Neweconomist on India's niche in globalization

When economists and politicians invoke examples of how emerging economies are shaping the global arena, they are most likely to point to the Red dragon. However, we would wise also to look elsewhere for emerging economies that have an astounding impact on the global economy and thus how we live today.

In the theoretical sphere of economics (is there any other?) you have the notion of the so-called BRIC countries (Brazil, Russia, India, and China) who are believed to have enormous influence on the global economy now and even more so in the future. See this report from Goldman Sachs.

"The results are startling. If things go right, in less than 40 years, the BRICs
economies together could be larger than the G6 in US dollar terms. By 2025
they could account for over half the size of the G6. Of the current G6, only the
US and Japan may be among the six largest economies in US dollar terms in
2050. "

As reported in the London based Neweconomist blog we are focusing on India and how the country has created a niche in the global economy of providing ground for the outsourcing of currently 44% of the global market for IT services and IT-based business processes. The original source of this information is this report from Deutche bank research describing India as the "back-office of the world."

"As the world’s most important offshoring
location the subcontinent dominates the international market for the outsourcing of
IT service ...

(...)

India’s key comparative advantage is its
availability of well-trained, English-speaking and inexpensive specialists."

If you want to dig further into the offshoring capabilities of India you can read these four articles from the Economist which provide a good overview of the off-shoring and outsourcing business in India.

India aims to become the back office for the world's banks - feb 2003

India becomes a defender of free trade - feb 2004

After the call-centre, now the IT department is off to India

(...) information-technology industry is already choking on its own success; but the boom has barely begun

India must truly be a force to be reckoned with.