C.E.-Outsourcing Works, So India Is Exporting Jobs

[Gregory Hewett]

September 25, 2007
Outsourcing Works, So India Is Exporting Jobs
By ANAND GIRIDHARADAS

MYSORE, India — Thousands of Indians report to Infosys Technologies’ campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too.
Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company’s American back offices.
India is outsourcing outsourcing.
One of the constants of the global economy has been companies moving their tasks — and jobs — to India. But rising wages and a stronger currency here, demands for workers who speak languages other than English, and competition from countries looking to emulate India’s success as a back office — including China, Morocco and Mexico — are challenging that model.
Many executives here acknowledge that outsourcing, having rained most heavily on India, will increasingly sprinkle tasks around the globe. Or, as Ashok Vemuri, an Infosys senior vice president, put it, the future of outsourcing is “to take the work from any part of the world and do it in any part of the world.”
To fight on the shifting terrain, and to beat back emerging rivals, Indian companies are hiring workers and opening offices in developing countries themselves, before their clients do.
In May, Tata Consultancy Service, Infosys’s Indian rival, announced a new back office in Guadalajara, Mexico; Tata already has 5,000 workers in Brazil, Chile and Uruguay. Cognizant Technology Solutions, with most of its operations in India, has now opened back offices in Phoenix and Shanghai.
Wipro, another Indian technology services company, has outsourcing offices in Canada, China, Portugal, Romania and Saudi Arabia, among other locations.
And last month, Wipro said it was opening a software development center in Atlanta that would hire 500 programmers in three years.
In a poetic reflection of outsourcing’s new face, Wipro’s chairman, Azim Premji, told Wall Street analysts this year that he was considering hubs in Idaho and Virginia, in addition to Georgia, to take advantage of American “states which are less developed.” (India’s per capita income is less than $1,000 a year.)
For its part, Infosys is building a whole archipelago of back offices — in Mexico, the Czech Republic, Thailand and China, as well as low-cost regions of the United States.
The company seeks to become a global matchmaker for outsourcing: any time a company wants work done somewhere else, even just down the street, Infosys wants to get the call.
It is a peculiar ambition for a company that symbolizes the flow of tasks from the West to India.
Most of Infosys’s 75,000 employees are Indians, in India. They account for most of the company’s $3.1 billion in sales in the year that ended March 31, from work for clients like Bank of America and Goldman Sachs.
“India continues to be the No. 1 location for outsourcing,” S. Gopalakrishnan, the company’s chief executive, said in a telephone interview.
And yet the company opened a Philippines office in August and, a month earlier, bought back offices in Thailand and Poland from Royal Philips Electronics, the Dutch company. In each outsourcing hub, local employees work with little help from Indian managers.
Infosys says its outsourcing experience in India has taught it to carve up a project, apportion each slice to suitable workers, double-check quality and then export a final, reassembled product to clients. The company argues it can clone its Indian back offices in other nations and groom Chinese, Mexican or Czech employees to be more productive than local outsourcing companies could make them.
“We have pioneered this movement of work,” Mr. Gopalakrishnan said. “These new countries don’t have experience and maturity in doing that, and that’s what we’re taking to these countries.”
Some analysts compare the strategy to Japanese penetration of auto manufacturing in the United States in the 1970s. Just as the Japanese learned to make cars in America without Japanese workers, Indian vendors are learning to outsource without Indians, said Dennis McGuire, chairman of TPI, a Texas-based outsourcing consultancy.
Though work that bypasses India remains a small part of the Infosys business, it is growing. The company can be highly secretive, but executives agreed to describe some of the new projects on the condition that clients not be identified.
In one project, an American bank wanted a computer system to handle a loan program for Hispanic customers. The system had to work in Spanish. It also had to take into account variables particular to Hispanic clients: many, for instance, remit money to families abroad, which can affect their bank balances. The bank thought a Mexican team would have the right language skills and grasp of cultural nuances.
But instead of going to a Mexican vendor, or to an American vendor with Mexican operations, the bank retained three dozen engineers at Infosys, which had recently opened shop in Monterrey, Mexico.
Such is the new outsourcing: A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border.
In Europe, too, companies now hire Infosys to manage back offices in their own backyards. When an American manufacturer, for instance, needed a system to handle bills from multiple vendors supplying its factories in different European countries, it turned to the Indian company. The manufacturer’s different locations scan the invoices and send them to an office of Infosys, where each bill is passed to the right language team. The teams verify the orders and send the payment to the suppliers while logged in to the client’s computer system.
More than a dozen languages are spoken at the Infosys office, which is in Brno, Czech Republic.
The American program here in Mysore is meant to keep open that pipeline of diversity.
Most trainees here have no software knowledge. By teaching novices, Infosys saves money and hopes to attract workers who will turn down better-known companies for the chance to learn a new skill.
“It’s the equivalent of a bachelor’s in computer science in six months,” said Melissa Adams, a 22-year-old trainee. Ms. Adams graduated last spring from the University of Washington with a business degree, and rejected Google for Infosys.
And yet, even as outsourcing takes on new directions, old perceptions linger.
For instance, when Jeff Rand, a 23-year-old American trainee, told his grandmother he was moving to India to work as a software engineer for six months, “she said, ‘Maybe I’ll get to talk to you when I have a problem with my credit card.’ ”
Said Mr. Rand with a rueful chuckle, “It took me about two or three weeks to explain to my grandma that I was not going to be working in a call center.”

