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260 International Trade in Services Notes 1. A generic definition of IT services is provided in Gartner (2004), which states that IT services refer to the application of business and technical expertise to enable organizations in the creation, management, optimization of or access to information and business processes. The Services Sectoral Classification List of the General Agreement on Trade in Services (GATS) includes computer services as a subsector (designated 1B) of business and professional services (see WTO 1991). The subsector covers five subcategories: consultancy services related to the installation of computer hardware, software implementation services, data processing services, database services, and other. The subcategories, which are outlined in annex table 7A.1, are defined in greater detail in the corresponding items of the Provisional Central Product Classification (UN 1991). According to this classification, software implementation services include systems and software consulting services, systems analysis services, systems design services, programming services, and systems maintenance services. Most IT service exports from developing countries fall under the software implementation services item. 2. The reader should thus interpret the trade data presented here with caution and as rough estimates, given the differences in definitions and in coverage across the available data sources. The information is often collected from industry associations or through targeted surveys. For the balance of payments statistics of the International Monetary Fund, see http://www.imf.org/external/np/sta/ bop/bop.htm. 3. The GATS recognizes four modes of service delivery. Mode 1 refers to crossborder supply, Mode 2 to consumption abroad, Mode 3 to commercial presence, and Mode 4 to the temporary movement of natural persons. 4. See also McKinsey’s locational readiness index, Hewitt’s international benchmarking model, and Gartner’s 10 criteria. The common approach is to rank countries based on a number of variables, including the price, quality, and accessibility of necessary inputs such as labor and capital. International benchmarking exercises are subject to criticism, and this may be their main strength: many industry representatives and policy makers care passionately about their relative ranking and strive to improve their results. In general, simplicity is inversely related to objectivity, and results should be interpreted with caution. For example, movements in foreign exchange rates can have a strong impact on measures of cost and therefore lead to significant shifts in relative rankings from year to year. 5. Satellite connections exist, but are not cost-effective options for IT service exporters. 6. The OECD average is highly inflated because of Luxembourg, while the South Asia average is highly inflated because of the Maldives. 7. See http://go.worldbank.org/GKHOFFDJB0. 8. See http://www.stpi.in/, http://www.peza.gov.ph/, and http://www.smart-villages.com/docs/front.aspx. 9. The plurilateral Information Technology Agreement of the WTO covers 97 percent of the trade in IT products and has reduced the attraction of duty-free imports of IT products in the 72 countries and customs territories in which duties on IT equipment have been reduced to zero. See http:// www.wto.org/english/tratop_E/inftec_e/inftec_e.htm. 10. IT-related fields include computer science, computer engineering, electrical engineering, electronics engineering, communications, and IT. 11. See http://sas.sei.cmu.edu/pars/pars.aspx for published appraisal results by company name. 12. OECD (2006) provides a more extensive overview of data security and privacy issues. References Aron, Ravi. 2005. “Move Over, India: The Shifting Geography of Offshore Outsourcing Creates New Challengers.” India Knowledge@Wharton, January 14, Wharton School, University of Pennsylvania, Philadelphia. http://knowledge.wharton.upenn.edu/india/article.cfmarticleid=4035. A. T. Kearney. 2007. “Offshoring for Long-Term Advantage: The 2007 A.T. Kearney Global Services Location Index.” A.T. Kearney, Inc., Chicago.
Exporting Information Technology Services: In the Footsteps of India 261 Booz Allen Hamilton. 2006. “Information Security Risk a Top Concern among Outsourcing Executives.” Report, March 23, Booz Allen Hamilton, McLean, VA. Chanda, Rupa. 2005. “Trade in Services and South Asia: An Aggressive Agenda.” In South Asian Yearbook of Trade and Development 2005: Mainstreaming Development in Trade Negotiations; Run Up to Hong Kong, ed. Centre for Trade and Development, 105–208. New Delhi: Centre for Trade and Development. Creskoff, Stephen, and Peter Walkenhorst. 2009. “Implications of WTO Disciplines for Special Economic Zones in Developing Countries.” Policy Research Working Paper 4892, World Bank, Washington, DC. CyberMedia, CBC (Commonwealth Business Council), and Global Services. 2009. “Outsourcing to Africa: A Relative Ranking of 15 Country Locations.” Report, CyberMedia, Gurgaon, India. Dongier, Philippe, and Randeep Sudan. 2009. “Realizing the Opportunities Presented by the Global Trade in IT-Based Services.” In Information and Communications for Development 2009: Extending Reach and Increasing Impact, ed. World Bank, 103–24. Washington, DC: World Bank. Dossani, Rafiq. 2010. “Software Production: Globalization and Its Implications for South Asia.” In The Service Revolution in South Asia, ed. Ejaz Ghani, chap. 4. New York: Oxford University Press. El Shenawi, Nagwa, and Bruno Lanvin. 2009. “How Outsourcing Can Help Mobilize Talents Globally: Egypt’s Success Story.” In The Global Information Technology Report 2008–2009: Mobility in a Networked World, ed. Soumitra Dutta and Irene Mia, 113–22. Geneva: World Economic Forum. Engman, Michael. 2007. “Expanding International Supply Chains: The Role of Emerging Economies in Providing IT and Business Process Services.” OECD Trade Policy Working Paper 52, Organisation for Economic Co-operation and Development, Paris. ———. 2009. “Circular Labour Migration and Offshoring of IT Services: The Case of India.” Working Paper (September), Groupe d’Economie Mondial, Sciences Po, Paris. Feenstra, R. C., and G. H. Hanson. 1996. “Globalization, Outsourcing, and Wage Inequality.” American Economic Review Papers and Proceedings 86 (2): 240–45. Fink, Carsten, Aaditya Mattoo, and Randeep Rathindran. 