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Business process outsourcing : the Indian experience as an offshore location

  • Shashank Bhide

    (National Council of Applied Economic Research (NCAER), New Delhi, India)

  • B.P. Vani

    (Institute for Social and Economic Change, Bangalore, India)

  • Meenakshi Rajeev

    (Institute for Social and Economic Change, Bangalore, India)

Business process outsourcing (BPO) generally refers to the operation of letting out the task of performing particular functions of an enterprise to another, often a third party and, in some cases, its own subsidiary. Under the pressure of nonavailability of manpower in the country of origin, many multinational companies (MNCs) decided to outsource their business processes to remote locations during the initial phase of globalization. In the Indian context, this process could throw down sturdy roots due to the encouraging supply-and-demand factors in the country. This paper takes a close look at the BPO industry in India, the service lines in which the country has specialized, and India's comparative advantages vis-à-vis competitor countries, e.g., China and the Philippines. The paper highlights the strengths and weaknesses of the Indian industry operating in this segment.

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Article provided by University of the Philippines School of Economics and Philippine Economic Society in its journal Philippine Review of Economics.

Volume (Year): 43 (2006)
Issue (Month): 1 (June)
Pages: 221-236

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Handle: RePEc:phs:prejrn:v:43:y:2006:i:1:p:221-236
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