Economic Development Strategies and Macro- and Micro-Level Human Resource Policies: the Case of India’s “Outsourcing” Industry
Cornell University ILR School
DigitalCommons@ILR
Articles and Chapters ILR Collection
10-1-2008
Economic Development Strategies and Macro- and Micro-level Human Resource Policies: The Case of India’s “Outsourcing” Industry
Sarosh Kuruvilla
Cornell University, sck4@cornell.edu
Aruna Ranganathan
Massachusetts Institute of Technology
Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/articles Part of the Human Resources Management Commons
This Article is brought to you for free and open access by the ILR Collection at DigitalCommons@ILR. It has been accepted for inclusion in Articles and Chapters by an authorized administrator of DigitalCommons@ILR. For more information, please contact jdd10@cornell.edu.
Economic Development Strategies and Macro- and Micro-level Human Resource Policies: The Case of India’s “Outsourcing” Industry
Abstract
This detailed case study of India 's "outsourcing" industry illustrates the challenges in linking macro and micro human resource policies with an economic development strategy based on export-oriented services. The rapid expansion in the outsourcing of services to India has raised the possibility that this sector will be a key engine of India 's economic growth. Based on extensive field research carried out over a four-year period, the authors of this study argue that four interrelated human resource policy challenges threaten the outsourcing industry 's growth: two "macro" problems (current skill shortages and the inability of the country to produce higher levels of skills for the long-term growth and sustainability of the industry), and two micro problems (very high levels of employee turnover and rapidly increasing employee costs). The authors evaluate current policy responses and suggest options.
Keywords
India, outsourcing, human resources, economic development
Disciplines
Human Resources Management
Comments
Suggested Citation Kuruvilla, S., & Ranganathan, A. (2008).
DigitalCommons@ILR
Articles and Chapters ILR Collection
10-1-2008
Economic Development Strategies and Macro- and Micro-level Human Resource Policies: The Case of India’s “Outsourcing” Industry
Sarosh Kuruvilla
Cornell University, sck4@cornell.edu
Aruna Ranganathan
Massachusetts Institute of Technology
Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/articles Part of the Human Resources Management Commons
This Article is brought to you for free and open access by the ILR Collection at DigitalCommons@ILR. It has been accepted for inclusion in Articles and Chapters by an authorized administrator of DigitalCommons@ILR. For more information, please contact jdd10@cornell.edu.
Economic Development Strategies and Macro- and Micro-level Human Resource Policies: The Case of India’s “Outsourcing” Industry
Abstract
This detailed case study of India 's "outsourcing" industry illustrates the challenges in linking macro and micro human resource policies with an economic development strategy based on export-oriented services. The rapid expansion in the outsourcing of services to India has raised the possibility that this sector will be a key engine of India 's economic growth. Based on extensive field research carried out over a four-year period, the authors of this study argue that four interrelated human resource policy challenges threaten the outsourcing industry 's growth: two "macro" problems (current skill shortages and the inability of the country to produce higher levels of skills for the long-term growth and sustainability of the industry), and two micro problems (very high levels of employee turnover and rapidly increasing employee costs). The authors evaluate current policy responses and suggest options.
Keywords
India, outsourcing, human resources, economic development
Disciplines
Human Resources Management
Comments
Suggested Citation Kuruvilla, S., & Ranganathan, A. (2008).
References: Source: NASSCOM Strategic Review (2007). aNew segment called Engineering Services, R&D, and Software Products created (earlier encompassed by software and BPO segments). bProjections (made before the creation of the new segment). 2.7% 2.9% 3.2% 3.5% 4.1% 4.8% 5.4% Source: NASSCOM Strategic Review (2007)