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

[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.”

[zachghaderi]

outsourcing outsourcing.

that shows how complex the world is. it also shows how companies know to take advantage of advantages. they know that what they are doing is working and catching on to other companies. they then need to hurry up, beat the competition, and set up shop in other developing nations.

developing nations
helping develop nations
by outsourcing outsourcing
and taking advatage of their advantages

[julie]

Outsourcing Works, So India Is Exporting

Now that I understand better what outsourcing means, I can understand, after reading this article, that it is very useful for companies. In any parts of the world, companies can make some people, in any other part of the word, work for them, and all that only with the help of the internet. These days many companies used the outsourcing system, also called BPO (“business process outsourcing”). It is faster and cheaper, for the companies, to make people do some work in India by the internet than hired secretaries, by example.

Because outsourcing business is working well for these “technology services companies”, they opened others services companies, of the same brand in different parts of the world. For example, if a company in Spain asks to Infosys, for some work to be done, in Spanish; Infosys, in India, is going to send this work to Infosys, in Mexico, where employers speak Spanish. That is why, I think, outsourcing outsourcing, is an easy, fast, good, and cheap system for companies around the world. Another advantage brings by outsourcing outsourcing is that it creates new jobs around the world. In addition, I read information about outsourcing on a web site (infoblogs.com), which says, “Outsourcing Works and so India is exporting jobs.”

I think this article also make us realize that Friedman was right when he said, “the world is flat”. Outsourcing proves one more time that the world is definitely flat.

[niranthara]

After reading this article it helped me understand what outsourcing outsourcing meant. The idea of distributing work around the world, to give opportunities and allow people in developing nations have as much convenience as others in developed nations was very interesting.

Business process outsourcing is one of the most advancing and attractive business today. Countries that are more developed outsource parts of their businesses that could be done more efficiently, at a cheaper price in developing countries. Even though one would think that the advantages of doing the process at the home of the business would be more (cost, distance and time), it actually is more beneficial else where.

Since outsourcing plays such a large role in development, outsourcing businesses have found new ways of making this a more powerful and effective business, by outsourcing their outsourcing. For example a doctor in France needs his patients illnesses to be recorded, considering that it is a rather small and tedious job he sends the records to India for it to be documented. Since the people in the Indian outsourcing business don't have the opportunity to learn the language, the Indian company sends the data to its branch office in another developing nation with French literates like Morocco. This process is more like trade, just through the Internet.

I found this very interesting because this is what leads to a flat world. It provides the developing nation with many advantages like:
[1] Providing jobs that are productive and rise people out of unemployment and poverty.
[2]It places the country at an international market because its dealing with businesses at that level.
[3]It puts them in contact with other developing nations, who could support them into development.
[4]It allows the people to become more exposed to the cultures around.

The article gives some good examples of how large companies like Wipro and Infosys are branching out into places in South America. These companies are spreading their operations around the world, and may become world wide brands. Many graduates from developed countries are also seeking jobs in developing nations- showing us that even developing nations have something to provide the world. This is also another example to show that people are begining to open up to other cultures and take the best of everything-glocalizatin.

Outsourcing outsourcing is a very beneficial business; as more of this is done the plane field will equal and developing nations will rise out of their current status.

[keisuke]

Well I am glad that this time the article was short. lol

Also after reading this article I leanred more about outsourcing and how does it affect on people. As I read this article it showed me how good is this outsourcing is and how it is making ideveloping countires to develope.
This article is mainly about how is India outsourcing and which country they are outsourcing.
Also they talk about different companies that they are outsourcing. Which one of the companieses name is called Infosys.

well the thing I am trying to say is that outsourcing is a good thing for India to do since it makes them developing even more than now. So I think that India should keep on outsourcing with other countries.

See you guys on Monday or 2 weeks later

[hisu]

I realize that outsourcing is a very complicated subject for disscussion and it has a huge impact on the business. This helps many people by giving many others jobs, but it also affects the life of some people too.

Outsourcing has become a huge part of all businesses in the world. Many countries from the already wealthy and developed countries spread their businesses to places like India to get things done much cheaper. People who aren't that aware think that it would still be cheaper to produce the products at home because of all the taxes and travel expenses, but it is still cheaper to have torches produced in India and exported to America then to produce it there since human labor is very expensive in those areas.

