Source: New York Times

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Source New York Times
2
Cambodia

• Cambodia joins the WTO
• Markets forced to open too wide
• Will help creation of modern legal framework
• Four fifths of Cambodias exports are garments

Source NY Times
3
Globalization of industry

• Standardization of software
• Communication technologies
• Creation of global work platforms
• Establishment of criteria that grant legitimacy
  CMM
• Government policies allowing for easier movement
  of labor
• High personnel costs in software development
• Shortage of skilled workers in major markets

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India

• Low cost labor supply
• Lack of domestic market
• Common language (to U.S. and U.K)
• Initiative of organizations
• Role of NASSCOM
• Role of State Governments
• Indian diaspora
• Role of Central Government
• Lack of bureaucracy
• IT Taskforce, Software zones
• Tax exemptions of export revenues
• Investment in education
• Early restrictions allowed for establishment of
  industry, subsequent reforms permitted
  spillovers, created efficiency through competition

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Challenges

• Increasing costs of labor (NASSCOM estimates
  equalization in 15 years)
• Firm positioning combined with slow industry
  growth
• Poor infrastructure
• Political risk
• Nearshoring trends in Europe Where English
  doesnt rule
• Reverse investments quality issues
• Rising threats from China (Dalian software park),
  Russia and Vietnam
• Benefits of globalization must permeate to the
  poor
• Congress party comes to power
• IT sector has 1 m employees out of labor force of
  430m people
• Has between 100m 200 m unemployed people

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Additional reading

• Origin of species Tom Friedman, New York Times
• The Great Indian Dream Tom Friedman, New York
  Times
• Software Will outsourcing hurt Americas
  supremacy Business Week, March 2004