[rikke]

My opinion to this current event is that I think it is it is good that India has such a good outsourcing,
Because that will help them to become a better developing country, they get money in, and start companies in other countries. Outsourcing is an important thing to develop, because you help others, and you open companies in other countries, and your company gets popular, and interesting, so people wants to work for it, and buy that the country gets more money.

What happens in this article is that they are talking and telling us about how India is outsourcing, and what countries they are outsourcing to, and where. They also tells us about different companies there are outsourcing. And one of them is Infosys, and actually there are people their say no thank you for a job at Google, because they rather want to work at Infosys.

-How come India is such an outsourcing country, when there are so many poor people there don’t have any job?
- What was so good about working for Infosys?
- How did Infosys become so famous, and needed a lot of places?
- Is India really number 1 location for outsourcing?
- How do the companies get money to build in many other countries?
- And what is it many of the companies work with?

Actually I don’t think India will stay as number 1 for outsourcing so longer anymore, because there are countries there are better developed, and have a better economy than India.
And India still has millions and million and millions of poor people, like for example there are more millions there live for less than 20 rupees each day for a family, so I don’t know how good that is to help the country to develop, not much.
But maybe they are good for outsourcing, I just think than maybe a lot country will take over, a country with more power.

There are other countries there also are outsourcing such like countries in Europe and America, and they also have countries, they have in other countries. Like when a country’s company comes to another country that is outsourcing and that is around the all world.

[yeeun]

Summary)

This article is about the increasing number of BPO in India and Indian outsourcing workers all over the world. In addition, not only Indian companies but most of foreign companies use Indian Infosys. Then, why Indian Infosys are used more than other countries?

The first reason of this increase of BPO, in India, is that India is better English using country than other developing nations, such as China, Mexico so on.. So this is why Indians are all over the world if there is an outsourcing job which needs more workers.

The second reason of this increase is that India also has full of workers like China. So whoever can speak English then, they are easily hired, and this outsourcing job does not care about the status, Caste. So this is again why the increase is active in India.

But it does not mean Indian outsourcing companies are just used by foreign companies. They are also getting smarter. They enter other developing nations and expand their specialty because they know that other foreign companies easily do not use the other developing nations¡¦ outsourcing companies, which do not have enough experience.

So today¡¦s India outsourcing companies are the most popular job people want to have, and it itself is getting really smart and professional. Some Indian workers even train other workers not just in India but other countries. Therefore, though an outsourcing company is not that productive as a heavy industry, it is necessary for every company so it is still continuously used.

Well, my opinion to this article is a question, ¡§Do people really feel happy with their job?¡¨ This job is probably good for poor people because they can be actually treated fairly and gets better pay. So this is also good for the Indian government to balance the poverty and unemployment problem. But on the other hand, this balance does not mean it can answer my question. I would say people are not having a job which they actually have dreamed about. For example, in the documentary video, a woman who was doctor changed her work to a manager of an outsourcing job. She said the reason she changed her job is because she can get more money than being a doctor. Though that is actually true in India, people need to think about their future when India is pretty developed in all the works. In addition, in future, such outsourcing works will be really common all over the world. Because: in that time, all the countries will be able to use English as fluently as India. So I think it is smart that Indian outsourcing companies expanded their countries in even developing nation. But on the other hand, because of this fast movement, Indian youth only think about BPO as their future job. So I think it would be a huge problem in the future, when the world gets really flat, if Indians are all still working in BPO most, then there is a chance that India can lose their own countries¡¦ specialty. Therefore, in some way, I disagree with this job.

„» Here I just want to talk about how the BPO is progressing in Chennai. From ¡§the Hindu¡¨, I read an article about BPO. It said; since India started developing its technology got much better, so today, people even do not have to move around the entire world. So only thing they need to do is just staying in an office and pick up the phone. So again, in here, I think as the world gets flatter and slimmer, it would not be good to India having this huge number of BPO because as this article showed, it can even solve the population problem; it can spread people to the other countries.
„» (Unfortunately, I don¡¦t know how to upload this image though I scanned this article with my scanner so I will bring it with me on Monday.)