Since outsourcing is so useful some businesses are even starting to outsource outsourcing. For example if a famous doctor from Germany who always has a lot of patients has to make records of all the patients he has, since it is such a small and time taking job he can send his voice to India and have someone to write it out and fax or email it to him. Since it would also be kind of a waste of his time the Indian may send it again to someone else in China to have it done even cheaper. Then the Chinese person can mail it to the Indian person who can gain email it to the German doctor. This is outsourcing.

Outsourcing has advantages and disadvantages. Outsourcing can produce many jobs for the people in India, but then the people in the States who were doing the same thing will lose their jobs. If outsourcing has such a serious disadvangtage outsourcing outsourcing will have an even bigger disadvantage, since the people in India will also start losing their jobs.

I think outsourcing is not beneficial at all and it should have a certain limit. If this keeps happening the developing countries will start failing, because the average person in that country will start earning less.

[asifhilal]

This is the first time I have ever heard of outsourcing outsourcing.

What is outsourcing? It is when someone or a company give out jobs to people in other places of the world, because it is either costly or takes to much time for them.

However, now there is outsourcing outsourcing. For example, a U.S company needs a job done that they won’t do themselves. Because of this they send the job over to India. However, instead of the Indian workers doing it, they outsource the job again. (This is where the term outsourcing outsourcing comes from?). The Indian company already has offices in other places, so they send over the job to the offices in the “low-cost regions” that they have set up (such as offices in Mexico). When the job is done in Mexico, the people there send it to the company in India. Then India sends it to the main company in the U.S.

It works like this

U.S needs job done -> sends job to India -> India sends job to Mexico

Mexico finishes job -> sends it to India -> India sends it to U.S

In the end, it works out for everyone. This creates even more jobs in other countries. In the end the people in the U.S who need jobs done, companies such as Infosys, and the people who work in other countries who are doing outsourcing outsourcing jobs win.

[nitika]

I think that this is a very intelligent move made by the Indian companies.

Foreign companies recruit Indian companies such as Infosys to do a job for them at a much cheaper price. But now, many companies who recruit these Indian companies want them to converse in a language other than English or an Indian language. A language that is popular within the foreign company.

For example; a Chinese company in Nigeria, where 98% of the people there speak only Chinese would want the Indian company that are recruiting to converse in Chinese. Therefore, these Indian companies are opening branches in China, so they will send the Chinese work there. This makes the Indian company get the job from any part of the world and do it in many languages. The company would have to pay more or less the same amount since they value of currency fluctuates very little from one developing country to another, which allows these Indian companies to profit in every way.

Since, China has a large population and less jobs available, therefore, many people would flock to this kind of a job, since it is well paying and you get all the advantages possible. I found out that many of these companies have their own apartments built with all the facilities available for the people working in these companies to stay. If not, they help you to get financial aid for a place to stay. I also found out that these jobs don’t require you to have a very fancy resume’. You just have to be fluent in the language spoken, and your people skills should be good.

This helps the economy of India to grow in an indirect way. This a very sensible step taken by these Indian companies.

[priyankajohn]

Out sourcing started in late 80s by companies like Infosys, Wipro, TCS and Satyam.
Skilled and semi skilled laborers were plenty in India, thanks to the availability of large number of technically skilled English speaking workers. India became an ideal country of interest for companies in the US to look at outsourcing computer software related work.

In early 2000 apart from IT outsourcing, Indian companies also started looking at non IT related outsourcing which included setting up of call centers. This grew the requirement of people substantially. Over the past few years due to the increased requirement of people as well as the need for the varied language and other skills, leading companies like Infosys, Wipro, TCS and Satyam have spread their growth to several countries across the world. This has also become necessary as these companies needed to spread their customer base away from the US to other countries.

Companies like Infosys, Wipro etc in term of professionalism manage their business on par with the best US companies. As a result even young professionals from the US are extremely keen to work with them.. It is also important to note that the spread of the big Indian IT companies is not just to countries outside. Most of them are also setting up centers in the smaller cities and towns of India to meet their huge need for people. As these companies grow to smaller towns of India they truly develop and improve the conditions and infrastructure in these towns. They also provide lots of opportunities for people there.

