Building business on India’s strict labour laws

India is known the world over as a prime innovator of outsourcing for foreign companies, which take advantage of its cheap, English-speaking labour force. Less well known is the extent to which Indian companies outsource their own jobs within their own country. The practice highlights a fundamental tension between India’s socialist past and a new, freewheeling private sector that is increasingly powering the economy while chafing at what many companies say are laws so protective of workers that they blunt hiring and stifle growth.

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