My questions:
Is there any future for other Indian companies if all the elite youth are working in BPO?
Are the people, working on BPO, paid well as they work for 24 hours?
How many people actually students can get an opportunity to learn English?

[eunjucho]

This current event is basically about India outsourcing their outsourcing, according to this article. I didn¡¯t get what outsourcing outsourcing meant but now I know what it is. Indian outsourcing companies are opening outsourcing offices in other countries other than India to make their work easier, quicker, and to beat up their rivals. For instance, if a company from China wants something in Chinese and use Wipro, the workers in Wipro would send this information to their offices in China. You can see how it works faster because most of the people in India can¡¯t speak Chinese and if they do not have back offices in China, their work will get more complicated.

Infosys, Wipro, Tata and other service companies are opening these offices in Brazil, Uruguay, Europe, and even in the United States of America. According to this article, the employees even rejected jobs offered from Google to work in these service companies.

These companies are even training people who do not have any experience with software knowledge which is good because they do not have to spend so much money, according to this article.

I found this article very amusing and interesting. I didn¡¯t even know about Infosys and others. I thought they were other foreign companies.

Well, this shows how India is growing fast and expanding even though it is still a developing nation. These companies have found a way to grow their companies and make them useful. I think outsourcing their outsourcing is beneficial for Indians because now, other big companies look for Infosys, Wipro, and other Indian service companies for their jobs to be done which means these factories earn a huge amount of money.

In addition, these service companies provide countless jobs which is good, too, because a lot of people will start to earn money. As you know, India is one of the highest populated countries in the world. These things surely will make India a better and more developed country than it was before. Well, not only India but other developing countries that have back offices because, like I said, these offices provide a lot of jobs.

One thing I want to know is, how could India have become a number one nation of service companies? I think it¡¯s really interesting and cool.

In the future, hopefully, more companies would use service companies like Infosys so that India could develop and become a better nation.

[miriam]

Outsourcing Works

In this article India is not portrayed as the poor developing country we are used to read about but as a country using strategies we normally only hear of in connection to first world countries: outsourcing.

Outsourcing as a way to boost production and save money is used by many first world countries and is often done into India. The most commonly known area where outsourcing takes place are call centres, as mentioned at the end of this article: ‘It took me about two or three weeks to explain to my grandma that I was not going to work in a call centre.’

This article describes how outsourcing from first world countries to India in different areas (for e.g. I.T. technology) has led to ‘outsourcing outsourcing’ by Indian companies. This means that, for example, companies from America approach companies in India for their outsourcing needs, as they are reasonably cheaper than any other country, which then leads India to outsource to Mexico. So what Indian companies do is they settle down in many different countries around Europe and America and hire locals in order to be closer to the client which results in an order travelling 7,000 miles from America to India only to end up 150 miles off the United States borders.

Those companies, for e.g. Infosys, are making good money with a clever business strategy and there is nothing wrong with that, in fact I agree with it. Nevertheless it would be extremely helpful for the entire development of India if these successful companies would develop a social conscience and spend some of their profit on local Indian issues, for example: Health Care, Education and Housing. They should of course fist of all make sure that their employees and their families are well taken care of in reference to the above mentioned local Indian issues, yet once this is complete they should still continue helping the people that are not connected to their company in order to end up with a fully developed India. If every person in every company does a little bit a lot can be done.

So far in most of the articles that we’ve looked at in this discussion forum it was always very clear what the author’s opinion on the topic was, therefore it was very straightforward when it came to building your own opinion. It also helped when making a conclusion and (if it was something bad that happened) a solution to the problem. However, in this article it is just being stated as a fact that Indian companies are starting outsourcing, without really having an opinion present.

For my part, I think that the fact that ‘India is outsourcing outsourcing’ is great as India is playing the global market at last, as long as they develop, and once developed keep, a social conscience.

[sohee]

Outsourcing Works, So India Is Exporting Jobs

This current event is all about Indian outsourcing works. Recently, the company seeks are becoming the global matchmaker for outsourcing in the world and it helps the countries to develop. Many people know that Indian outsourcing is increasing highly around the globe and it will increase more and more. In this article, S. Gopalakrishnan said, India continues to be No.1 location for outsourcing.

Lots of companies in India are spreading out to the whole world. For example, the service companies such as Tata, Wipro, Infosys spreading out to Guadalajara, Mexico, Brazil, Chile, Uruguay, Canada, China, and etc. Also its outsourcing experience in India had taught it to carve up a project, divide the works to workers, check the quality of the goods and export, and reassembled product to the clients. And though work that bypasses India remains a small part of the business in India and it is keep growing.

