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India has Emerged

India has emerged as the nucleus of outsourcing storm sweeping across the globe right now. The majority of outsourcing contracts are moving to India, despite the fact that countries like China or Russia are offering better rates. The chief reason is the availability of a large pool of IT and engineering talent and a huge skilled workforce, at very competitive costs. The dollar goes a long way in India and companies in the USA are saving billions of dollars by shipping out non-core functions. 
In 2004, outsourcing to India is expected to grow by at least 30 percent, according to research conducted in the USA. There has been a corresponding growth in the opposition to outsourcing, especially since it is not just low-wage manual labour jobs that are being shipped out to India. There is much pressure on governments to ban it altogether. 
However, research shows that for every dollar that moves out of the USA, an additional $1.20 is created. The company can plough this money back into the American workforce, through expansion and by diversifying their enterprise. This will lead to the creation of more jobs in the USA. Not to mention, of course, the gains brought in by efficiency and market competitiveness.
Data 2004 - Author Annie Zaidi


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