1. Globalisation and outsourcing of services Helsinki Nordic SPPI Seminar 02.06.2009 Sanna Nieminen Statistics Finland

2. Sanna Nieminen 02.06.2009 2 International trade of services Services that go across borders are not recorded in customs International trade in services -statistics Rather new statistics Lots of practical problems Coverage issues The inquiry does not include transport, tourism and insurance services (data are already collected with other inquiries) Anyone using this statistics for SPPI?

3. Sanna Nieminen 02.06.2009 3 International trade in services -statistics 1/2

4. Sanna Nieminen 02.06.2009 4 International trade in services -statistics 2/2 Biggest export services 2007 Unclassified business services, incl. Commission trade, operational leasing and services within an enterprise group not classified elsewhere (8 117 mill. euro) Computer services (1 335) Architectural, engineering and other technical services (310) Research and development services (248) Biggest import services 2007 Unclassified business services, incl. Commission trade, operational leasing and services within an enterprise group not classified elsewhere (2 004 mill. euro) Research and development services (1 872) Advertising, market research and public opinion polling (1359)

5. Sanna Nieminen 02.06.2009 5 International service types Support services or core activities IT, payroll computation Whole service or subcontracting IT support or programming a part of a software Are these recorded similarly? Should these be treated similarly?

6. Sanna Nieminen 02.06.2009 6 International outsourcing of services Specific for certain type of services IT, transport Not possible in all services? Cleaning, taxi, restaurants, retail trade Large onetime purchase of services How to compile a price index?

7. Sanna Nieminen 02.06.2009 7 International businesses Complex group structures R&D, engineering, manufacturing, marketing, IT etc. might be in different countries Parent companies usually provide services to their subsidiaries in other countries (+national subsidiaries) Accounting, IT, legal services, strategic management etc. Are these recorded in any statistics? Should these be a part of the sample frame for SPPI? Transfer pricing

8. Sanna Nieminen 02.06.2009 8 Real world - are we missing something? Has anyone noticed these problems in their everyday work? Has anyone tried to measure export or import prices? Transport services? Export indices for road transport and railway transport? Are exported services different from domestic sales? Do businesses know when their customer is foreign? How to handle head offices? Are outsourced services that are produced on lower price included in hourly rates? for example in IT