The Next Wave of Globalization: Relocating Service Provision to India

Services offshoring to India has grown dramatically in the last 10 years. It is linked to the earlier expansion of Indian software services exports, but has its own dynamic and workforce. Although domestic firms were early entrants, MNCs are central actors. Already, some work done in India resembles...

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Bibliographic Details
Published in:World development 2007-05, Vol.35 (5), p.772-791
Main Authors: Dossani, Rafiq, Kenney, Martin
Format: Article
Language:English
Subjects:
Asia
Developing countries
Economic conditions - International aspects
Economic growth
Entrepreneurs
Globalization
India
India - Economic conditions
LDCs
Market entry
offshoring
Outsourcing
Outsourcing - India
services
Studies
Subcontracting
Utilities
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Summary:Services offshoring to India has grown dramatically in the last 10 years. It is linked to the earlier expansion of Indian software services exports, but has its own dynamic and workforce. Although domestic firms were early entrants, MNCs are central actors. Already, some work done in India resembles that done in developed countries. To explain the dynamism and complexity of offshoring, a taxonomy of market participants is presented. Offshoring by small entrepreneurial US firms is highlighted as an emerging phenomenon. The conclusion argues that market entry by other developing countries is possible.
ISSN:0305-750X
1873-5991
DOI:10.1016/j.worlddev.2006.09.014