Do you think outsourcing is good for India?


Do you think outsourcing is good for India? Why are developed countries opposing it?

IAS Aspirant:

Out sourcing is done by economically well developed nations to execute their work in other nations by making use of the difference in value of the currency.

For example, if a job outsourced from US is done by an Indian in an IT park he is initially paid a wage of Rs.25000 to Rs.30000, which in US at present value costs around US $500, but if the work is provided to a person in US he has to paid minimum between US$10000 to US$20000.

So by out sourcing the same work to developing nations they can pay the same money paid to a person to around 20 person in minimum, so it is economical for them as well as the work gets finished fastly.

Supported by economic reasons the working hours also matters.

The money what ever mentioned is for 5 hours a day for 5 days a week concept in England.

For working extra, they need to avail permission or else they will be penalized.

But in India and developing countries no such restriction in available, then are ready to work even more than 8 hours a day.

So out sourcing is the best option for the developed countries.


Those companies who outsource the work are basically profit motivated.Outsourcing may help India in a short term growth, but the long term prospectus is not healthy as more countries are eyeing to seize India's market as they ready to work for even low wages ! Outsourcing being profit oriented, we can't tell sure that all companies will stick to India ever, they may opt for countries which require even low wages.

So its uncertainty for sure.


Why it is opposed is that companies are profit minded and proceeding further with out sourcing, as a result the unemployment in their own nation is increasing.

So it is opposed.


Outsourcing is good for India because it will increase India's cash in-flow.

Developed countries usually oppose because it increase their revenue out-flow and their dependency to the developing country.


core competencis will upsurge in the country while developed country oppose it as they will increase complexities in the earlier existing system.

few develop country still fear to bring change within.

likes frnd stated above.

cash in flow will increase .