Abstract:

This article was written not only from the perspective of a student involved in research activities but also from the perspective of an entrepreneur. As student of economic science I know that the main goal of a company is to obtain profit. From the perspective of an entrepreneur involved in provision of services I am aware that my company should not incur recurrent operational losses. Thus, operational losses are accepted if these are incurred over a limited period of time, one / two years, however operational losses spread over a longer period of time cannot be handled by an entrepreneur that is not member of a multinational group of companies. But what happens in case of multinational companies involved in provision of IT services (i.e. software development)? In the age of digitalisation is it possible that a company member of a multinational group involved in provision of IT services to incur recurrent losses?