OUTSOURCING IN INDIA Indias Software Industry Worth more

OUTSOURCING IN INDIA

India’s Software Industry • Worth more than $1 billion USD each year. • One of the most dynamic sectors of India’s economy. • Its growth has been based on low costs but high quality products and services. • MEDC’s outsource their software to India as it is a low-cost location. • India attracts companies on account of quality, speed, innovation, and skills.

The Software Industry… • • Demands high skills. Does not damage the environment. It is a growth industry. There is a great deal of investment money available. • India has a high level of low cost, technically qualified, software professionals, high quality levels, and timezone advantage with USA and Europe.

Bangalore (Bengaluru) • The “silicon plateau” of India. • Home to a cluster of high-tech firms (IBM, HP, and Motorola). • There is a skilled workforce here. • The city contains research institutions and universities. • Low labour costs from employing first-class graduates. • The city has low rainfall and pleasant temperatures.

Activities • Using Geography Course Companion P 350 -352, answer the following… 1. What is outsourcing? 2. Using Figure 14. 11 (P 351), what were the largest exporters and importers of ICT-enabled services in both 1998 and 2004? 3. Which country increased between 1998 and 2004? 4. Which country decreased between 1998 and 2004? 5. What could be the possible reasons behind this? 6. Why is India a good place for outsourcing?