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8/3/2019 Preface to the Information Technology
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SEMINAR ON
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INTRODUCTION SCOPE SOURCE & INTERVIEW S INDIA IT/BPO DIFFERENT ROLES OF FDI IN IT/BPO DEFINITION OF FDI
EXTERNAL INFLUENCE OF FDI FDI IMPACT HOW FDI ACHIEVED IMPACT EXTERNAL FACTORS
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Offshore service includes IT and BPO relatedservices to remote location to leverage
differences in wage levels and availability ofskilled labor between the new location andformer. This sector has shown high growthover past two decades and has acceleratedsignificantly in past few years.
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Scope of IT/BPO includes looking at bothcaptive and third party outsourcing
arrangements . It does not involve domestic outsourcing . India have given importance to offshore
service. Measure the productivity
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Data was available from annual reports,company financial statements, and through
interviews The outstanding industry dynamics and
impacts of external factors were based onmore than 40 interviews with companyexecutives , governmental officials , industryanalysts and industry associations.
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India is the worlds largest supplier of IT & BPOservices accounting for 25% of the globalmarket.MGI estimates current global off shoring
market to be roughly $32billion in size. IT offshore service accounts for 80% of Indias
export and remaining 20 % with BPO services. It is projected that this sector will grow to over
US$200billion in size by 2008. India will notretain but also will gain further market shares.
India is one of the few country which is able tosupply the sector that is projected rate of growthwithout causing wage inflation.
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IT SEGMENT
Impact has been positive
but limited shows strong growth since
1980 prior to receiving FDI.
BPO SEGMENT
Has very strong positive
impact. Limited amount of FDI is
received since the mid of1990s
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Foreign Direct Investment( FDI) is a type ofinvestment that involves the injection of
foreign funds into an enterprise that operatesin a different country of origin from theinvestor.
FDI is classified into two they are inward FDIand outward FDI.
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Country-specific factorsI. Labor marketII. Government policiesIII. The Indian DiasporaIV. IncentivesV. Supplier base Negative impactsI. infrastructureII. conflict with Pakistan Global factors Barriers with companies
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ECONOMIC IMPACT Sector creation Sector productivity
Sector output Sector employment Suppliers spilloversDUSTRIBUTION OF FDI IMPACT
Companies Labor Consumers Government
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Sector creation
Industry dynamics Operational factors Transfer of best practices Suppliers spillovers
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Country specific factors Initial sector condition