My Opinions and Research

Base on my research about the outsourcing, the outsourcing is the new way of the international trade and it helps the economic development of the countries. It gives lots of benefits such as taking advantages of the coast, the business develop a lot and increase the profits, and increase the efficiency. But the real problem of outsourcing is the outsourced workers often find themselves with no choice but to accept the lower-paying jobs which are totally unrelated to the skills which they have learned for their outsourced position.

So in my opinion, it is good to outsourced for the development of their business and increase of their profits but they also have to think about the disadvantages and they should not just hanging on the outsourcing.

Here are my questions:
1) Can¡¯t they develop without outsourcing and spread out to the whole world?
2) What is happening to the other countries¡¯ outsourcing?
3) Can a person do the outsourcing works who can¡¯t speak English?

[sparsh]

This article shows how the company called Infosys is outsourcing. It shows how India is "outsourcing outsourcing".

Infosys, Wipro, Cognizant are huge companies and are all outsourcing. A cognizant bulidng is right next to our school! Infosys is number one and is expanding even more. It is expanding and outsourcing in such a way that they are unbeatable. Infosys and other BPO countries are expanding in various develpoing countries which make those countries develop faster.

The article also talks about how people are turning down job offers from GOOGLE and going to infosys. When i read that i was shocked. Google is like the best and most famous search engine. Reading people taking Infosys jobs than google you can just tell how good Infosys is.

They are training novices which is good because not only it saves them money but more workers will quit their job and learn new ideas and skills from Infosys.

My father's BPO company did the same. He trained novices and that saved him money and more people were influenced to work and learn this system.

My opinion is that this is very good what Infosys is doing. Expanding their buisnees around the globe. I dont really understand the "New outsourcing" "A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border. " I dont understand why they would do that.

I like it how Infosys wants to know everything happening around them. If someone is buliding a company nearby or 10,000 miles away they want a call. That is very smart of them.

Why do the new outsourcing?
How is this affecting the GDP of india?
Is this helping India or the developing nations the offices are in, OR BOTH?
Was the video we saw Infosys?

Overall Infosys is doing some clever market and buisness strategies and that is why it is one of the largest outsourcing companies.

[hawklim]

This event is about the Indian companies that growing through the world and being globalize day by day by gathering the foreign workers who can do better jobs than how Indians doing. The companies growing so fast, they are Tata, Infosys and Wipro. Tata is known as almost the symbol of India¡¯s car industry. Infosys is known as india¡¯s technological giant. These three companies will be the leaders of Indian economy.

These days, having job is the hardest thing even harder than go into good college. Many companies demand for good grades in school lives for people who try out. It is also affecting to know someone in higher level of society. People who want job sometimes pays bribe, so that they can be one of company¡¯s member.

In this article, Tata, Infosys and Wipro built their factories in the developing countries, but I think Korea and U.S are countries, which need some factories. In Korea, over forty hundred thousand young men who graduated college and lived in good family, but do not have a job and have nothing to do. In U.S, there are people who need job for their family and for their credit document. I think that in the future, there will be also these kinds of situations in India. In Korea, there is an expression ¡® Navel is bigger than stomach.¡¯ Which means what we do not need is more than what we need right now. These situations will be increase as the population of Earth getting bigger day by day.

[sofiekh]

“India continues to be the number one location for outsourcing” says Mr. Gopalakrishnan, CEO of Infosys. However, “the future of outsourcing is to take the work from every part of the world and do it in every part of the world.” As Infosys senior vice president puts it. This is exactly what India companies with expertise in outsourcing are starting to do.
From new back offices in third part countries like China, Mexico, Vietnam, Thailand and even low cost regions of United States, Indian companies are serving their western clients. Although the majority of the outsource work is still being done in India, the work that is further outsourced to third part countries is growing fast.
As a result of this further outsourcing rather interesting situation can be observed: an Indian company working for an American client outsourced parts of the work to their American back offices, where it is being executed by American engineers trained in India.

In my opinion it is very satisfying to see that India from being a centre for outsourced low level work is benefiting from their expertise in outsourcing and now is further outsourcing to even western countries. This is really globalization!

One of the problems with Indian companies’ further outsourcing could in the future be that
There is no need for the Indian companies. This is similar to retailers having problems do to net trade directly with the manufactures. E.g. Dell computers.

[divya]

This article brings up an interesting twist to the topic of globalization. India used to be an attractive place for investors and entrepreneurs but now late-comers are trying to create their own economic boom in other developing countries. This also includes business people in India who want to increase on their profit these days. After years of receiving jobs, they are now in a financial position to start giving jobs to countries such as Mexico as stated in the article above. I think this is interesting because I still remember in the late 90's and early 21st century when I was living in America and many people were enraged that they were being laid off because of a rising power, India. Now, people are getting their jobs back because Indian companies are looking to branch out all over the world just like foreigners were looking to do in India.

