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In Pursuit of India’s Export Earning Advantage: An Assessment of IT-Enabled Services Industry

  • Meenakshi Rajeev

    (Institute for social and Economic Change)

  • B P Vani
Registered author(s):

    Services trade has assumed considerable importance for the Indian economy and the role of IT and IT-enabled services (ITES) is particularly worth mentioning in this context. The growth of this sector has not only helped to improve our current account balance, but also generated income and employment. This paper looks at the ITES industry particularly focusing on three major service lines, viz., customer care, financial and health care. It analyses India’s strengths and weaknesses vis-à-vis the competing countries. While the major strength of Indian BPO industry is the availability of cost-effective manpower, ironically, it has been observed that the major challenges faced by the industry in India today are mainly human resource related. The paper comes up with the possible measures necessary for keeping India’s competitive edge intact in this segment.

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    Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 197.

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    Length: 23 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:sch:wpaper:197
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    1. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    2. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123.
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