Indi An Emerging Power

Supporters argue that outsourcing has a minimal effect on job losses, and has increased economic growth in some cases. In actuality, outsourcing has decreased the domestic economy by decimating job opportunities and lowering wages. Steven Pearlstein, economics columnist for the Washington post reaffirmed arguments that outsourcing has decreased employment availability and stability of the economy by saying “There are growing numbers of people who think that what started as a sensible, globalized extension of sending some work outside a firm to specialized companies may in fact be creating long-term structural unemployment in the United States, hollowing out entire industries”. (Pearlstein 3) The IT industry has been especially affected by outsourcing, with many jobs moving overseas to India and Bangladesh, leaving employees in the United States without a job, unable to compete with lower wage offerings. Supporters of outsourcing argue that this business strategy increases everyone’s productivity, raising everyone’s income, and boosting economic growth. Many such studies tend to focus on large multinational corporations, for which the data and anecdotes are more readily available. And indeed, during the 1990s, the data seemed to show that for every one job added abroad, companies added almost two new

India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.

At the time of development of globalization there were many concerns about its benefits. However, it has brought significant changes in all segments of human life and International business is one area in which it contributed heavily (Reich, 1998). Companies all over the world are currently formulating their business strategies mainly after considering the trends in global market instead of domestic market. Outsourcing and offshoring are some of the new business principles emerged in this world after the implementation of globalization (Samimi and Jentabad, 2014). The core of these new business concepts is to exploit the business opportunities in overseas countries as much as possible (Samimi and Jentabad, 2014).

Davies P. (2004). What's This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. London: Nicholas Brealey International.

Outsourcing, or the practice of Corporations expanding their influence, and labor force to foreign countries needs to stop. As it causes the decline of developed nations labor forces, does nothing to fix inequality in underdeveloped nations, has adverse affects on the economies of developed nations, and outsourcing allows corporations to cause extensive harm the the world, and it’s enviornment. If the practice of globalization were ended, it would improve the lives of many people in developed nations, the policies that affect them, and ultimately the world.

Many argue outsourcing takes jobs away from the American people, which would be true in high skill situations, but if they are low skill jobs that Americans do not want to work regardless, then that argument is rendered invalid. If America were to outsource their low skilled jobs, the jobs would get done, likely at lower costs to the developed country, and at higher benefit to the developing country being outsourced to. Authors of “Immigration Versus Outsourcing; A Developing Country’s View”, Simontini Das, Ajitava Raychaudhuri, and Saikat Sinha Roy, concur that for the developing country, outsourcing is in fact more beneficial. They claim that the establishing trade deals via outsourcing between countries will aid in the development of the country as a whole, while keeping workers at home. Das, Ajitava, and Saikat conclude that if the outsourcing market were to expand, the need for workers to migrate would be substantially lessened, all the while filling jobs and improving the

The film “Other Side of Outsourcing” directed by Kenneth Levis and reported by Thomas Friedman, an American columnist who works at the New York Times discusses globalization and outsourcing in India illustrating their benefits and harms to the community. Globalization is a world order based on the creativity of scientific, technical and cultural development and communications revolution which removes world barriers making the world more like a small global village. For example, the spread of the United States and the Western countries styles around the world is part of globalization. In India, according to the film, globalization has some advantages which benefited the Indian people; however, for some Indians globalization is not an advantage.

In addition outsourcing is also the result of globalization; Jagdish Bhagwati’s definition of globalization says, “Globalization is integration of national economies into the international economy through trade, foreign direct investment, capital flow, migration, and the spread of technology throughout the world” (Bhagwati 8). Finn implies that globalization is the major factor for the exploitation of cheap foreign labor in third world countries and the main cause

The only way to get new customers is to expand the business further out in the world. Outsourcing to India would allow a new group of customers and different kind of ethics. A positive to outsourcing to India would be that India has not yet seen this type of business before and could be in high demand (Rampton,

