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Global ICT-Based Services Offshoring and Asia

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Innovative ICT Industrial Architecture in East Asia

Part of the book series: New Frontiers in Regional Science: Asian Perspectives ((NFRSASIPER,volume 17))

Abstract

The development of an information and communication technology since the 1990s has spawned new business model of outsourcing of software development, data entry, call center, administrative works, and many other services that centered on the US and European multinational firms. Such ICT-based services were not limited to advanced countries and spread out to offshore destinations in emerging countries. Initial subcontracting destinations included Ireland and Canada, as well as India in Asia. However, entering this century, various East Asian countries, such as China, the Philippines, and Vietnam, have attempted to enter this offshoring market, following India. Amidst the global expansion of offshoring destinations, India and East Asian nations have established a central position in offshoring destinations. East Asia is a production base for ICT hardware, but it has also emerged as a notable offshore destination for the ICT-based services industry. In this chapter, we define outsourcing and offshoring, organize the various businesses of ICT-based services, and attempt to grasp the overall picture. Next, we confirm condition of transfer of ICT-based service businesses from India to the Philippines, China, and Vietnam. Finally, we give an overview of features of ICT offshore industry of these countries in East Asia.

The original version of this chapter was revised. An erratum to this chapter can be found at DOI 10.1007/978-4-431-55630-5_11.

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Notes

  1. 1.

    NASSCOM has come to use business process management (BPM) as an evolved form of BPO. In such a case, the terms BPM or BPM/KPO are used. AVASANT issued a report that engineering service outsourcing is the next frontier in global sourcing (AVASANT 2011).

  2. 2.

    The explanation of export estimates for 2015 in the NASSCOM website is given for four ICT export categories: IT services, BPM, ER&D, and hardware. This reflects the recently newfound interest of NASSCOM on the development of the hardware industry (NASSCOM website India IT-BPM Exports, accessed 24 Mar 2015).

  3. 3.

    They pointed out three conditions for a new international division of labor. Firstly, a practically inexhaustible reservoir of disposable labor has come into existence in the developing countries over the last few centuries. Secondly, the division and subdivision of the production process is now so advanced that most of these fragmented operations can be carried out with minimal levels of skill easily learnt within a very short time. Thirdly, the development of techniques of transport and communication has created the possibility, in many cases, of the complete or partial production of goods at any side in the world (Fröbel, Heinrichs, and Kreye 1980, p. 13).

  4. 4.

    In the beginning, the index was named “offshore location attractiveness index.”

  5. 5.

    NASSCOM website: India IT-BPM Exports. Accessed 24 Mar 2015.

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Author information

Authors and Affiliations

  1. School of Asia 21, Kokushikan University, Tokyo, Japan

    Hitoshi Hirakawa

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  1. Hitoshi Hirakawa
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Correspondence to Hitoshi Hirakawa .

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Editors and Affiliations

  1. Kokushikan University , Tokyo, Japan

    Hitoshi Hirakawa

  2. Osaka City University, Osaka, Japan

    Nobuhiro Takahashi

  3. Temple University, Tokyo, Japan

    Ferdinand C. Maquito

  4. Nagoya Institute of Technology, Nagoya, Japan

    Norio Tokumaru

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Hirakawa, H. (2017). Global ICT-Based Services Offshoring and Asia. In: Hirakawa, H., Takahashi, N., Maquito, F., Tokumaru, N. (eds) Innovative ICT Industrial Architecture in East Asia. New Frontiers in Regional Science: Asian Perspectives, vol 17. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55630-5_1

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