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Demographic Complementarities and Outsourcing : Implications and Challenges for India

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  • Mukul G. Asher

    (RIS)

  • Amarendu Nandy

Abstract

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.

Suggested Citation

  • Mukul G. Asher & Amarendu Nandy, 2006. "Demographic Complementarities and Outsourcing : Implications and Challenges for India," Macroeconomics Working Papers 22082, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:macroe:22082
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    File URL: http://www.eaber.org/node/22082
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    References listed on IDEAS

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    1. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters,in: Asia’s Innovation Systems in Transition, chapter 10 Edward Elgar Publishing.
    2. 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.
    3. 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.
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    Cited by:

    1. Mukul Asher, 2006. "India’s Rising Role in Asia," Working Papers id:727, eSocialSciences.

    More about this item

    Keywords

    Outsourcing; Offshoring; India; Demographic Trends; globalization;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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