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Economic Development Strategies and Macro- and Micro-Level Human Resource Policies: The Case of India’s "Outsourcing" Industry

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  • Sarosh Kuruvilla
  • Aruna Ranganathan
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    Abstract

    This detailed case study of India’s "outsourcing" industry illustrates the challenges in linking macro and micro human resource policies with an economic development strategy based on export-oriented services. The rapid expansion in the outsourcing of services to India has raised the possibility that this sector will be a key engine of India’s economic growth. Based on extensive field research carried out over a four-year period, the authors of this study argue that four interrelated human resource policy challenges threaten the outsourcing industry’s growth: two "macro" problems (cur¬rent skill shortages and the inability of the country to produce higher levels of skills for the long-term growth and sustainability of the industry), and two micro problems (very high levels of employee turnover and rapidly increasing employee costs). The authors evaluate current policy responses and suggest options.

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 62 (2008)
    Issue (Month): 1 (October)
    Pages: 39-72

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    Handle: RePEc:ilr:articl:v:62:y:2008:i:1:p:39-72

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    Cited by:
    1. Agrawal, Narendra M. & Khatri, Naresh & Srinivasan, R., 2012. "Managing growth: Human resource management challenges facing the Indian software industry," Journal of World Business, Elsevier, vol. 47(2), pages 159-166.
    2. Schwalje, Wes, 2011. "A Conceptual Model of National Skills Formation for Knowledge-based Economic Development," MPRA Paper 30302, University Library of Munich, Germany.
    3. Lahiri, Somnath & Kedia, Ben L., 2011. "Co-evolution of institutional and organizational factors in explaining offshore outsourcing," International Business Review, Elsevier, vol. 20(3), pages 252-263, June.
    4. Schwalje, Wes, 2011. "Knowledge-based Economic Development as a Unifying Vision in a Post-awakening Arab World," MPRA Paper 30305, University Library of Munich, Germany.

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