Offshoring of It and it-enabled services: how far does India benefit from Its outsourcing industry
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Offshoring of It and it-enabled services: how far does India benefit from Its outsourcing industry
Palavras-chave: Offshoring, Information Technology, Innovation, India
Resumos Cadastrados
Resumo Inglês:
The literature on services offshoring typically focuses on the extent of job losses in the home
country. The impact on recipient countries is rarely examined in the western debate on
offshore outsourcing. The purpose of this paper is to analyze the impact of offshoring in
information technology (IT) and IT-enabled services (ITES), including business process
outsourcing (BPO), on employment creation and technology diffusion/innovation gap in
India. The paper concludes that being a service industry, the IT/ITES sector cannot be
expected to solve India’s massive unemployment problem. India needs to build laborintensive, manufactured products, not just services, in order to create jobs for millions of
educated but unemployed young Indians. Concerning technology diffusion/innovation gap, in
spite of impressive progress achieved by Indian service providers, they continue to lag behind
in high-end areas that call for creativity and innovation such as inventing innovative business
products, and creating new global markets for such products.
