By K. Joseph
Drawing from the special case reviews of India and 5 ASEAN nations, this quantity establishes the complementary position of innovation procedure and alternate regime in selling construction and use of ICT and attracts classes for different constructing nations that followed a liberal alternate regime to meet up with the ICT revolution.
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Extra info for Information Technology, Innovation System and Trade Regime in Developing Countries: India and the ASEAN
No wonder India, with its large pool of skilled manpower, has emerged as a preferred location in the international division of labor in knowledge-intensive industries as well as in BPOs. India is not the only country being benefited from opportunities offered by BPOs. Countries like China, Philippines and others are also emerging as providers of BPO services to the developed countries. Given the fact that BPO services are not very skill intensive and most of the required skill could be acquired in a relatively short span of time, the developing countries need to adopt appropriate policies and institutional arrangements to exploit this growing opportunity and avoid the wasteful competition among themselves.
As Indian software enterprises establish their credentials and competence, they are consciously seeking fair value for their work. This, however, may be applicable for leading companies such as TCS, Infosys, HCL Technologies, WIPRO, Satyam Computer Services, which are providing higher-end programming solutions to their clients. Infosys has successfully renegotiated its per man-hour charges with its clients. It reportedly commands $90 per hour (Kumar and Joseph 2005). Indian companies have also managed to develop a number of proprietary software products.
A number of even smaller software companies have developed packaged software, which is sold in domestic market. 2 per cent. Since the conventional measures of innovation like R&D intensity (measured as research expenditure as proportion of sales) has certain limits in capturing innovation in a service sector like ICT, a study (Joseph and Abraham 2005) developed an Index of Claimed Technological Competence (ICTC) using firm-level information on their areas of specialization. The theoretical base of the index has been drawn from 28 Information Technology, Innovation System and Trade Regime the literature on technological opportunity.