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Globalization and Outsourcing

The meteoritic growth of the Indian economy can be credited to the huge and bombastic success of the globalization and outsourcing in India. Low cost, huge technical talent, and English speaking, efficient workforces are the leveraging factors for globalization and outsourcing in India.

The boom of globalization and outsourcing in India is at its peak but its seeds were sown with the opening up of the Indian market during the early 1990s.Industries like Information Technology, Telecommunication, Finance and Banking got into the race early. Industries like, manufacturing, textiles, infrastructure, real estate etc sensing huge profit quickly metamorphosed to cash upon the boom of globalization and outsourcing in India.

The effect of globalization and outsourcing in India can be witnessed from its ever swelling GDP, currently which is around 8.5%. The success of globalization and outsourcing in India can be attributed to the following basic factors -

Low cost expertise
Operational cost control
Cost savings
Scope for increased productivity
Transparent transaction process and improved accountability
Improved HR and practices
Opportunity to focus on core business
Huge English speaking workforce

The widespread acceptance of globalization and outsourcing of Indian services witnessed huge inflow of outsourced services like customer care and back office processes. These include technical support, collections, transaction processes, and data processing. Domain of services covered areas like Accounting, Finance, Banking, Insurance, Mortgage Lending and Collections, Mutual fund and Advisory services, Healthcare, Telecommunications, Media and Publishing, Real Estate, Electronic Funds Network, Retail, Software Development, Logistics and transport, Education, Email Management, and Fax Processing.

Some note able development which resulted from the successful introduction and implementation of globalization and outsourcing in India are as follows -

Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products.

Insurance industry - has been opened to private investors, both domestic and foreign.

Encouraged by the stupendous growth in 2005-06 the IT and ITES industry is targeting US$ 60 billion milestone in exports by 2010 and employs (2005-2006) around 1,287,000 personnel.

Telecommunications industry - both mobile and fixed service is now open to private sectors (even foreign investor) and as a result, the telecommunications services are growing fast.

The biotechnology industry witnessed another good year in 2006-07 and registering more than 40% of growth.

The US$ 47 billion Indian textile industry is expected to grow to US$ 115 billion by the year 2012 .

The US$6.4 billion Indian retail industry is expected to grow over 20% annually to US$ 23 billion by 2010. The Indian retail market size capacity is projected to be of US$ 200 billion.

The robust pharmaceutical market in India ranks 4th worldwide and is expected to cross business worth Rs 1,00,000 crore in formulations and bulk drug production by 2010.

Some of the leading outsourced companies operating in India are as follows -

GE Capital
Convergys
Wipro Spectramind
Dell
Daksh eServices
ISeva
ICICI OneSource
Efunds International
Hinduja TMT
EXL Services
Ajooba
Motif
NIIT SmartServe
HCL-Tech BPO

The contribution made by this industry towards Indian economy is worthy of mention and it is the highest contributor towards Indian GDP. Further, these BPO companies have been the front-runners in employment generation. Furthermore, they also offer better pay package, work environment, growth prospects, and corporate culture. The globalization of Indian service sector is the result of excellent services offered by the Indian work force, consistently over the years. This boosted the confidence of foreign investors in outsourcing jobs to India. The success of the outsourced companies in India is the result of efficiency and determination of Indian work force. Moreover, the success of the globalization and outsourcing in India helped in removing poverty and alleviating the life of average Indian.

Last Updated on 5/18/2011