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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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    References listed on IDEAS

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    1. Miss Catriona Purfield, 2006. "Mind the Gap—Is Economic Growth in India Leaving Some States Behind?," IMF Working Papers 2006/103, International Monetary Fund.
    2. Kokichi Ito & Li Zhidong & Ryoichi Komiyama, 2005. "Asian Energy Outlook to 2020 : Trends, Patterns and Imperatives of Regional Cooperation," Energy Working Papers 22130, East Asian Bureau of Economic Research.
    3. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters, in: Bengt-Åke Lundvall & Patarapong Intarakumnerd & Jan Vang (ed.), Asia’s Innovation Systems in Transition, chapter 10, Edward Elgar Publishing.
    4. Mark Kobayashi-Hillary, 2005. "Outsourcing to India," Springer Books, Springer, edition 0, number 978-3-540-24794-4, February.
    5. 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.
    6. 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.
    7. Tiziana Bonapace, 2005. "Regional Trade and Investment Architecture in Asia-Pacific : Emerging Trends and Imperatives," Trade Working Papers 22085, East Asian Bureau of Economic Research.
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    Cited by:

    1. Nagesh KUMAR, 2008. "Internationalization of Indian Enterprises: Patterns, Strategies, Ownership Advantages, and Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 242-261, December.
    2. Mukul Asher, 2006. "India’s Rising Role in Asia," Working Papers id:727, eSocialSciences.
    3. Nagesh Kumar, 2007. "Investment Provisions in Regional Trading Arrangements in Asia : Relevance, Emerging Trends, and Policy Implications," Trade Working Papers 22109, East Asian Bureau of Economic Research.
    4. Sachin Chaturvedi, 2008. "Emerging Patterns in Architecture for Management of Economic Assistance and Development Cooperation : Implications and Challenges for India," Development Economics Working Papers 22092, East Asian Bureau of Economic Research.

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    More about this item

    Keywords

    Outsourcing; Offshoring; India; Demographic Trends; globalization;
    All these keywords.

    JEL classification:

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

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