IDEAS home Printed from https://ideas.repec.org/a/ids/ijbema/v5y2013i4p285-303.html
   My bibliography  Save this article

Offshore outsourcing and political risk: India in 2004

Author

Listed:
  • Niranjan Chipalkatti
  • Bruce Koch
  • Meenakshi Rishi

Abstract

The results of the 2004 Indian elections were surprising as the victory of the Congress party was unforeseen by most pre-poll and exit surveys. The unexpected political change, with an associated shift from a centre-right to a centre-left government presented an unanticipated discontinuity in the business environment. We examine whether US companies that had offshored to India faced heightened levels of political risk when election results were announced. A unique contribution of the paper is that we also examine whether US companies that offshored to India in early-2004, faced greater political risk than companies that offshored to the country in 2002 and 2003. Results indicate an increase in political risk as manifested as an increase in systematic risk. Companies that offshored in 2004 faced greater political risk as compared to companies that offshored earlier. Our findings validate the use of a political risk premium when evaluating offshore ITES projects.

Suggested Citation

  • Niranjan Chipalkatti & Bruce Koch & Meenakshi Rishi, 2013. "Offshore outsourcing and political risk: India in 2004," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 5(4), pages 285-303.
    • Handle: RePEc:ids:ijbema:v:5:y:2013:i:4:p:285-303
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=56708
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbema:v:5:y:2013:i:4:p:285-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=249 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.