Outsourcing Models: India in Competition
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The paper discusses India's current status as the outsourcing/offshoring capital of the global economy and examines the qualities that have allowed India to achieve this status. The paper then discusses how other emerging markets have begun to model India's success, with China being the most notable. The paper explains that while China cannot compete with India's English speaking population, it can compete in terms of infrastructure, educated workforce and cost-benefits. The paper includes an annotated bibliography.
From the Paper:"U.S. firms have increasingly employed Outsourcing and offshoring for several decades as the world has adopted the global economic model. While in the past these outsourcing and offshoring activities were largely limited to the manufacturing and production sectors, service and related industries have, for the past decade, found that some markets are able to perform back office and administrative functions as well as direct customer interaction. The fact that India has become the outsourcing/offshoring capital of the global economy is evidenced by its 8% annual growth rate, a 40% outsourcing growth rate for 2005 alone and estimated outsourcing industry valuations of $64b by 2012 with more than 3m employees (Krebsbach, 2006). With these kind of figures it is clear that India's outsourcing model is not a success but one which other markets could use as an economic paradigm in order to spur their own economic growth. "
Sample of Sources Used:
- Karoly L. & Panis K. (2004). The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States. Rand, Santa Monica. The authors of this book are researchers for the Rand Corporation which is a research intelligence company in California. The book and its corresponding research were partially funded by the U.S. Department of Labor. This text is specifically relevant to the topic of this paper because it addresses the impact on the labor market and human capital resources of the United States relative to globalization as part of its research purview. The authors observe that while the U.S. workforce will continue to expand, the character of the workforce has clearly shifted from manufacturing to service based industries. The authors also state that economic globalization will continue to drive change in industries and organization that previously were unaffected by globalization trends due to trade and commerce. The implication is that the foreign markets such as India and its emerging competitors for outsourcing contracts from the U.S. will continue to remove jobs from the U.S. making these emerging markets sources of human capital for U.S. based competitors.
- Krebsbach K. (2006). Inside the Outsourcing World of India. U.S. Banker, 116/12, pp.30-38.
- Outsourcing Boomerang. (2007). Communications of the ACM, 50/1, p.10.
- Papini J. (2007). Offshoring Part II: Maximizing Operations. Money Management Executive, 15/26, p.8. The author discusses how financial firms in the United States turn to offshore markets as a method of maximizing the cost-benefit of their operations. One key observation is that only a few short years ago in 2001 a mere 10% of financial firms maintained offshore operations but that by 2006 more than 75% maintained offshore operations. While India is by far the largest offshoring target market, China has made gains in the outsourcing/offshoring of back office functions for U.S. companies.
- RMRB: China Should Strive to be 'Global Office' of Service Outsourcing. (2007). World News Connection, 01/29. This article produced for general distribution by the Chinese government discusses some of China's mid and long-term goals relative to outsourcing and offshoring contracts from overseas markets. Specifically, China is determined to implement the service outsourcing model employed by India that has made that market such a success for outsourcing of service industries and back office functions. While this article is not objective it does clearly outline, and makes no effort to claim otherwise, the government's intent to mimic India's success.
Cite this Term Paper:
Outsourcing Models: India in Competition (2008, June 26) Retrieved August 04, 2020, from https://www.academon.com/term-paper/outsourcing-models-india-in-competition-104968/
"Outsourcing Models: India in Competition" 26 June 2008. Web. 04 August. 2020. <https://www.academon.com/term-paper/outsourcing-models-india-in-competition-104968/>