The outsourcing phenomenon has picked up momentum only in the past decade with the advent of the internet. Ever since undersea fibre -optic cables have been laid out, it has helped in boosting internet connectivity across continents. Cheap access to the worldwide web has helped in the growth and evolution of a knowledge economy which has resulted in a redistribution of wealth across the globe.
People who have been using computers for many years would re-collect that sending a file even 1 Mb in size used to take a whole night, now the same can be done in a jiffy. The wave of outsourcing became a flood when sending large amounts of data through the internet to another corner of the world became a breeze.
Another factor, which contributed to the growth of the outsourcing phenomenon, was the realization that India had a large talent pool of English speaking professionals who could deliver high quality work at low costs. Companies in the western world realized that sending work offshore proved to be a profitable proposition as the response was even faster than vendors based in the home country. Not just India, other countries in the eastern hemisphere also benefited from this realization.
Offshore outsourcing phenomenon is not just a flash in the pan but is here to stay for the long term. Several factors have contributed to the growth of this phenomenon. Foremost among them being the high quality of Maths and computer science graduates being churned out by Indian universities. Unlike the west, where the education system focuses on creativity and innovation; India's education system lays a heavy emphasis on absorption of mathematical concepts and rote learning . The net result being that India's logic -oriented graduates are adept at problem solving and number crunching while the west still retains its edge in marketing primarily due to an academic ecosystem which nourishes creativity and innovation.
Globalization has also had a major role to play in the offshore outsourcing phenomenon. Rising cost pressures forced companies to rethink their cost structures and business models which resulted in a globally distributed supply chain and work force. Work all over the world now goes to that location where it can be done best and at the lowest cost. On the basis of this cardinal macroeconomic principle, one can say that India will continue to retain its leadership position in the offshore outsourcing space.
People who have been using computers for many years would re-collect that sending a file even 1 Mb in size used to take a whole night, now the same can be done in a jiffy. The wave of outsourcing became a flood when sending large amounts of data through the internet to another corner of the world became a breeze.
Another factor, which contributed to the growth of the outsourcing phenomenon, was the realization that India had a large talent pool of English speaking professionals who could deliver high quality work at low costs. Companies in the western world realized that sending work offshore proved to be a profitable proposition as the response was even faster than vendors based in the home country. Not just India, other countries in the eastern hemisphere also benefited from this realization.
Offshore outsourcing phenomenon is not just a flash in the pan but is here to stay for the long term. Several factors have contributed to the growth of this phenomenon. Foremost among them being the high quality of Maths and computer science graduates being churned out by Indian universities. Unlike the west, where the education system focuses on creativity and innovation; India's education system lays a heavy emphasis on absorption of mathematical concepts and rote learning . The net result being that India's logic -oriented graduates are adept at problem solving and number crunching while the west still retains its edge in marketing primarily due to an academic ecosystem which nourishes creativity and innovation.
Globalization has also had a major role to play in the offshore outsourcing phenomenon. Rising cost pressures forced companies to rethink their cost structures and business models which resulted in a globally distributed supply chain and work force. Work all over the world now goes to that location where it can be done best and at the lowest cost. On the basis of this cardinal macroeconomic principle, one can say that India will continue to retain its leadership position in the offshore outsourcing space.
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