ABSTRACT
Structural change in the composition of the world's foreign trade has been taking place in the recent past. Services have been contributing to a larger part of the world GDP for a while now, still, the contribution of services to world trade has been very less due to the non-tradability of services. However, developments in information and communication technology (ICT) have made it possible to ‘splinter off’ services embodied in the provider and made it possible to deliver it through telecommunication networks at distant locations. These developments have given rise to the phenomenon called outsourcing of services.
