The rise of offshore outsourcing to India: Distinctive capabilities and low labor costs Available to Purchase

Outsourcing of information technology (IT) and financial services has changed enormously over the past decade. To date, India has been the principal winner in this offshore techno‐shift. Buoyed by the rise of data networks and satellite communications, the country has witnessed a boom in software applications development and IT services outsourcing since the liberalization of the Indian economy in 1991. Its blossoming technology services sector was helped further when the technology bubble burst in 2001 as Western companies started pruning their IT budgets and began shopping around for better value.