Most countries in the world have embraced globalization and information and communication technology (ICT) as tools for economic development. However, there are many factors that need to be considered when evaluating the impact of ICT and globalization on local economic development. In this paper, we develop an integrated framework that provides an explanation for the new relationships between ICT use for global needs (such as outsourcing), local ICT use, economic development and disparities, and we illustrate these developments using a case study of Bangalore, India. JEL Classification: R11, O14, O18