South Asia Monitor: Outsourcing: The New Big Thing or the Slippery Slope? - December 01, 2004

December 1, 2004

Software and "outsourced" services account for 3 percent of India's economy but are growing at 30 percent a year and are a major export earner. The controversy over U.S. policy toward outsourcing—one of India’s economic success stories—centers on the states more than on the federal government. Restrictive legislation is unlikely to cause significant change in this lucrative practice. The trend points toward a more intimately integrated world, in which high technology industries continue to globalize despite periodic political backlash.