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Business process outsourcing : the Indian experience as an offshore location

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Shashank Bhide & B.P. Vani & Meenakshi Rajeev, 2006. "Business process outsourcing : the Indian experience as an offshore location," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 43(1), pages 221-236, June.
  • Handle: RePEc:phs:prejrn:v:43:y:2006:i:1:p:221-236
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/244/619
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    References listed on IDEAS

    as
    1. Frederic S. Mishkin, 1996. "The Channels of Monetary Transmission: Lessons for Monetary Policy," NBER Working Papers 5464, National Bureau of Economic Research, Inc.
    2. Frederic S. Mishkin, 1995. "Symposium on the Monetary Transmission Mechanism," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 3-10, Fall.
    3. Gruen, David & Romalis, John & Chandra, Naveen, 1999. "The Lags of Monetary Policy," The Economic Record, The Economic Society of Australia, vol. 75(230), pages 280-294, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    BPO; knowledge process outsourcing; IT-enabled services; call center;

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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