Lance Knobel Notes a Contrarian View on Outsourcing
He writes:
Davos Newbies : Davos Newbies Home: Behind the Financial Times's subscription firewall, Vijay Joshi has a fascinatingly heterodox analysis of the limitations of India's outsourcing boom. His argument is that India desperately needs export-oriented manufacturing to supply the tens of millions of unskilled jobs the country requires. Outsourcing just doesn't cut it in terms of job creation:
Some people think that the information technology sector could be India's saviour. But its quantitative significance in the near term is extremely limited. IT-related output is currently less than 1 per cent of GDP. More significantly the sector employs less than 1m people. This could increase by another million by 2010. While undoubtedly helpful, it pales into insignificance when one considers that India's labour force will rise by 40m by 2010 to an estimated 450m people (and much of the rise will occur in backward states). We must remember also that growth of the IT sector will be constrained by the rate at which the supply of educated labour can be increased. Note that only 5 per cent of India's relevant age-group receives college education.
Posted by DeLong at 06:43 PM |"
Wednesday, November 17, 2004
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment