1. In your view, what are the three key criteria a nation must have to be an outsourcing leader like India? Defend each of your answers.
Outsourcing articles
December 18th, 2006 · 16 Comments
Class Readings · India Unit
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16 responses so far ↓
1
globalspartan
// Dec 18, 2006 at 7:55 pm
1. The three main criteria’s are a very low labor cost, highly skilled work force, and good infrastructure for offshoring. India is so successful because people can work for cheaper and it’s the same quality as the things that are made in the U.S for more money. Also the people that are working are very good at what they do so they do fast and with high quality. “The executives surveyed also said that the impact of offshoring continues to grow with 57% citing outsourcing as critical forces reshaping the global marketplace”( India 1). The offsorcing is growing which is also helping India. This is why the India is doing so well.
Jamie I.
2
globalspartan
// Dec 18, 2006 at 8:04 pm
There are key criteria to a nation must have to be an outstanding leader like India. One of which is having a cheep labor force. They have employees doing the same amount of work with the same quality but it is much cheaper. This way they are not paying their works as much but are still charring the same price for the work they have done making lots of money. This is important when being a leader like India. The second is having a highly skilled work force. When most of the people working do everything right then a lot of money is saved. There is also a lot more material turned out which can then be sold. Having a highly skilled work force is very important. Lastly, taxing is important. Having the right tax keeping the citizens happy but also pulling in enough money to do everything that is needed is important. These are the three most important things in having a country like India.
Erika I.
3
globalspartan
// Dec 18, 2006 at 8:05 pm
1- Plenty of educated people to fill the Jobs.
2- Capitalist-friendly incentives that allow for easier business growth.
3-Sound infrastructure that doesn’t hamper business growth.
A nation must have the workforce first of all. Often times, this materializes itself as the migration of young people or displaced farmers towards the cities in search of work.
India did a good job of providing useful education to many of its people. This, coupled English as the second national language (after all the dialects of Indian are summed up as one language), allowed for India to provide capable workers to the huge American (or Anglophone) countries. If workers in India were under-educated, India would become a sweatshop, not a dynamic nation on the verge of modernity.
In looking at India, one can trace the decline of nationalist policy to the rise of economic growth. India has had a strong socialist lean for most of its sovereign rule. This seems to be a common mistake of many governments; politicians believe cutting off economic ties and nationalizing companies will increase growth when all they do is add to economic stagnation. Since the 80’s, India has provided companies with: a weak currency that is easily manipulated to benefit them; a low wage range; and a specific incentives that allow for a facilitated move to India. This type of economic environment is what a profit-crunching company is looking for in a potential outsourcing market.
Infrastructure is crucial. India has went head-over-heels to expand technological sector. Internet and the like are commonplace in metropolitan India.
Though incomplete, this is the “Hooked on Profit” tactics of savvy, modernizing nations.
sorry for beign the first to respond peoples.
4
globalspartan
// Dec 18, 2006 at 8:05 pm
i was the first when i started…. peter
5
globalspartan
// Dec 18, 2006 at 9:09 pm
For a nation to be an outsourcing leader like India there are certain criteria they must meet. The nation must have a large number of educated workers. It is important to have individual that are well education in a certain field so they do a complete job. Also these workers should be English speaking graduates so countries like the United States can employ these citizens. Another key criteria for an outsourcing leader is very low labour costs. “Only a few developed markets emerge as attractive of shoring locations with Canada topping the list due to its low labour costs” (India 2). The third key criterion that a nation must have to be an outsourcing leader like India is having a developed legal system. It is important to have a legal system so that in case something does happen to the company the government can settle the case.
Alli Berger
6
globalspartan
// Dec 18, 2006 at 9:20 pm
1. Reasonable cost of living is a key criteria because if the cost of living is too high then the people will be expecting a lot of money. So they also want to pick an area where the rate of wages is low so they will not be expecting a lot of money. Also a key criteria is having the location close to an airport so when someone has to travel there they dont have to travel far from the airport and won’t need more money for more traveling. These are good ways where the company will not need to spend more money and will be able to get a good profit.
Jamie W
7
globalspartan
// Dec 19, 2006 at 12:13 am
A place needs to have low cost both labor and a low cost of living so that the low payed workers can live close to their jobs also office rents and expenses will be low. Need good infrastruture which means there is good transportation both roads and airports. There also needs to be a good communication network especially for the internet. There needs to be a stable political climate so you don’t lose your investment and so that supporting industries will want to invest in it to. Nobody wants violence to disrupt the area where you work.
