A critical legal and economic analysis of the potential threats and opportunities associated with the outsourcing of e-commerce services in developing countries with specific emphasis on India and selective SADC countries

Abstract

As the cross-border trade in services increases it is to be anticipated that it could become an important source of economic growth and employment to many countries in the developing world. l) Within context of the international trade in services, it is particularly the outsourcing of e-commerce services that could present attractive developmental advantages to developing countries. In addition to the obvious advantage of creating employment opportunities the educational, social and associated benefits cannot be disputed.2) A useful illustration in this regard is the significant effect that outsourcing in e-commerce has had on the economy of India. India has managed to leverage its comparative advantage in the supply of low-cost and high-skilled labour in the IC'T sector to provide cost-effective outsourcing opportunities to companies in the developed world, especially to the USA.