2003. “An Assessment of Telecommunications Reform in Developing Countries.” Information Economics and Policy 15 (4): 443–66. Ganguly, Debjani. 2005. “Barriers to Movement of Natural Persons: A Study of Federal, State and Sector-Specific Restrictions to Mode 4 in the United States of America.” ICRIER Working Paper 169 (September), Indian Council for Research on International Economic Relations, New Delhi. Gartner. 2004. “Worldwide IT Services Market Definitions Guide, 3Q03.” Gartner Dataquest Guide 13 (January), Gartner, Inc., Stamford, CT. Gott, Johan. 2008. “The Advantage of Egypt as a Location for Offshore Services.” Presentation, Information Technology Industry Development Agency, Giza, Egypt. ITU (International Telecommunication Union). 2007. “Telecommunication/ICT Markets and Trends in Africa.” Report, ITU, Geneva. ———. 2009. Measuring the Information Society: The ICT Development Index 2009. Geneva: ITU. Kirkegaard, Jacob Funk. 2008. “Distance Isn’t Quite Dead: Recent Trade Patterns and Modes of Supply in Computer and Information Services in the United States and NAFTA Partners.” Working Paper 08–10, Peterson Institute for International Economics, Washington, DC. Marson, Tony, and Mindy Blodgett. 2007. “Is the Future Bright for Outsourcing IT Services to Egypt” Yankee Group Report, May, Yankee Group, Boston. Meyer, Thomas. 2009. “Offshoring to China: From Workbench to Back Office” Economics 68 (January 13), Deutsche Bank Research, Frankfurt. MGI (McKinsey Global Institute). 2005. The Supply of Offshore Talent in Services. Part II of The Emerging Global Labor Market. San Francisco: McKinsey & Company. MIGA (Multilateral Investment Guarantee Agency). 2006. “The Impact of Intel in Costa Rica: Nine Years after the Decision to Invest.” Investing in Development Series, MIGA, World Bank, Washington, DC. Nasscom (National Association of Software and Services Companies). 2009. “Indian IT-BPO Industry 2009: NASSCOM Analysis.” Indian IT-BPO Industry Factsheet, February, Nasscom, New Delhi. http://nasscom.in/upload/5216/IT_Industry_Factsheet-Mar_2009.pdf.
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Public Disclosure Authorized Public
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International Trade in Services New
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CONTENTS About the Editors and Cont
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Contents vii Boxes 2.1 Extent of Te
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Contents ix 1.4 Worker Remittances
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Contents xi 6.6 A Checklist of Ques
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xiv About the Editors and Contribut
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xvi Foreword Beyond describing the
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xviii Acknowledgments Finally, this
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1 Assessing the Potential of Servic
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Assessing the Potential of Services
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2 Increasing Labor Mobility: Option
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Increasing Labor Mobility 31 unders
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Table 2.2. Quantitative Estimates o
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Borjas, George “Heaven’s Doors:
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Increasing Labor Mobility 37 contri
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Increasing Labor Mobility 39 must h
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Worker categories covered Specifica
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Provisions on professionals Annex o
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Increasing Labor Mobility 45 The EU
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Table 2.7. Agreements between Austr
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Increasing Labor Mobility 55 Figure
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Increasing Labor Mobility 57 Bilate
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Increasing Labor Mobility 59 Jamaic
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Increasing Labor Mobility 61 factor
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Increasing Labor Mobility 63 indivi
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Increasing Labor Mobility 65 that a
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3 Legal Services: Does More Trade R
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Legal Services: Does More Trade Rhy
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Table 3.3. Trade in Legal Services:
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Table 3.8. Uruguay Round Commitment
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Page 241 and 242: 7 Exporting Information Technology
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Page 275 and 276: Brunei Darussalam 48.2 2.9 2,954 66
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Page 279 and 280: Norway 85.0 30.6 31,726 82.0 78.0 5
Page 281: Uganda 3.6 — 306 5.1 — 170.0 41
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Page 289 and 290: Accounting Services 267 Links to la
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Page 303 and 304: Accounting Services 281 Table 8.6.
Page 305 and 306: Accounting Services 283 Restriction
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Page 309 and 310: Accounting Services 287 Colleges of
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350 Index Association of Certified
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352 Index Convention on Combating B
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354 Index Former Yugoslav Republic
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356 Index International Public Sect
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358 Index migrants. See labor mobil
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360 Index public-private partnershi
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362 Index Thailand construction ser
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ECO-AUDIT Environmental Benefits St
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