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8/6/2019 120reco
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Symbiosis Institute of Media and Communication, Pune
Module Name- Economics
-Prof. Ashish Kulkarni
Assignment Name- Outsourcing industry Submitted By: Rohit Koul
Student Name: Rohit Koul
Roll no: 120
Specialization and Section: MBA-B
Batch: 2011-13
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B on the outsourcing industry answer the
following:-
1. Is outsourcing good for India or not and on what ground?
Outsourcing Industry was and is still a booming industry in India. The
Business process outsourcing industry in its early stages in later half of
1990s brought a revolution of different kind in the Indian subcontinent.
Cost efficiency and quality of people both made this Industry a success in
India.
This Industry slowly and slowly got its place in the Indian culture and
made its place as an important part of Indian system.
This industry started with providing jobs to a few people but grew at a
faster pace and is now one of the biggest industrial sectors which absorb
a huge mass of India, thus reducing the job hues for Indian state to a
large extent.
Keeping this fact and other facts given below in mind I believe that
outsourcing is completely beneficial and fruitful for Indian subcontinent.
Other than reducing the unemployment figures the outsourcing industry
has wheeled the Indian economic growth. The noticeable change in the
economic structure of India after the growth of the outsourcing industry
itself speaks of the good which the so called BPO industry has done.
Also the contributions made by the BPO industry towards thedevelopment and changing life style cannot be neglected.
2. Debunk the argument of Americans, that outsourcing is bad for
America and prove them wrong.
Americans feel that it is the outsourcing that has resulted in to the loss
of a number of jobs in their country and also has resulted in slow
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economic growth. That is the reason why even Obama, president of US,
is opposed to the process of outsourcing jobs to India. The politicians
have hyped this issue so much that this really seems an issue now to the
masses.
Not only this, the US government has put some sanctions on suchorganisations which opt for outsourcing.
These sanctions are completely baseless and for getting the political
benefits.
The Facts are that the corporate in US are getting tremendous benefits
because of outsourcing which in turn is helping in the growth of the US
economy. Also by this there is a positive contribution towards the health
of the US citizens.
Not only this, the citizens of US would prefer to save on a burger than to
work in low paying jobs.
Also Outsourcing helps small and new start up companies to survive in
tough economic conditions also. A number of US organisations have
actually developed by outsourcing the jobs which can be done with
fewer expenses. Organisations have really made lots of profits and
contributed to the US economy.
They are also forgetting the CSR where they are contributing towards
the developing countries without making much effect to their economy.
3. India is outsourcing to China, explain why it happening?
There was a time when US started outsourcing some of its jobs to India.
This outsourcing grew slowly and slowly. This industry did very well and
grew tremendously. It was that US companies had reached a level where
they found it cheap and profitable to outsource their business. Now
after a long time India has slowly progressed and is reaching a level
where the organizations are looking forward to do same as US i.e. tooutsource a part of its business to countries where they can save some
part of their revenue. These countries are like China, Philippines and
Indonesia.
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Also now that these countries are opening for trade and have a lot of
potential for outsourcing. Indian players are finding it profitable to use
these regions to outsource.