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The Potential of Global Sourcing of Services for Achieving Sustainable and Inclusive Growth

A conference presented by the e-Development Thematic Group in conjuction with PREM Learning Week 2008

Event detailsEvent resources
 Date:04-16-2008Event Video
 Time:11:45 a.m. - 1:15 p.m. ET Speaker Biographies
 Venue:I2-250 Agenda
  Presentations & Downloads
 Sponsored by: Photos



Philippe Dongier, Sector Manager, CITPO, World Bank


Kiran Karnik, the former President of India's NASSCOM
Noshir Kaka, Director and Head of McKinsey's global offshoring practice
Ray Anthony Roxas-Chua, Chairman, Commission on Information and Communications Technology (CICT), Philippines



Interview with Anthony Roxas-Chua III

Program Description

The increasing penetration of broadband, falling telecommunications costs and greater openness to FDI, has made it possible to "outsource" or "offshore" services to different locations around the globe. Services ranging from low-end data entry, medical transcription and call centers to high-end software development and R&D are now being provided electronically over large distances, both in-country and across national borders. The addressable market for global sourcing of services has been estimated to exceed $300 billion, with only a fourth of this opportunity being exploited so far. Hypothetically some 11% of the 1.46 billion service jobs in the world can be performed remotely. A few developing countries have begun experiencing the economic benefits of this phenomenon. India the biggest beneficiary, generated export revenues of $31.4 billion in 2006-07 and employed 1.6 million people in its IT and IT enabled services sector. The sector has been recording an impressive annual growth rate of 33% and contributes to nearly 5.5% of national GDP. While the economic impacts of the global sourcing of services may seem obvious, the phenomenon can also potentially have social impacts, particularly with regard to empowerment of women.

The session will debate the following questions:

  • What opportunities does the global sourcing of services offer to developing countries to increase incomes, expand employment and participate in the knowledge economy?
  • Whether the potential exists for all developing countries to benefit from this phenomenon, or whether benefits are likely to accrue to only some developing countries?
  • Whether global sourcing can bring sustained benefits to a country, or is it likely to be short-lived, given the footloose nature of the industry?
  • What should developing countries be doing to benefit from the opportunities in this sector to achieve sustainable and inclusive growth?
  • Is it prudent for developing countries to "pick winners" by promoting this sector?
  • What will be the consequences of global sourcing on the developed countries and to what extent is a backlash likely?
  • How should the World Bank help client countries to benefit from this opportunity?

Participants from outside the Bank will need a building pass for this seminar, please RSVP and feel free to invite others. To join our mailing list, please write to

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Speaker Biographies

Kiran Karnik was president of NASSCOM, the premier trade body and the “chamber of commerce” for the IT software and services industry in India till January 2008. Mr. Karnik has been recognized as the guiding force for the Indian IT industry, and has been instrumental in promoting India’s technology strength to the world. Prior to joining NASSCOM, he was the founder managing director at Discovery Networks in India. Before that, Mr. Karnik spearheaded the Government of India’s initiativse for Countrywide Classroom broadcasts and other ICT initiatives. Earlier, Mr. Karnik was founder-director of Indian Space Research Organization’s Development and Educational Communicational Unit. He has been a member of many key government committees, including the Scientific Advisory Council to Prime Minister.

Noshir Kaka is a director and the global practice leader of the Outsourcing and Offshoring Practice of McKinsey and Company. He is also the office manager of the Business Technology Office of McKinsey in India. Mr. Kaka’s recent experience includes leading both McKinsey’s global knowledge initiative on executing BPO and the 2nd and 3rd McKinsey-Nasscom reports on understanding current trends and outlining future initiatives for the IT and BPO sectors in India. He has built and jointly executed an offshore strategy for one of the top 5 U.S. banks including, scoping the opportunity, selecting the site, establishing the governance and project management teams, defining the offshore programme management methodology and supporting the rollout and execution. He also developed an overall vision and growth strategy for the BPO business of one of India’s largest software services firms. This included developing an overall strategy, organizational design, people process, and customer acquisition methodologies. Mr. Kaka developed an offshore partnership strategy for one of the largest global software product companies including balancing insourcing vs. outsourcing, vendor management principles and talent management in an offshore environment. Mr. Kaka was actively involved in the creation of the Indian School of Business, which is a joint initiative between McKinsey, Wharton, and Kellogg to build a world-class business school in India.

Ray Anthony Roxas-Chua III is the chairman of the Commission on Information and Communications Technology (CICT) of the Government of the Philippines. Prior to assuming this position, Mr. Roxas-Chua was vice president of the Technology Investment Banking unit of Citigroup Inc. in Palo Alto, California, where he focused on securities underwriting, M&A advisory, and loan syndication for technology companies.


Philipp Dongier is a sector manager in the Global ICT Department in the World Bank Group. He has played a rangee of leadership roles in the infrastructure and sustainable development sectors and worked on operations and analytical work in Asia, Africa and Latin America. Mr. Dongier managed the Bank's support to Afghanistan reconstruction and led a corporate initiative on strengthening the Bank's organizational effectiveness. He recently authored a World Bank report entitled ‘Infrastructure: Lessons from the Last Two Decades of World Bank Engagement’. Prior to joining the Bank, Mr. Dongier worked with McKinsey & Company, advising companies and governments on issues of strategy and organizational restructuring, including in the telecom and IT industries. He also worked in Nepal and Vietnam in decentralized and community-based infrastructure and finance, and enterprise development.

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Welcome & Introduction
11:45-11:50 am
Philippe Dongier (Chair), Sector Manager, Global ICT Dept., World Bank
11:50-11:55 am
Randeep Sudan (Session Organizer), Lead ICT Policy Specialist and Leader of IT/ITES Industry Practice, Global ICT Dept., World Bank
Opening Remarks
11:55 – 12:10 pm
Kiran Karnik, former CEO, NASSCOM
12:10 – 12:25 pm
Ray Anthony Roxas-Chua III, Chairman, Commission on Information and Communications Technology (CICT), Philippines
12:25 – 12:40 pm
Noshir Kaka, head of McKinsey's global BPO practice
12:40 – 1:10 pm
Questions and Answers
1:10 – 1:15 pm
Closing Remarks

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Presentations & Downloads

The Philippine Offshoring and Outsorcing Industry
Presented by: Ray Anthony Roxas-Chua III

 Achieving Sustainable and Inclusive Growth Through Global Sourcing of Services
Presented by: Noshir Kaka

About e-Development Thematic Group

e-Development Thematic Group is a global forum and community of professionals interested in the role of ICT in development,  open for participation by both World Bank staff and external clients and partners. The e-TG is hosted by Global ICT Dept in collaboration with ISG, WBI, PREM, and other partners. Visit us at download materials for this and all previous e-development seminars (over 120 since 2001). Watch some of the recent events sponsored by the e-Development Thematic Group if you missed them (with links to videos, slides, speaker profiles, background materials etc.)

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