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Demographic Complementarities and Outsourcing : Implications and Challenges for India

  • Mukul G. Asher


  • Amarendu Nandy
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    This paper analyses the implications of differing global demographic trends for Indias competitiveness in outsourcing and offshoring. It also briefly notes the implications of differing demographic trends among the Indian states. The paper argues that demographic complementarities with high-income countries provide India with one-time opportunity to sustain its growth rate and occupy all segments of global outsourcing and offshoring activities. India has used the labor cost advantage to gain reasonable market share in these activities. It however faces serious internal and external challenges in sustaining its international competitiveness, particularly with respect to labor cost. With sustained focus on human resource development, diversification and upgradation policies India can continue to atleast maintain its global market share, and help nurture globally competitive companies.

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    Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 22082.

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    Date of creation: Jan 2006
    Date of revision:
    Handle: RePEc:eab:macroe:22082
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    1. Jacob Funk Kirkegaard, 2005. "Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather Than Off the Cliff!," Working Paper Series WP05-1, Peterson Institute for International Economics.
    2. Pradhan, Jaya Prakash, 2003. "Rise of service sector outward foreign direct investment from Indian economy: trends, patterns, and determinants," MPRA Paper 17078, University Library of Munich, Germany.
    3. Madanmohan Rao, 2005. "Book Review: "Business Process Outsourcing: The Competitive Advantage", Rick Click and Thomas Duening," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 4(02), pages 139-140.
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