HT Image
HT Image

US gains more than India from service outsourcing

A new study says that exports from the US contain services whose gains for the US outweigh services sent to India and China.
By HT Correspondent | Hindustan Times, New Delhi
UPDATED ON JUN 16, 2008 09:11 PM IST

Guess who is gaining from outsourcing of services? Er, the US itself — not just as a spender but also an earner, because a lot of exports made from the United States and consumed elsewhere contain services whose gains for the US outweigh services sent to India and China, says a new study.

The tellingly titled research paper, “Much Ado About Nothing: American jobs and the rise of service outsourcing to China and India,” was published this month by Massachusetts-based National Bureau of Economic Research.

The chairman of the National Association of Software and Service Companies (Nasscom), Ganesh Natarajan, said it was a vindication of globalisation and went against some outcry in Western markets against service jobs to India, adding US also gained in competitiveness and technology sales.

Examining "offshore outsourcing" Runjuan Liu and Daniel Trefler, substantiate their arguments with a complex set of variables that takes into account flow of services both to and from the US.

A key aspect is that they also consider "inshoring" – a reference to the sale of services produced in the United States to unaffiliated buyers in China and India. The authors call this "the flip side of offshore outsourcing, namely, the sale of services produced in the US to unaffiliated parties in low-wage countries."

“The net impact of globalisation in terms of actual job losses (in the West) in the technology sector has not been significant and the benefits accruing to the economy in the form of sale of high technology products and the overall competitiveness of firms in the outsourcing country have always compensated for any adverse economic impact of offshore outsourcing,” said Nasscom chairman Ganesh Natarajan. “This study…makes the case for the process of globalisation to continue."

The authors refer to services like legal work, research and development, advertising, management consulting and engineering which are consumed by customers in India and China — though not necessarily in a directly paid-for way.

"We precisely estimate small positive effects of inshoring and smaller negative effects of offshore outsourcing. The net effect is positive," say the researchers, who used mathematical modeling and data from 1996 to 2006 to arrive at their conclusions.

The researchers took into account factors like earnings, unemployed hours and switching between various industries to get the total picture.

The study says that the losers in the US in the outsourcing-affected industries are "less educated."

SHARE THIS ARTICLE ON
app
Close
Nomura said that in sync with the ongoing growth upcycle, the economy will enter a Goldilocks period in the coming months as inflation continues to moderate.(AP)
Nomura said that in sync with the ongoing growth upcycle, the economy will enter a Goldilocks period in the coming months as inflation continues to moderate.(AP)

Virus fears return to haunt markets

By Nasrin Sultana, Mumbai
PUBLISHED ON JAN 16, 2021 08:56 AM IST
The BSE Sensex fell 549.49 points, or 1.11%, to 49,034.67, while the Nifty shed 161.90 points to 14,433.70. Shares in other Asia-Pacific regions were mostly lower. South Korea’s Kospi fell the most at 2.03%, while Japan’s Nikkei shed 0.62% and the Topix index 0.89%.
Close
India’s third-largest software services company by revenue posted a profit of Rs.3,982 crore in the three months ended December 31, a 26.7% increase from the previous quarter,(Pradeep Gaur/Mint File Photo)
India’s third-largest software services company by revenue posted a profit of Rs.3,982 crore in the three months ended December 31, a 26.7% increase from the previous quarter,(Pradeep Gaur/Mint File Photo)

HCL Tech Dec qtr profit jumps 27% to Rs.3,982 crore

By Nandita Mathur, New Delhi
PUBLISHED ON JAN 16, 2021 08:55 AM IST
The strong performance prompted HCL Tech to lift its revenue forecast for the March quarter. It expects revenue during the quarter to grow 2-3% in constant currency terms, up from its previous estimate of 1.5-2.5%.
Close
Imports expanded 7.56% last month, the first time in 10 months, while exports grew 0.14%—leaving a trade deficit of $15.44 billion, according to data released by the commerce ministry on Friday.(Bloomberg)
Imports expanded 7.56% last month, the first time in 10 months, while exports grew 0.14%—leaving a trade deficit of $15.44 billion, according to data released by the commerce ministry on Friday.(Bloomberg)

India’s trade deficit at 25-month high in Dec

By HT Correspondent | Livemint, New Delhi
UPDATED ON JAN 16, 2021 04:33 AM IST
India’s merchandise trade had been weakening even before the pandemic hit the economy and external demand. Since March 2020, both exports and imports started declining in high double digits, even temporarily leading to a trade surplus in June for the first time in 18 years.
Close
Refunds issued are received within 20-45 days from the date of completion of processing of ITR by the Centralized Processing Centre (CPC).(HT FILE PHOTO )
Refunds issued are received within 20-45 days from the date of completion of processing of ITR by the Centralized Processing Centre (CPC).(HT FILE PHOTO )

How to check income tax refund status online. Read here

By hindustantimes.com | Edited by Shankhyaneel Sarkar, Hindustan Times, New Delhi
PUBLISHED ON JAN 15, 2021 11:37 PM IST
  • Income tax refund (ITR) status can be checked on the National Securities Depository Limited (NSDL) website as well as on the income tax department’s e-filing site.
Close
U.S. industry operated at 74.5per cent of capacity in December, still below the pre-pandemic rate of 76.9per cent in February.(Representative image)
U.S. industry operated at 74.5per cent of capacity in December, still below the pre-pandemic rate of 76.9per cent in February.(Representative image)

US industrial production jumps 1.6 per cent in December

AP
UPDATED ON JAN 15, 2021 11:19 PM IST
The December gain in industrial output followed a 0.5per cent increase in November and a 1 per cent increase in October, the Federal Reserve reported Friday.
Close
The Signal messaging app logo is seen on a smartphone, in front of the same displayed same logo, in this illustration. (REUTERS)
The Signal messaging app logo is seen on a smartphone, in front of the same displayed same logo, in this illustration. (REUTERS)

