Sleeping Indian Giants Rise to the Occasion
In this article we consider the subject of outsourcing and the changing dynamics of world power. India, once ravaged by poverty and a lack of direction, is now waking up and beginning to realize its potential. While India is still a Third World country, the world, with good reasons, is looking east.
Despite poverty, India has two critical factors that could one day make it a world power. The first is strong educational institutions and cultural affinity for education. More than any other country in the world, India has experienced brain drain for decades and for the past decade has been the world’s number one outsourcing destination. This is a tribute to India’s educational institutions. Secondly, India has a huge population which when combined with its educational institutions make the country a potent force.
Job shipping enables the US to not only tap into India’s vast pool of talented individuals, but it also places US companies on a level playing field with Indian companies and other Western firms that do job shipping. The statistics on India are alarming, (and hence it is hardly surprising so many firms are sending jobs and work to India). Were US companies to stop job shipping, they would not have at their disposal but instead would have to compete against this:
- India produces 3.1 million graduates a year. A number that will continue to rise rapidly as the economy continues to grow.
- A country with a demographic structure where 54% of its population is under the age of 25. This amounts to approximately 550 million young people.
- As many as 75,000 Indian students go to US universities each year. The number of Indian students with degrees from North American and European universities is even higher than this figure. Hence, the number of Indians in India with degrees from North American and European universities alone is considerable.
- India adds 350,000 engineering graduates to its ranks annually.
The saying, “You are either with us or against us” comes to mind. The US must either harbor India’s low costing talent to its advantage or the US will come under direct competition with India and other foreign companies which utilize outsourcing. We must accept that in one respect India has an advantage over the US. While both the US and India have a vast pool of talent, the latter’s comes at a much lower cost. Only once we acknowledge that India does have an advantage over the US in terms of cost, can we then deduce the best way to counter this competition. The best counter measures against this threat, is of course, through outsourcing.
Fifty percent of Fortune 500 companies are shipping software jobs alone to India. That the most successful companies in the world are sending work to India, is ample evidence that India possesses world renowned technical talent. Don’t compete with the giant, work with the giant…embrace job shipping for the advantages it provides to the US firms and thus the US economy.
- Why Outsourcing to India Will Turn Out to be an Outstanding Business Decision
- India as the Ideal Outsourcing Terminus for High-end Engineering Services
- The Benefits of Business Process Re-engineering As Practiced by VirtualEmployee.com in Outsourcing
- India accounts for one-third of the global R&D and services market
- VE Overcomes Pitfalls of Outsourcing