-torri c
8
globalspartan
// Dec 19, 2006 at 9:25 am
Three things a nation needs to become a major outsourcing leader like India are many smart, educated, intelligent workers. The nation will need to be inexpensive to live in, that way workers can survive with minimal pay. It will also need many English speaking workers and a large population.
-Mike H.
9
globalspartan
// Dec 19, 2006 at 9:33 am
1) The first criteria a country must have to be a great outsourcing country like India is a good education system. Without education the people of the country whom will fill these outsourcing jobs will not meet the expectations needed to work in the industry and in turn India or any country will not be an outsourcing god. The second criteria a country must have is low labor costs and a low cost of living. If these aspects are met workers will able to buy or rent close to there work and communiting will be easy. Also, with the people not getting paid much (and it being okay becaue of the low cost of living) the companies will be saving more money. The last criteria a country must have to be a excellent outsourcing country is the ability to tax. Good taxing policies enable the companies and government to pull in extra money without getting the citizens too mad.
-Dylan L.
10
globalspartan
// Dec 19, 2006 at 10:01 am
1. Three keys nation must have to be an outstanding leader like India- Education many countires that do not have education as a priority often don’t get far in life and are forced to work in factories, being educated in the field they are in will help them be succesfull- Low labor costs and living i agree with everyone that low paying- allows them to live closer to their jobs insted of traviling a far way to get to work.
-Monica
11
globalspartan
// Dec 19, 2006 at 11:05 am
1. Three keys that are needed to become an outsourcing leader like India you will need a good education, good economy, and a stable and healthy government. When I say healthy government I mean there is no problems with power and inport less than they export. THe next thing that a country would need is good education because with a good education the leaders of tomarrow are become smarter and learn news way to make more money for the country. The last thing they need is a good economy, with a good economy there unemployment rate will go down and in turn make the country richer to become a great outsourcer.
(~Nick Deviso~)
12
globalspartan
// Dec 19, 2006 at 11:40 am
1. Good education-
A great educational system is fundimental to be a good outsourcing location because without education, the people would not be able to do the job prospective employers would need them to do.
2. Low labor cost-
Companies are constantly looking on ways to make money. The less a company has to spend on paying their employees, the better the country looks to them. Compared to the United States, India and Romania have a much lower labor cost and they do not have to pay them as much for doing the same job as they would in the States.
3. Stable government-
A stable government is vital to outsourcing. When there is constant unrest, wars, and constant overthrows of power, a company cannot survive and make a profit in that kind of environment.
~Jihan H.
13
globalspartan
// Dec 19, 2006 at 2:13 pm
Three key criteria’s that are needed to become an outsourcing leader like India are; a good education with well educated teachers. Low labor cost, because in India things are cheaper even though it is the same quality as the things that are made in the U.S for more money. Also a highly skilled work force because the workers are very good at what they do and they are fast and produce high quality products.
Shawna O
14
globalspartan
// Dec 19, 2006 at 4:03 pm
For a country to be an outsourcing leader it must have:
I- A skilled work force. Companies do not want to compromise the quality of their product for low prices. A skilled work force like that in India can produce products of the same or higher quality without raising costs.
II- A strong government. Like Jihan and Nick pointed out, civil unrest throws off the interest of potential companies. They do not want to risk their company’s success because a foreign government is in a tizzy. Furthermore, if the people are unhappy with their government, they are distracted. This equals unfocused workers and lower quality products.
III- Low costing of living. The country must have food, utilities, comfortable housing, and transportation that the workers can afford on a small salary. That way, if foreign companies come in and pay them small salaries, they will be able to get by, maybe even thrive! But really, low cost of living= very important.
~Kara B.
15
globalspartan
// Dec 20, 2006 at 9:40 pm
The three main criteria would be educated and hard working workers. Educated workers cause fast and good production. Also companies educate their workers if they don’t have enough as the company believes they do. Another thing is low labor costs. Low labor costs can cause the company to make money and countries with high populations have many workers but low labor costs are good for the company and nation. Finally a healthy government is needed to reassure no bad business going on, no distraction, like Kara said it would cause unfocused workers and lower quality products.
~Carly S.~
16
globalspartan
// Dec 21, 2006 at 10:52 am
The 3 main criteria for using outsourcing is:
1.)low labor cost: Having workers who work for a low salary is a plus for any company because all the company is trying to do is make money.
2.)educated people: You have to make sure that when your workers are going to work for you, you have to make sure that they know what there doing because if they dont it will cost the company money in the long run.
3.)low cost of living: I agree with Kara on this point because since the workers have such a low pay they need everything like food and clothes to be lower.
Christina Newsome
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