As a result of these reforms, the world has been opened up to India and globalization had begun. Globalization has given India new opportunities in economics, social, traditional and governmental methods. The economic sector has had the biggest changes in India. As a result of globalization, westernization has become very apparent in Indian society today and has changed the daily life of the Indian. For instance, English language, clothing, and behaviors, which are more western and taking the place of Indian traditions, are the new ways of the younger generation of India. Globalization offers the youth economic liberation With remarkable growth, India is considered one of the fastest growing countries in the world today (Komath, 2010). Outsourcing by IT and BPO (business process outsourcing) has had tremendous growth in India with a rise in trained professionals that are employed by local and foreign companies to service customers in the U.S. and Europe. Globalization has had a good influence overall on the economy (Somalkar, n.d.). Industry has brought many big manufacturing companies to India which has boosted the economy, by offering employment to the Indian people. But in the farming areas or rural areas of India, it is a much different feeling. It is said that the liberation that the youth enjoy has had a negative impact of the rural areas saying the it has lowered the

“Today, Indian outsourcing is one of the best ways for CIOs to cut application development and maintenance costs, and deal effectively with the peaks and valleys of software demands.” (Yeo). Outsourcing to India is still focused primarily on highly technological aspects, but is not limited there. They are known for creative development in the pharmaceutical field, and have recently developed an unsurpassed medication for adult ADHD. Their superior IT assistance is not limited to companies, they offer many websites for individuals seeking help with programming. In mid 2007, U.S. outsourcing to India reached $4.9 billion. Although technologically advanced, they still lag in economic prosperity and therefore still don’t expect the type of compensation that Americans do. “They

The impact of software development offshore outsourcing has many economic and social impacts. Economically, India is thriving with GDP growth accelerating exponentially including having the potential to achieve double-digit growth.1 Meanwhile, in the United States, the numbers relating to developer jobs are quite the opposite. Most figures suggest that by 2015, roughly 3.3 million business-processing jobs will have moved abroad. As of July 2003, around 400,000 jobs already had.2

Many business models rely on outsourcing. This occurs when companies contract out some of their business to a third party. In its most common form, outsourcing is a cost effecting business venture. Companies find it more advantageous to purchase a service from a third party rather than try to provide it internally. It can often save money, time, and result in a more efficient product. The focus here is on information technology outsourcing. This is a bit more specific in that it focuses on subcontracting part of an IT function for a specific corporation. Most companies are using IT outsourcing as a means to save money and benefit from the education of third world countries. By outsourcing to places such as India, China, and the Philippines, companies can save big bucks on labor costs. However, this is a “top-down” way of benefitting from outsourcing. But, what if, instead of focusing on how the big corporations could save money on labor and utilizing third world nations, we focused on how third world nations could benefit from helping the corporations. This would switch the focus, but would still provide a symbiotic relationship for the impoverished and the big city corporations.

India is one of the fastest economic growth countries in the world; it is also one of the world’s top ten economics. According to the global purchasing power parity data from the IMF, India is the third largest economy country of the world. As the US dollar to be the monetary unit, India is the seventh largest economy with high speed increase rate. Therefore, many economists forecasting that until 2050, India will become the No.3 largest economy country which just behind US and China. As the growth speed side, the GDP increase rate of India was 7.3% in 2014-2015 fiscal year, It is exceed China to become the fastest economic growth

Digital India is an initiative of Government of India to integrate the government departments and the people of India. Digital India mission is expected to create over five crore jobs in various sectors. The project will also facilitate Training to around 1 crore students for IT sector by 2020 - opening new windows of opportunities for professionals with a host of careers and jobs. The new FDI norms will drive jobs in the country, especially in the IT sector. India has already seen an increased FDI inflows at USD 55.46 billion in financial year 2015-16, as against USD 36.04 billion in 2013-14. This is the highest ever FDI inflow for a particular financial year, and according to the report. The objective of the study is to explore the “Digital India” initiative to drive technology sector in India, identify the evidences of FDI in Digital India, trace the digital demographics and the impact of Digital India by 2019 and suggest priority measures for improving India’s investment climate. India is set to become a nation of job creators rather than job seekers. International corporations with a presence in India are far more optimistic about