Outsourcing In India - 894 Words

The service industry now makes up almost as much as 60-65% of the global economy with India being a major contributor to this industry (KPMG, 2016). India has dignity to know that its country is one of the fastest-growing service sectors in the world. According to KPMG (2016), services remain the key driver of India’s economic growth and continues to grow strong and steady. The services sector contributes more than 50% to India’s GDP and is growing at about 10% per year. IT outsourcing has been a major source of employment for the people living in India. The service sector in India has exceed agriculture with a greater share of GDP and is now considered a service based economy instead of an agriculture economy. In general, the service†¦show more content†¦Tier1 cities have also seen an impact of the IT-BPO industry as the population in these cities have increased due to the growth of this industry. The IT-BPO industry is also looking at tier 2 and tier 3 cities as potential cities to expand into. These are all impacts of how IT outsourcing has effected India’s economy as well as the people living in this country. There are challenges that come with IT outsourcing in India and the biggest one being there are competitive revivals that exists due to low switching costs. The biggest competitor currently to India is China. China has been investing a lot of money into its country to grow this industry since it has seen the positive impacts on India. One of the ways China is attracting companies to move to China is that its government is offering significant tax incentives (KPMG, 2016). Some of the other countries that are competing with India are Ireland, The Philippines, Poland and Malaysia. There are improvements that India needs to focus on and two of these improvements are making sure they have good infrastructure; and keeping costs low for companies who are looking to move to China where it might be cheaper to have established their business processing. Though there are challenges and competitors for India, the future for India looks strong as well as room for growth. One of the areas th at India is focusing on is domestic growth and making it a priority to increase theShow MoreRelatedFuture Of Pharmacovigilance ( Pv ) Outsourcing India Essay1318 Words   |  6 PagesFuture of Pharmacovigilance (PV) Outsourcing in India Abstract Over the past few decades, many high-profile drug recalls, regulatory authority warnings and negative media impact have caused monetary losses and tarnishing of the image of pharmaceutical companies. Consequently, these companies have invested heavily on PV systems. 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