Determining Comparative Advantage In Services Outsourcing: The Human Capital Edge
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Overview: The advent of the internet and the revolution in telecommunications technology revolution has lead to a paradigm shift in the way in which business is carried out the world over and has lead to the increasing importance of services outsourcing in world trade. A key feature of services outsourcing is that it leverages on international differences in wages and as a result many developing economies, most notably India, have become leaders in this segment. Internationally services outsourcing is a huge and growing market and many other nations both developing and developed are eager to get a share of this pie.