NEW DELHI: Developing countries such as India export a bewildering array of services but a considerable part of the gains from such outsourcing is reaped by developed nations, the United Nations Conference on Trade and Development (Unctad) said on Sept. 22. It said for every $1 spent on outsourcing, America benefits by $1.2-$1.4. “Benefits include lower prices to consumers, expanding markets for exports and higher corporate profits,” the UN agency said in its World Investment Report.

The report said during the past decade, India’s export of software and other services jumped from less than $500 million to $12 billion in 2003-04 and the export intensity of its software sector rose from 58 percent to 78 percent. The share of these services in the country’s total exports also rose from a mere three percent to 21 percent between 1996 and 2004.

It said the United States and Britain accounted for 82 percent of India’s exports of software and IT-enabled services, but added that the country may be in the process of harnessing its trade with other economies in the region.