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Globalization of services with the aid of electronic technologies - popularly called outsourcing or offshoring - has been accelerating. In this paper, the factors that drive electronic globalization - as distinct from factors that drive the general process of globalization - are discussed briefly. A simple model of a 2-firm USA-India dyad engaged in outsourcing relationships is presented to outline the economic basis for electronic globalization. By introducing wider political and cultural forces, progressively more complex views of the electronic globalization phenomenon are presented. Finally, the interplays of the economic, political, and cultural forces are explored to arrive at a deeper understanding of electronic globalization, and broader consequences and longer-term impacts are explored.

Publisher Statement

This is the author's manuscript of an article published Decision (ISSN: 0304-0941), published by the Indian Institute of Management, Calcutta, India.