The India Effect

India's offshoring sector has been driven by cheap labour and a competitive culture. But as the country's low-cost advantage diminishes, Indian firms will need to find innovative ways to stay ahead of new emerging economies. With an annual economic growth rate of around seven to eight per cent, India has emerged as a future economic superpower. But is the country's impressive growth down to lower costs alone? Once India's cost advantage diminishes, will future growth shift to companies in other low-cost economies? We believe that cheap labour is the beginning, not the end.

Vedala, S., Peters, B.K.G., Laljani, N. (2006) The India Effect, European Business Forum, (EBF), Autumn, Issue 26, pp. 31 - 35

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