Indian companies are not looked at like any cheap labor companies anymore because they deliver high quality services.

[elizabethw]

admin said:

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.”

[jungkyu]

What I have understood from this article about outsourcing was that it was the companies giving opportunities for the outsourcing companies to manage their less important tasks. Sometimes the companies entrust for tasks to get them done much more efficiently. Now days, companies are outsourcing for tasks that are more advanced. The purpose of outsourcing is to get much more man power besides their companies, and targeting to get the effect of decreasing their companies employees to work on less important task. In other aspects, the companies are cooperating with outsourcing companies that has skills to improve their businesses much better. But now, the competing of companies has augmented, and the demands for wages has increased, that the rivalry has become much more severe.

India is outsourcing outsourcing. It means that if the other companies send tasks to India, then India sends it again to other countries. After the tasks are sent to the other countries, the outsourcing companies from other countries handles tasks and sends them back to India, and then , India again sends it to the companies that had sent tasks to India. The benefits of outsourcing outsourcing gives jobs to developing nations, and it affects the countries all around the world. As a result, it helps other developing nations besides India to develop more, and have more opportunities in their new jobs.

[jozefien]

Outsourcing works, so India is exporting jobs

This article seriously surprised me. I learned a lot about how companies make profits by sending their activities to other countries, or with other words, how outsourcing is effective.
I knew that India has become a significant country in global trade, but I thought that that was only because of the low cost of the employees .This article shows that I was wrong. It tells about the fact that Indian companies are distributing the tasks that they got to other countries.

The main thought of outsourcing is moving tasks from one country to another, where the job can be done much cheaper than in the original country but with the same quality .The fact that India’s export has increased and that western companies keep coming to India proves that outsourcing has advantages for both the companies and the developing nations. Because India is so successful, other developing countries such as Morocco, Uruguay, and Mexico are also trying to attract western companies.

However, now Indian companies are taking steps to ensure their future; to prevent that the western companies will move their work to cheaper, more specialized countries; the Indian companies have started to make back offices in those countries themselves. In that way it is possible for Indian companies to get tasks that they would not have had if they didn’t have back offices.
For example if an Indian company has a back office in Mexico ,then it is very likely that Western companies will give it jobs that have something to do with Spanish, something that they would never have done before because Indian people normally don't speak Spanish,

So the Indian companies are also outsourcing. This process is called outsourcing outsourcing; a western company outsources some of its tasks to a developing country and there the work is again shifted to another country. In most cases there are three countries involved with outsourcing outsourcing, so that means that it avails 3 countries. This is very positive: there will certainly be more jobs because in each country the work has to be either coordinated or executed.
There are also exceptions, though; sometimes the final work is done in the same country as where the original company is settled.

This makes clear that nowadays the distance is no longer a main aspect of trade; with outsourcing outsourcing a product can have passed the whole world and still be very effective.

[sarah99]

India is the number one place for outsourcing in the world. Tata Consultancy Service and Infosys Technology are two big outsourcing companies in India. Another outsourcing company is Cognizant Technology Solutions, which now has back offices in Shanghai and Phoenix. India’s outsourcing is growing more and more. American and European countries are hiring Infosys and other companies to manage back offices in other countries nearer to them then to India! For example, the United States needed a Mexican team for a computer system. They retained engineers in Infosys who have shops in Mexico to get the job done.
But is outsourcing good for a country?? Is it good for the world?? Some people argue that because of outsourcing, some people lose their jobs. If people’s customers are calling other countries to get basic services for various reasons, the people who live near them who are doing the exact same thing (though maybe at a higher price!) might lose their jobs. I think, though, that in the long run, outsourcing is good for the country because it helps its overall economy and definitely the world’s economy as a whole.

[rmanu]

Outsourcing is when companies send their jobs to people in different places and get it done for the companies and send it again. For example, an American company sends a job to India, India will get it done and send it back to the American company. the Indian company might send it to China or other countries and will get the job done and China will send it to India and India will Send it to the American company. Most companies send it to India because it is cheap labor.

There are some advantages and disadvantages in outsourcing. The advantages are, more people in developing countries will get jobs, the poverty will get decreased in developing anions, and The countries economy will rise.

