Question

"Indian economy has certain advantages, which have made it a favourite outsourcing destination." Do you agree with the given statement? Give valid reasons in support of your answer.

Hint:

India's outsourcing advantage is driven by key factors such as a large skilled workforce, cost-effective services, strong IT infrastructure, and government support. Additionally, India's time zone difference enables 24/7 business operations, making it a preferred global outsourcing hub.

Answer 1

Indian Economy as a Favourite Outsourcing Destination: India's economy has several advantages that have made it a popular outsourcing destination: - Skilled Labor Force: India has a large pool of skilled workers, particularly in IT, customer service, and back-office operations. The country's proficiency in English, coupled with a growing educated workforce, makes it an attractive destination for outsourcing. - Cost Advantage: Labor in India is significantly cheaper compared to developed countries, making outsourcing cost-effective for companies looking to reduce operational expenses. This cost efficiency drives businesses to outsource manufacturing, IT services, and customer support to India. - Government Policies: Over the years, the Indian government has implemented policies to support the outsourcing industry, including tax incentives, setting up Special Economic Zones (SEZs), and easing foreign investment norms. - Technological Infrastructure: India's growing technological infrastructure, including access to the internet, advanced communication systems, and tech hubs in cities like Bengaluru, has contributed to its success as an outsourcing hub. Thus, India has the right mix of skills, cost advantages, and infrastructure to make it a preferred outsourcing destination.