This article examines companies’ and public sector organisations’ external restructuring processes, with consideration of emerging or lengthening value chains and network relationships in the service sector. Focusing on two business functions — software development in the IT industry and IT services for public sector organisations — the article describes the types of inter-organisational relations that emerge and analyses the impact of restructuring on employment conditions and work organisation. The business functions clearly differ according to the form that restructuring takes and with regard to the impact of restructuring on work and employment. Common trends include increased insecurity, growing flexibility demands and higher levels of standardisation and formalisation of work.

This article analyses the ways in which creative crowdwork is managed and controlled within social and economic power relations. It presents findings from a research project on creative crowdworkers focussing on aspects of management and control. The research shows that the design of the platforms and the strategies of their operating companies clearly structure the triangular relationship between platform, clients and workers. In addition to bureaucratic rules and surveillance exercised by the platform, rating opportunities and other control features utilised by clients strongly impact on crowdworkers’ time use, income and creativity and thus on their working and living conditions.

This article analyses how companies that provide public services respond to liberalization, privatization and marketization. The empirical research is based on 23 company case studies from four sectors and six countries. The case studies involved 185 interviews with managers, trade union and works council representatives and workers. Company reactions include mergers and acquisitions, internationalization and the diversification of supply; the diversification of customer relations, including new pricing policies; a reduction of production costs through concentration, outsourcing and the introduction of new technology; and the reduction of employment and the payment of lower wages (through lower wages for new employees, the creation of independent subsidiaries and outsourcing). Overall, the case studies show that the main goal, the reduction of production costs, has been achieved at the cost of workers, many of whom have experienced liberalization and privatization as the deterioration of employment and working conditions. The impact on productivity and quality were mixed.

This paper analyses the impact of external restructuring along value chains (including outsourcing, relocation and spatial concentration of activities) on work and employment. Drawing on findings of a European research project covering manufacturing and service industries, the paper highlights the dynamics of value chain reorganisation. Regarding employment consequences, it is argued that external restructuring leads to a fragmentation of employment and work as labour processes are stretched over organisational boundaries and workforces are divided by different employment contracts and terms and conditions. Generally, employment and working conditions worsen downstream in the value chain. However, because of increasing competition within value chains and networks, externalisation often no longer cushions the workforce of core firms against pressures and risks.

This article discusses various aspects of labour processes in services characterized by value chains that cross organizational, company, regional or national boundaries. Starting from value chain analysis it first addresses the main conceptual issues in the investigation of service value chains and networks from a labour process perspective. Second, it highlights three particular themes in the analysis of the labour process in services and illustrates these with empirical examples: modularization of services and codification of knowledge, organizational flexibility and flexible employment, and the concurrence of co-operation and competition. In the conclusion, the article sketches significant characteristics of services and service work that need to come into focus in value chain and network analysis from a labour process perspective.