturing value chains. Providers will reexamine what can be outsourced and what ought to be retained. As economist Alan Blinder has argued, all impersonal services that can be delivered electronically at a distance, with little or no degradation in quality, are potentially vulnerable.16 What will be harder to replace are human creativity, customisation, and human empathy.