Many people ignore the companies that were originally started in India and now these companies also want to make a break through. The companies are looking at companies with potential or who have shown some economic strength. This is globalization happening before our eyes and we need to realize that this is affecting our lives dramatically and it can be good or bad as many people have observed. Globalization ensures communication between people and the spread of cultures but the inevitable effect of homogenization or westernization.

Companies want to cater to all types of people, not just English speakers and the need for multi-lingual employees arises. I think that it is a good idea to branch out and look for new opportunities because people all over the world should have access to the services being provided and it is also beneficial for the Indian companies because the more people means more money.

This is an interesting article which is a different take on outsourcing because we only think that super powers like the United States are outsourcing to developing countries like India, where in reality, many countries are imitating this example and maximizing on the opportunities. It applies to us more because it is happening in our backyard.

[pyeonchan]

This article basically describes the current situation of outsourcing in this world. It shows the diverse types of outsourcing and reveals a variety of countries and companies which are focused on the outsourcing.

The center of business process outsourcing (BPO) is known as India and Indian companies. The most prominent factor that the Indian companies were able to set up a high status quo in this market was the ability to speak and use English rather than any other developing nations such as Mexico, China, etc. The advantage of language enabled Indians to work and become the best in outsourcing market.

However, in order to get more profits from these works, the outsourcing companies also become intelligent and use other developing nations for their work. The professional Indian workers, who are experts in this field, train the workers in different developing countries. By using these developing nations by Indian companies, the Indian companies can gain more profits and make the stepping-stone to set up the overseas expansion. They finally export the jobs in the other developing nations.

The diversity of outsourcing work is very impressive for me. What we generally know about the outsourcing was the fact that the Indian companies have occupied the most outsourcing works that was given from the U.S. or European companies. But the competition among the companies to get more outsourcing works become serious, but it is still fact that the Indian companies still get the most of them. The overseas expansion is way to utilize the advantages and it abbreviates the wages. It must be peculiar situation that the developing nation creates the jobs in the other developing nations.

Regardless of this topic, I believe the extreme imbalance of workers in one field is not helpful for the development of India. Obviously, the outsourcing allows the Indian workers to get a lot of money in comparison with the other fields. It must be the good aspect of outsourcing works in India. The abundant payment from the outsourcing works to support themselves regardless of their caste or social status will create a lot of changes in the Indian society. Nevertheless, the higher wages make the Indians only to become a worker in outsourcing companies. There should be more choices to get the diverse types of jobs with the similar amounts of payments. Many fields of Indian industries still need the outstanding manpower, so the extreme preferences for the outsourcing job can create the unbalanced society.

To conclude, the creation of jobs by the companies of developing nations¡¯ is very interesting point that is revealed in this article. It is the new concept of globalization. Perhaps the developing nations get one more way to cooperate and help each other for their co-development.

[rahel]

Outsourcing Works, so India Is Exporting Jobs

India is finally outsourcing jobs. Well in one way this maybe really helpful in another way tough there could be some problems. For India as a developing nation it is very important I think to try out new things and also shift offices as well as some workers to different countries. This as you may see works because while India sents their workers to these different countries it also makes them learn that perticular language. This is really helpful. Many younger people now quit their jobs for all these big companies like Google just to work for Infosys. This I think is because not only can their learn new skills but they also have chances of being able to do something different.

It is good to spread the company to many different countries which speak different languages. Many countries are also looking at this model and are tring to challenge it. This is good because this time it is not india looking at other models. India with its huge population did something which I think is good- when opening a new office for Infosys in a different country it dose not only take the workers of that country but mostly workers from India. They have noticed how many people are workless in India and have then mostly said that Indians should work in the company. This as opened new jobs for people as well as new hopes for those who did not have a job.

What I think they should not have done is to let so many foreigners come into India and take on this jobs. As it said in the article there are now more and more foreigners roaming around in the office. In one way it is good but in the office in India they should not have let them come because I mean what will happen to all this people who are jobless? There are so many and if India lets more foreigners into the country before taking in consideration the people who don’t have jobs then I think their will be a huge debate as well as maybe some violence. It is good that India is doing outsourcing but it should also be so that most part of the workers are Indians.

Now I have stated the positive as well as the negative points of this article. But what I hope for India is that it should be careful because if it allows to many foreigners into the country when there are so many Indians jobless then their could be some violence present. That would not be so convienent as India is not a very rich country and if it has to pay for the damages which might happen through this violence then it will again loose money. It would be there fault anyway and then they have to also pay for it. As it would be easier to keep an eye on how many foreigners they are letting in, instead of paying this huge amount to repair. Otherwise apart from that I think it is good that they have oppened a lot of companies in foreign countries which are developing as well as some which are already developed. I think this is a huge step and has also opened many hopes for the people of India. I wish them good luck and I hope that in the future they are careful.

