The next India : outsourcing IT: challenges and opportunities
Document type: article
Download file(s):
138184 (147 KB)
Abstract:
The current economic crisis has had severely negative impacts on developing countries. However, exports of IT-related services from developing countries could increase. Because firms in industrialized countries are now struggling to find ways to reduce costs, outsourcing IT services is an increasingly attractive option. Many developing countries are already engaged in IT services, including some of the poorest nations, such as Bangladesh, Kenya, Nepal and Uganda. Others, such as Afghanistan, Liberia, Myanmar and Rwanda, are preparing to enter this industry. IT-enabled services, also known as business process outsourcing (BPO), include manual data entry, contact centre services or call centres, administrative tasks, including such work as handling airline or hotel reservations, and animated film production. Eight factors determine the industry’s success: (1) government vision and policies, including funding and tax benefits; (2) human capital, including national orientation and traditions, quantity, composition, language skills, and managerial skills; (3) wages; (4) quality of life, since talented professionals tend to concentrate in desirable locations; (5) linkages, which emerge between individuals, between work groups, between firms, and between nations due to geographic, cultural, linguistic, or ethnic connections; (6) technological infrastructure; (7) capital, which can come from domestic and foreign sources; and (8) industry characteristics. However, in the case of India, during its industry’s formative period of growth, several of these factors were absent or weak.
Authors:
Tjia, P.
Country:
India
Category:
General
End Page:
23
Serial number:
14
ISSN:
1874-2033
Journal:
The Broker
Keywords:
information and communication technologies
,
globalization
Language:
eng
Organization:
The Broker
Year:
2009
Region:
Asia
,
South Asia
Right:
© 2009 IDP. This article has been licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported license.
Subject:
Economic Development and Trade
Start Page:
21
Title:
The next India : outsourcing IT: challenges and opportunities