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 Symbiosis Institute of Media and Communication, Pune Module Name- Economics -Pro f. 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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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.