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Underlying model of business process outsourcing (BPO) in India

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  • Singh, Inderjeet
  • Singh, Lakhwinder
  • Singh, Preeti

Abstract

In the new policy regime, the regionalization of economic activities has taken place at a pace ever than before. The new regime is characterized by an interesting dichotomy, i.e., free global mobility of capital coupled with restricted mobility of labour. This dichotomous behaviour, with information technology enabled services acting as a catalyst, has altered the age-old industrial organization. It has given rise to new production and marketing organization systems. Restricted global mobility of labour has compelled the big corporate houses to outsource many of their processes and functions to those parts of the globe where the specialization and comparative cost advantage exists. In this context, the work is an attempt to capture the structure and dynamics of business process outsourcing, with special reference to India. The analysis is based on financial statements of seventy five companies covering a period of ten years. The broad finding of the work is that the emerging model of business process outsourcing industry is a “high-risk quick-buck model” that needs immediate policy intervention to ensure its sustainability and transparency.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33143.

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Date of creation: 31 Aug 2010
Date of revision: 01 Sep 2011
Handle: RePEc:pra:mprapa:33143

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Related research

Keywords: Business Process Outsourcing; Comparative Cost Advantage; Transaction Cost;

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  1. Madden, Gary & Savage, Scott J., 1998. "CEE telecommunications investment and economic growth," Information Economics and Policy, Elsevier, vol. 10(2), pages 173-195, June.
  2. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
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