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India EuropeHow to create a Win-Win game in IT
?IIT Delhi - 24 November 2008 Dr. Jean-Joseph
BOILLOTEconomist India-ChinaCofounder
Euro-India Economic Business GroupEIEBGgroup_at_gm
ail.com
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Challenges ahead
Economic catch up magnitude and lag
Population challenge the Window of
Opportunity Global challenges see climate
change The Services Revolution Challenges for
Europe Challenges for India
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India and Europe 2025 still distant
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even more per capita
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How long the Demographic Window of opportunity?
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The World Population 1950-2050 (billion)
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Same in percentage, Different picture!
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Even more with the 15-24 years old group
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The Earthquake on the global labor Market 5
years incremental variation of the age group
15-59 total world
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CO2 a good exemple of the sustainable challenge
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II-The Services Revolution and the standart
Economic Theory
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The Services Revolution and the standart Economic
Theory
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The Services Revolution and the New Economic
Theory of imperfect competition and localisation
1/ The ITC revolution allows an increasing
number of services to be produced at TIME and
PLACE different from the place of consumption.
2/ The production any services can be henceforth
distributed internationally according to the
comparative advantages of territories and of the
competitive strategies of firms. 3/ The
economics of services gets more and more closer
to the standart  industrialisation model  and
 imperfect competition  high specialisation,
return to scale, cluster and size benefits etc
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Outsourcing just a begining!
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Global Gains, yes, but what distribution?
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And Europe swandich between the USA and India
End of cycle
Growing
Embryonic
Mature
High (Low)
IT Offshoring
Call centers
Banking BPO
Accounting HR
Maturity (Value Add)
Contract manufacturing
RD/Innovation
Knowledge Processes
Low (High)
Timing
How to reopen the pathway to India with a mixed
strategy
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III- Dual challenge Europe and Indiaa/ for
Europe
The Brain Drain between Knowledge Based
Economies the EU Human Capital Outflows to the
US (Ahmed Tritah survey, CEPII 2008)   1/ EU
brain drain to US is about a small number of
individuals, but the share of Europeans who are
leaving is increasing as one moves along the
educational distribution and ladder of
occupations that matter the most in the
knowledge economy. 2/ Using productivity based
brain drain indices it is found that aggregate
human capital conveyed by emigrants has increased
since the 1990s. 3/ Finally, as a proxy for
the of human capital embodied in EU emigrants,
Europeans earn a positive wage premium relative
to the US natives and even higher for the most
recent expatriates cohorts, providing further
evidence that the quality of European emigrants
has increased.

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a/ for Europe (2)

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b/ for INDIA

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Understanding better the EU New Economic
Geography in our Globalized World