[arpitav]

This article is about the outsourcing that is going on India. Infosys, Wipro, Cognizant are all huge companies which are outsourcing. Infosys is the major company and it hasn’t stopped growing. The rate at which it is expanding is making it hard for other companies to compete with. Infosys and BPO are not only growing in India, but in other developing countries as well. They are starting these companies in countries such as Brazil, Uruguay, most countries in Europe, and even in the United States. These companies are making those countries develop faster. What surprised me the most after reading this article was that people were actually turning down jobs with GOOGLE to work at Infosys or one of these other major companies.

Some of these companies, like Infosys, are training people who are not familiar with software, which is a good strategy because they aren’t spending huge amounts of money doing this.
This article shows how fast India is expanding. Outsourcing their outsourcing is very useful because it means that other big companies look to Infosys, Wipro, etc., for jobs, which means companies such as Infosys and Wipro bring in huge sums of money.
On top of that, more jobs were available because of these companies, which lets more people start working and earning money. India has one of the highest populations in the world. These companies are certainly speeding up India’s process in becoming a developed nation.
One thing I was wondering when I finished reading this article was how come India is the number one country of outsourcing? How come it’s not one of the already developed countries, like the United States or Europe?
I think that India will become much more developed because of “outsourcing outsourcing”.

[jihyeyun]

It is interesting that other European countries and America send their works to India, China, Mexico and other countries. The reason is that the price is much cheaper than hire people and work in their own countries. In the modern world, technology has so developed that even in the other countries; it is easy to take other countries to do their works. Bringing this western industry to India, really help to employ more people in India who do not have jobs. Also this is good time that India can show the trained technology and other skills. To satisfy the outsourcing companies from the western, people should have the language skills like basically English, sometimes Spanish and other languages. The business process outsourcing (BPO) is one of western industries that are fast spreading all over the world. This industry helps the countries to provide better services and to open companies in other countries. One of the reasons that outsourcing companies attract people is lots of income than other companies.
India has benefits from this industry. As 80% of employees are women, they may are busy working, earning money and marry late and have more time. Also, Parents will change attitudes toward daughters. Independence will be given to women; they live far from parents to go to work, more open to interpretation and more freedom. Finally the role of women in society will be changed along with the position in the society. The new westernized industry brings another positive concept to India. The wall between genders is more open from the mixed gender environment in the company. And it will not lead to the arranged marriages. In addition the confidence from earning more money than other jobs may provide strong motivation to job.

Prediction with research
The current problems of this industry are some moral issues and I can predict some of problems in the future. This industry has the western ways of working and environments. Thus, there are more casual sex, eating meats, dug abuse, alcoholism and other problems. The young adults who do not have the maturity or responsibility to handle their actions just rush to copy the western culture. People working late at night lose contacts with families and neighbors. And People can have this job only a period of time because of health problem and lack of time to meet their friends or enjoy their life.
I find this article interesting because we can predict a lot of negative effects and also benefits of this industry coming into India. Since this industry newly has come to India, it may take time to see the significant development from the industry. However the obvious thing is that outsourcing companies are fast growing and Indian people are getting more income and jobs.
What will this industry eventually affect to the country like India, still under developing?
Does this industry can help to reduce the gap between the poverty and the wealth in India?
How will the changes in culture affect India?

[yulli]

-Outsourcing Works, So India Is Exporting Jobs

This article mainly talks about rapid growth of India¡¯s BPO Industry. According to the article, India has become the number one outsourcing industry in the world.

Usually call centers were viewed as an example of BPO industry; however, there are several bigger industries perhaps much more complex than just call centers present within the BPO nowadays.

Surprisingly, many people have rejected Google for Infosys Technologies, one of the biggest Indian technologies.

From the article, it said that to expand on their businesses and still be able to maintain the superiority of their rivals, Indian companies are hiring work people and are opening new offices around the developing nations. As an example, Tata now has a back office in Guadalajara, Mexico and has nearly 5,000 workers in Brazil already. Another India¡¯s biggest technology service company is Wipro and it announced to set up outsourcing companies in Canada, Portugal, Romania and Saudi Arabia. In fact, not only developing nations but some parts of the United States where the places are least likely developed in the U.S.

Since the BPO is increasing fast around the world, workers need of learning new languages in order to communicate thoroughly with their clients also increased.
¡°More than a dozen languages are spoken at the Infosys office, which is in Brno, Czech Republic,¡± said the reporter of the article.

My opinion on this current event is somewhat balanced. I think it is good for India to expand its business all over the world so that the economy can also develop. BPO industry has an essential aspect to a company because without outsourcing companies, the works would be too much or too complicated for the base company. Thus, in my opinion, the spread of outsourcing works is a positive affect on Indian companies like Tata, Infosys Technologies. Etc. However, this old perception that people have should be clarified. I also thought that call centers were the only BPO industry in India and some people still think the same, thus, this misunderstanding should be cleared by perhaps Indian companies.

