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Gurgaon Grief; Exporting Jobs
Article from Bulletin/Magazine
The Economist (http://search.proquest.com/) vol. 400 no. 8752 (Sep. 2011)
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Twenty years ago Gurgaon was farmland. Now it is a sea of villas, shopping malls, office blocks and apartment buildings with names like Beverly Park and Oakwood Estate. Gurgaon is a global centre for outsourcing back-office services. Here and in other such hubs around India, routine office work and data analysis are carried out for a variety of corporate customers, many from rich countries (so their tasks have been offshored as well as outsourced). Wages in Gurgaon are a small fraction of those of a back-office clerk in Newcastle or New York. That lowers costs for consumers. But it also raises anxiety among workers about low pay and a drain of jobs to cheaper locations. The world's leading economies have been ceding jobs to low-income rivals since the industrial revolution. As the division of global labour becomes ever more fine-grained, small tasks rather than whole industries move abroad. Any service job that can be delivered down a wire without any diminution in quality is offshorable, reasons Alan Blinder, a professor at Princeton University. Yet not all the jobs that can be offshored will be. A lot also depends on what happens in emerging markets.
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