Offshoring leads to a segregated finance function structure in companies due to cost considerations and a shift towards the service sector.
Offshoring is the cause of the segregated structure of the finance function, as companies move their operations overseas to take advantage of lower costs. This results in a shift towards the service sector and away from manufacturing, impacting the structure of finance functions. Outsourcing and the establishment of shared service centers are also common practices that contribute to the segregation within the finance function.
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