Outsourcing industries are very largely known not only in India but all around the world. I found an article about BPO industry from the Hindu newspaper and it had several similar meanings with this current event article. At first, before I came to go in depth about outsourcing, I had no idea what it really was and why it was important for the companies but now, I think I have maintained thorough understanding of those questions.

In addition to this, I think that BPO industry will increase more and more as the time goes and other countries will try to catch up the outsourcing jobs, to become much bigger than Indian outsourcing companies.

-My questions:
Why did India become the number one BPO industry in the world? And what¡¯s some of the negative affects of outsourcing industry in to India?
I saw some of my friends¡¯ questions and I totally felt the same with them. I was so puzzled at the fact that why India has become the biggest outsourcing industry though out the world. Except for the reason that Indians can speak English as well as they speak their own languages. And I am also very curious about what would be some of the negative affects of BPO industry to India¡¯s current economy state.

Hopefully, outsourcing jobs will increase in numbers and peoples¡¯ views on BPO will change soon, I hope.

[sam]

To Arpita
From Sofie and Sam:
Even though yours wasnt as long as everyone elses, you still hit the main points. You managed to summerize the article and give your own opinion at the same time. Maybe you could have had more insight, but it was still good.

[yulli]

Response to Hawklims response:
we (yulli, Miriam) thought that eventhough your response was good you could have maybe added in your opinion about the topic at hand and done some further research.
good job. ;D ;D

[rikke]

For Hawk !

I would say the reason that Korean people cannot job is pretty different from the reason that Indian people cannot job. Because: I think, since there are so many people under poverty, this BPO is actually a chance for them to work. But on the other hand, in Korea, the reason they cannot job is because every one wants high-pay job and that is extremely for small group of people. So I think, the reason Korean people cannot job is because they want something more professional like doctor, lawyer so on... well, later, i would like to hear your comment on this. How do you think about it Hawk? Do you have any other reason that Korean people cannot job?

-From Ye Eun and Rikke

[divya]

arpita, i was wondering why you think india will develop more after the outsourcing? what benefits does it give to the country of India, not just the companies?

jayanth, divya

[pyeonchan]

For Divya

I was also very interested in the fact that the companies that gives the outsourcing work is the Indian companies, not just American or European companies. It must be the new situation that comes up with the current industrial, economic changes in the world. It also reveals that India grows very rapidly rather than any other countries in the world.

[jihyeyun]

Divya I absolutely agree that globalization spread cultures of many countries and sometimes westernization affect some negative effects to the other countries. I like your insightful comment. : >

[sam]

-Outsourcing works!

One should look at all the advantages put forward by these outsourcing companies. If you actually look at the number of people who are living on such a low salary in India and then look at what these people are making in one year, then think about it and weigh the negatives versus the advantages. A lot of these people are not only working to support themselves, they are also helping their whole families. A whole family can live off one of these outsourcing employees’ salaries sometimes better than people living off the money earned from other jobs.

If you ask my opinion, I think that outsourcing is actually a very good thing for the Indian economy as well as the society. The number of new jobs opened at this new concept is considerable, as well as the advantages and job openings in other countries as well.

If the young Indian people can build up to something and get good jobs based on this outsourcing, then all the better. They can grow up saying they want to do this and succeed rather than growing up knowing they’re just going to do the same things that their father’s did before them.

This also opens new opportunities for women as well. Instead of women just getting married at a young age and expecting do all the normal things women are required to do, rely and their husbands for support and have virtually no independence, they instead get to have a more than decent job, make a fair amount of money, and if their parents allow all this, marry whenever they want.

I’m not going to deny that all this may cause some clashes in the culture. Not continuing the family business, not getting married and settling down as usual, doing more modern and western things such as going to clubs, having roommates, etc., are only a few of the reasons that may cause some problems. Come of these problems can even lead to extremes such as the disowning of the offspring.

However, if you examine all the facts, you will find that the advantages, for the time being, severely outweigh the disadvantages, and that’s what the all these people are making their decisions on. Development is going to happen sooner or later. People can only sit back and hope for the best.

Outsourcing is a convenient answer to many different problems that India might be facing today. this is a very interesting article and opens your eyes to the development and the change happening right in front of us.

[jayanth23]

This article is one of many that describe the growth of IT in India. None of the facts really surprised me. First of all India has one of the richest and the poorest people on the face of the earth. Meaning that the rich get richer while the poor remain poor. This has a great impact on the economy. Not everyone is given the opportunity to come up in life and that is what really hurts. With the growth of IT in India only the rich benefit and not the poor. Having said that, the thing that catches the eye of the companies that outsource work to India is the cheap yet effective labor. Since Indians are getting paid high according to their standards and getting paid low according to foreign companies everyone is happy.