Signal sees global outage, company says 'working hard to restore service'

Written by Meenakshi Ray
UPDATED ON JAN 15, 2021 11:18 PM IST
Site status tracker DownDetector showed there were 2,167 reports about the issue as users reported they could open the app and send messages but were being delivered later.
Close
The Signal messaging app logo is seen on a smartphone.(REUTERS)
The Signal messaging app logo is seen on a smartphone.(REUTERS)

Messaging app Signal experiencing technical difficulties

Reuters
UPDATED ON JAN 15, 2021 10:48 PM IST
Signal has seen a rise in downloads following a controversial change in rival messaging app WhatsApp's privacy terms, which required WhatsApp users to share their data with both Facebook Inc and Instagram
Close
Bengaluru is also ranked sixth for the world’s tech venture capitalist (VC) investments, on a global list topped by Beijing and San Francisco, New York, Shanghai and London making up the top five.(PTI File)
Bengaluru is also ranked sixth for the world’s tech venture capitalist (VC) investments, on a global list topped by Beijing and San Francisco, New York, Shanghai and London making up the top five.(PTI File)

Bengaluru emerges as world’s fastest growing tech hub, London second: Report

PTI, London
PUBLISHED ON JAN 15, 2021 10:37 PM IST
The UK capital of London registered an impressive three times growth between 2016 and 2020, rising from USD 3.5 billion to USD 10.5 billion.
Close
The PIL said the ministries of commerce and finance control and regulate the export policies and decide as to under which Harmonized System (HS) Codes each good will be exported.(MINT ARCHIVE)
The PIL said the ministries of commerce and finance control and regulate the export policies and decide as to under which Harmonized System (HS) Codes each good will be exported.(MINT ARCHIVE)

SC asks Govt's, 61 firms' reply on PIL alleging duty evasion in iron ore exports

PTI, New Delhi
PUBLISHED ON JAN 15, 2021 09:39 PM IST
A bench headed by Chief Justice S A Bobde took note of submissions of lawyer and PIL petitioner ML Sharma that companies be prosecuted for alleged evasion of export duty by declaring wrong tariff code to export iron ore.
Close
PVR said even post reopening, the combination of staggered state wide reopening, capacity restrictions and limited movie releases impacted the admit levels while costs continue to be incurred.( Harsimar Pal Singh/Hindustan Times)
PVR said even post reopening, the combination of staggered state wide reopening, capacity restrictions and limited movie releases impacted the admit levels while costs continue to be incurred.( Harsimar Pal Singh/Hindustan Times)

PVR reports net loss of 49 crore in Q3

PTI, New Delhi
PUBLISHED ON JAN 15, 2021 09:03 PM IST
Revenue from operations during the period under review stood at 45.10 crore, down 95.04 per cent from 915.74 crore in the corresponding quarter a year ago.
Close
The regulator made it clear that carrying passengers as well as cargo in the passenger compartment at the same time is not allowed.(Representative image)
The regulator made it clear that carrying passengers as well as cargo in the passenger compartment at the same time is not allowed.(Representative image)

DGCA issues guidelines on carrying cargo in passenger compartment of aircraft

PTI, New Delhi
UPDATED ON JAN 15, 2021 07:44 PM IST
"Operator intending to carry cargo in passenger compartment shall apply to DGCA at least 10 days prior to the proposed commencement of operations," the regulator said in its guidelines.
Close
With less than five weeks before the UK’s transition period ends, Brexit negotiations are in their final stages.(AP file photo)
With less than five weeks before the UK’s transition period ends, Brexit negotiations are in their final stages.(AP file photo)

Stuck in Kent: How Brexit red tape strangled cross-border trade

Bloomberg
UPDATED ON JAN 15, 2021 07:30 PM IST
Britain’s logistics industry had warned that businesses would need to hire an additional 50,000 workers to process the 200 million extra customs forms that will be required annually after Brexit.
Close
A coronavirus information sign is displayed by a bus stop in London. (AP Photo)
A coronavirus information sign is displayed by a bus stop in London. (AP Photo)

UK prepares for another recessions as lockdowns cripple economy

AP, London
PUBLISHED ON JAN 15, 2021 07:09 PM IST
  • Because of the November fall, the economy is set to contract again in the fourth quarter.
Close
The headquarters of European Central Bank (ECB) is photographed as the spread of the coronavirus disease (COVID-19) continues during an extended lockdown in Frankfurt, Germany, January 14, 2021. REUTERS/Kai Pfaffenbach(REUTERS)
The headquarters of European Central Bank (ECB) is photographed as the spread of the coronavirus disease (COVID-19) continues during an extended lockdown in Frankfurt, Germany, January 14, 2021. REUTERS/Kai Pfaffenbach(REUTERS)

Banks in Europe yet to fully feel pandemic’s impact, warns ECB

Bloomberg
PUBLISHED ON JAN 15, 2021 04:19 PM IST
A key challenge is that companies propped up by government support measures in 2020 could find themselves in vulnerable financial positions as those programs are withdrawn.
Close
The committee members comprise four RBI officials and two external experts.(Photo: Mint)
The committee members comprise four RBI officials and two external experts.(Photo: Mint)

RBI drains 2 trillion in a bid to nudge shorter rates higher

Bloomberg
PUBLISHED ON JAN 15, 2021 04:08 PM IST
The RBI is draining excess cash after money-market rates crashed way below its 3.35%-4.00% interest-rate corridor late last year, spurring calls from investors for it to remedy a situation that could distort banks’ asset pricing.
Close
SHARE
Story Saved
OPEN APP