The disadvantages are the countries that send jobs to different place will not have jobs in their country. Because when people do the same job in their country will not have jobs because the companies send it to other places so due to this they lose their job.

The reason of sending jobs to other places is for cheap labor. This will damage a tiny bit of the countries economy. If this becomes a routine for the companies this will become a big issue and the countries economy will get damaged even more due to more companies more outsourcing and more lose of jobs.

The countries which have problems with Outsourcing should either stop outsourcing or should find a solution for the lose of jobs even though the country is outsourcing. All the countries should start to think about the problems of having outsourcing. If they do not it will affect the countries economy badly.

[xxlyra]

This article speaks about the curious phenomena of outsourcing outsourcing, a practice both beneficial and not-so-beneficial for India's BPO industry and her partners. It describes how Indian outsourcing companies have recognised the need for workers who speak other languages than English, and have therefore had an early start in providing services from these people by opening up offices and offering training for these individuals in other countries like Latin America and China. The wages for workers are rising in India, and for the outsourcing companies to offer the very best prices, they need to find employees who will work for very little, and this number of employees is dwindling in India but remains high in these other developing countries. Outsourcing outsourcing cannot be recognised as just 'good' or 'bad' - there are nuances that makes the matter a more complex one than that.
I have taken a brief look at these nuances, and have tried to create as objective a view on the situation as possible.

Speaking on the positive side of this strategy, people who would not necessarily have gotten an education gets another chance by being trained by masters of the outsourcing industry, and in this way, the developing nations can help each other develop together. It is a very generous gesture of India, I reckon, to help out other countries with what they have succeeded so majorly with, and in that way disseminate a bit of the favourable outcomes. By coming in contact with the surrounding business-world, the employees get exposed to a lot of new ideas form all around the globe, ideas which they can use and spread themselves. This is a chance to spread tolerance through international trade, something which is only beneficial to a developing nation. Also, the developing countries where the Indian companies' offices are located get a chance to experience international 'trade', and this might inspire the newly trained workers there to set up their own businesses and outsourcing firm, providing healthy competition and yet more jobs.

Outsourcing outsourcing is not an entirely beneficial affair, though; it has its less rosy sides

[kwangsampark]

This article is about India outsourcing its outsourcing. When a company outsources work or stuffs, it pays workers from outside the company to do the work. India is now outsourcing.

India is number 1 outsourcing country. Outsourcing is certainly an important source to the development of the country. It will bring economical growth to the country.

For example, in the article, there is Infosys technology. They outsource by making back offices in other developing countries before their clients do. With the help of outsourcing, people can now trade without any difficulties, and help each other. They are needing people who speak different languages to communicate through out the world. Not just communicate, but to compete with other outsourcing companies.

By outsourcing, the company will grow in size and number. Eventually, the growth of the company will develop the country. If the company grows and expand in to other countries. Infosys Technology, Wipro, and Tata Consultancy Service are hiring more people and espanding their companies, so they can become a global outsourcing companies. Infosys is building its back offices in Mexico, the Czech Republic, Thailand and China. Not just Infosys but also other companies are building in several countries.

The effect of the outsourcing will be massive. First of all, it would deffinately bring development to the company, and in a long run, to the country. Also by using people whom are much cheaper than any other companies, they would earn money, or temporarily get a job. If they speak different languages, they may be able to go abroad, and outsource stuffs. With the help of globalization, developing countries like India can develop by outsourcing outsourcing.

[jiyoung93]

What is outsourcing?

Outsourcing: The practice of subcontracting, manufacturing work to other side and especially foreign or nonunion companies. According to the Merriam Webster¡¯s Collegiate Dictionary.

After I read about this unsuspected article and skimmed through others¡¯ responses, I understood the matter better. India had different kind¡¯s advantages through other foreign countries. For example, more opportunities retain jobs and start progressing on developing nations; and improvement in business matter. All this feasible reasons have positive and negative sides. It can reduce the competition or accelerate the speed of establishment of outsourcing companies. Since India is experiencing the new movement such as outsourcing, it can affect them in various ways. Sometimes, it can influence the country lead into the good side. Indeed, the nation should be aware and be careful about every step that can causes mistakes. Still, in more faster and cheaper way, the people will have more opportunities of hiring employees and companies.

