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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

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 (current 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.

Suggested Citation

  • Sarosh Kuruvilla & Aruna Ranganathan, 2008. "Economic Development Strategies and Macro-and Micro-Level Human Resource Policies: The Case of India's “Outsourcing†Industry," ILR Review, Cornell University, ILR School, vol. 62(1), pages 39-72, October.
    • Handle: RePEc:sae:ilrrev:v:62:y:2008:i:1:p:39-72
    DOI: 10.1177/001979390806200103
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    References listed on IDEAS

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    Cited by:

    1. Yeongjun Yeo & Chansoo Park, 2018. "Managing Growing Pains for the Sustainable Growth of Organizations: Evidence from the Growth Pathways and Strategic Choices of Korean Firms," Sustainability, MDPI, vol. 10(10), pages 1-24, October.
    2. Kuruvilla, Sarosh & Noronha, Ernesto, 2016. "From pyramids to diamonds: legal process offshoring, employment systems, and labor markets for lawyers in the United States and India," LSE Research Online Documents on Economics 65136, London School of Economics and Political Science, LSE Library.
    3. Micheline Riemsdijk, 2013. "Talent Acquisition in the IT Industry in Bangalore: A Multi-Level Study," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 478-490, September.
    4. Tashlin Lakhani & Sarosh Kuruvilla & Ariel Avgar, 2013. "Across Boundaries: The Global Challenges Facing Workers and Employment Research 50th Anniversary Special Issue," British Journal of Industrial Relations, London School of Economics, vol. 51(3), pages 440-472, September.
    5. Jean Jenkins, 2013. "Across Boundaries: The Global Challenges Facing Workers and Employment Research 50th Anniversary Special Issue," British Journal of Industrial Relations, London School of Economics, vol. 51(3), pages 623-643, September.
    6. Beladi, Hamid & Dutta, Meghna & Kar, Saibal, 2016. "FDI and Business Internationalization of the Unorganized Sector: Evidence from Indian Manufacturing," World Development, Elsevier, vol. 83(C), pages 340-349.

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