How Can The US Stay Ahead Of Competition By Outsourcing To India?
If the US is still the supreme economic power of the world, it is the Indian outsourcing industry that enabled it to maintain this edge over the competition. Outsourcing gave America the power to sustain its economy by:
Providing collaboration in information technology (IT) Supplementing the jobs loss with greater opportunities Ensuring profitability of businesses Compensating skill shortages
Providing collaboration in information technology (IT) The Indian IT industry added wings to the US economy The Silicon Valley is dominated by Indian IT professionals By outsourcing IT to India, the US maintained its competitive edge BFSI outsourcing increased quality and productivity by 15-20% Customer satisfaction increased by 85%
Supplementing the jobs loss with greater opportunities For every dollar spent on outsourcing to India, the US gets $1.2 This is the finding of McKinsey Global Institute During 1999-2003, 70,000 computer programmers lost jobs In the same time period, 115,000 software engineers found better paying jobs
Ensuring profitability of businesses Businesses in the US gained heavily by outsourcing to India These businesses found better professionals in India at lower price Due to this production cost declined and profitability increased In the last 7 years, IT production boosted the US GDP by $230 billion
Compensating skill shortages ď ą Due to imminent retirements, the US faces severe shortage of skilled workers ď ą By 2020, the skilled workers gap will be a whopping 14 million ď ą The abundant availability of skilled labor in India can fulfill this gap
Thank You Outsourcing to India gives the US the competitive edge
Published on Jan 30, 2013
In the early 1990s, the US faced tough competition from Japan and Germany in terms of per capita income, a strong indicator of a nation's e...