Such a company likes Infosys, Tata, and so on¡¦. should think individually and work together to make better outsourcing agreement, so that the people do not have to lose their jobs. This is a good step to begin with for India. In my opinion, India is developing the work force, which can bring a movement to experience the skill, techniques, and strategies from other countries. India has already entered the real world of economic and globalization of foreign trade. It involves people to organize by competing each other. This is a great chance for India to fill up their rudimentary companies. India has caught the chance to recuperate the problems for poverty and number of jobs. It can raise the quality of culture and globalization. Hope that India is able to control to make better nation. This whole process of outsourcing outsourcing is good for India in some aspects.

One question- I wonder or rather wants to know how India became the first outsourcing country.

[elizabethw]

The Article clearly establishes the fact that India is now, better known for its Backoffice Solutions Model. If an American Student can turn down an offer from Google and look forward to coming and working for Infosys... that explains it all! India not only leads in this industry, it also teaches and plays a role model effect over so many other countries including China and Mexico. The developed nations turn to India when it comes to any form of cost saving especially processing their jobs offsite.

The article also establishes the fact that Indian companies think well ahead and get on with serious planning and putting things into practice. For example the very fact Indian companies like Tata outsource the already outsourced jobs it gets shows that these companies want to be there even before the rivals get to these markets. The very fact that some American companies look to India to recruit Spanish speaking engineers shows the kind of confidence Indian back office outsource companies have earned.

Another trend that is new is Indian companies trying to "back to back" outsource to the very same couuntries these jobs were recieved - Wipro opening offices in Arizona.

India is no longer just known as a call centre country, but has instead conqured the entire back office business.

Outsourcing has now become a skill like Car Manufacturing and people from developing nations are turning down jobs from well known companies to come to India to learn this skill. According to the modern theory of development, people used to migrate from developing nations to developed nations to learn new skills and seek better life - reading the above article leaves a question: Is the trend reversing?

[tamsin]

This

[tamsin]

This article is about Inida outsoursing outsourcing.

basicly its talking about the big companys in india that are outsorseing. and the fact that there are stuff that happen like in america are compnanys who are out soursing indias compsnys. it talks about how in amercia people were outsoursing to inddia,.
Indai i outsoruseing to many coutnries. and are expanding. for example peopel reject to work for google becuase they rather want ot work for the company Infoses. so now that efects the indian develment because they are outsorcing and gwetting money becuase people are gunjna work for them.

Ooutasoruseing has develped really well, india are nwo getting more emplyes than ever becuase peopel from around the world are coming India to learn the skiills.

[sanjayvdasari]

Well that's a surprise, the article was relatively smaller, lol ;D. That rocks. Anyway:

The article is about India and outsourcing.
Outsourcing is when a company is told to do something. They decide that rather than spending an obscene amount of money on someone living here, let’s send the job to Morocco (example), they do these kind of things much cheaper there. That, basically, is outsourcing .
Outsourcing is extremely useful, companies save money, by getting the same job done in other places for less amount of money ;D. Outsourcing is providing many jobs for the people in India (and all over the world), hence reducing poverty, hunger, and unemployment .
By I think that since India is slowly but surely gaining money from other countries, they will soon be in the verge of being called developed. Hence, as developed countries tend to do, they will ask for a larger amount of money for the jobs other places keep throwing at them. Then, India will no longer be the one and only, no.1, area for outsourcing .
Some big hubs for outsourcing are Infosys, Wipro, Satyam, and TCS.
Basically, outsourcing outsourcing works like this.
Europe needs job done -> Europe's smart, so it sends it to India (That's outsourcing) -> India is a bit smarter , so it sends the same job to Papua New Guinea (That's outsourcing outsourcing).
When Papua New Guinea’s done with, it sends it to India -> India smartly pays a little money to Papua New Guinea and sends the work on back to Europe -> Europe take the work and sends back India a heck-of-a-lot-of money , which is probably 20x what India gave Papua New Guinea. Therefore, outsourcing outsourcing is beneficial, at least for the countries doing it ;D.

[zachghaderi]

sanjay:

good points
too many smilies.......v.v