But what if the Indians ask for more money and realize the fact? I think this is what has happened. Because of this the Indians themselves have begun to outsource as they are making more money. Is this a good thing? Well I think it is, it gives an exposure to other countries like the ones mentioned in the article. It provides a foundation in which the countries economy can build own

How does this connect to the big idea? Big companies like Infosys and Wipro have provided the breeding ground for young and enthusiastic programmers. It is now the job to be in. They have provided the world with more and more jobs and drastically improving the economy of many poor countries. But if these companies themselves outsource then why would the major companies go to them and someone else? That is the big question and only time will tell.

Goals is another thing! More and more kids (including me) want to be the next Steve Jobs or Bill Gates. But that is not going to happen because of outsourcing. There is more and more competition and companies strive for better products. The IT business which was isolated in a few countries has now spread to all the corners of the globe because of outsourcing. Outsourcing is probably the only job that can be done anywhere and everywhere on earth.

[sujata]

This article is about outsourcing and how it's affecting the world in a very positive way. It is basically about a company in India, and how infosys ( the company) is giving many people all over the world a job. It's hard to believe people from google are turning those job opportunities down to come work in India.
Infosys also has companies set up in many parts of the world, as the article stated, which means it gives jobs not only to Indians, being an Indian company, but also to many other nationalities where it's offices are set up.
Outsourcing in India, directly obviously affects Indians, but it also affects all the countries it deals with. It makes it cheaper for places like the United States to use outsourcing in India, because what they pay a person is the U.S. $1 per hour, they're probably paying 10 cents an hour in India, and are getting the same job done, with the same about of efficiency. It indirectly affects the whole world, and countries that are also not part of it, because in some way or another, those countries are defiantly dealing with countries it does affect directly.
This article is about how an Indian company "inofosys" is outsourcing, and is setting up branches of its offices in many parts of the world not only India, which is a huge benefit to poor people in those parts of the world too. It's also about other outsourcing companies and how they function. This outsourcing is very important in the world today, for more than one reason, out of which I think these two are the most important - (1) it gives people jobs since it requires a lot of workers; (2) it lets developed nations get the same work done cheaper, which gives developing nations a chance to make more money, and develop quicker.
From what we've read and seen about outsourcing, the only thing i can predict is that it's going to become a big industry, and will be the income to many families, and the solution to many children being educated.
This event is very relevant to developing nations, because outsourcing is one of the chief forms of income for many developing nations like India.

[eliasse]

Work in India

My opinion about that India is exporting jobs in all world, is almost right for me. Yes is true today most of the companies of the world are coming here in India because the handwork is very cheap, so gigantic companies such as Hyundai, or Suzuki are coming here and make lots of fabrics.
My father for example decided to came here under request of his company that moved in Chennai many leather’s factories, so they also nedd a laboratory here were my father can test new kinds of colorurs on different kinds of leathers.
But this thing could be ok?
Maybe on the first years can be ok, but with the pass of the time the people that wants to came in places like in Chennai decreases for several reasons.

-The language
-The family
-The age
-The salary

These problems always can change the future of a company, is already happen that some leather’s companies had change their position from Chennai to New Delhi or China.

So lets come back about the problems that afflicts the workers that came from their hometown to other countries. First the language, always many people go to another place without any information about the place and also about the language, without it a worker can’t communicate with the people that are working with him, you can be in Spain, Mexico, India, or China, but if you don’t know the basics you can’t show to your workers what they have to do, what is your position in the fabric, and most important, who give order and who receive order.
Another is the family, today most of the people theat work have a family, or someone that lives with them, so when you move to another place, you have the continue oppression of the family, how they are? Are any problems at home? Your wife, or sister, parents are ok?
This usual questions afflict a worker everyday, and sometimes this comport to you an infinity of troubles that send to you a ticket to home.
How about the salary and the age? Is the dream of each young workers of today to learn lots of money, have millions can be something of special for a person, so all of these young boys everyday asks more money, and when the argument Is go out form your county, here is the greatest problem.
For example when my father asks to their superior to have the permission to work for them outside Italy they were surprised. For them was the first time that one of their workers decided to go outside. They said that most of the young workers doesn’t like to go outside, and the few that they found required to have a salary of 20’000, or 30’000$. So for them was amazing to get one worker without any constrictions and with a regular salary.

So my last comment is that is great idea, to export the work in all world, but this thing must be control, because like a little hole on a balloon, if you don’t try to repair this hole, it will become more bigger, more bigger, until it will explode, and this can happen also on a company that try to make his own work on other places, like India, if the responsible of the industry don’t control the workers, and most important the people that are sent in India must be controlled because a little problem and others will come until the complete destruction of the company and of the dreams of all people that spent lots of millions in this thing.