CASE STUDY - Outsourcing to India Flashcards
1
Q
How is outsourcing different to offshoring?
A
Outsourcing is where goods or services are produced or provided by a third party organisation whereas offshoring is the production of goods and services by the same origin company in a different country.
2
Q
Why is India so favourable as an outsourcing location?
A
- Ideal government policies
- Fast developing infrastructure
- Immensely skilled and talented workforce
3
Q
Why are India’s flexible pricing options ideal for companies?
A
- The hourly cost of a developer can be as low as $15 per year
- Higher profit margins
4
Q
Why are India’s infrastructure and technological capabilities ideal for companies?
A
- Uninterrupted communication channels (24/7)
- State of the art telecom, ISP and cellular networks in all major cities and towns
5
Q
Why is the large technical and professional talent pool in India ideal for companies?
A
- 10 million graduates added to the workforce each year (high quality)
- Largest English speaking nation in the world
5
Q
What is the growth rate of India’s IT outsourcing industry?
A
25-30% growth rate per year.
5
Q
What country dominates the Indian IT Outsourcing industry?
A
US companies account for 62% of all revenue generated from outsourcing.
