Why outsourcing is popular in India?

I would imagine it is cheaper to pay the staff in India, as I don’t believe they have as strict laws when it comes to something like minimum wage.

English is a major language in India and is spoken by lots of people and wage costs there are very low. It doesn’t always work well because of cultural differences however.

Quality with Talent

Because India offers cheap labor for making peices of shit we pay top dollar for. India is part of the reason that unemployment is so high in the United States.

English language ability and low labor rates – plus the top administrators with the work are treated like royalty when they come to visit.

Why do businesses like Toyota and Honda outsource jobs to the US?

In the case of India in particular, the country offers fewer restrictions and regulations on businesses, interest rates are lower, India has the highest population of English speaking people among developing countries, plus the advancement in communications technology and time zone differences adds an advantage to buinesses,

India’s large population is satisfied to work for less pay compared to some countries, but it is still a much higher salary than they would earn elsewhere. Studies have shown that for every dollar the US sends abroad, it gets back about $1.12. A net gain of $0.12.

The population is highly educated and speak English. The wages are lower.

@marinelife Only a small portion, India has very low literacy rates, and low average years of education. I don’t think the higly educated are doing most of the outsourcing work anyway.

@JLeslie That’s not true.

The typical worker in an Indian center has 14 years of education (on average two years of college) compared to 13.3 years among US in-house establishments
Brookings trade forum 2005: Offshoring white-collar work

@marinelife Oh, you were referring to a typical worker in an Indian center. I was referring to the country as a whole. Miscommunication :). And, I did not know they typically have 14 years of education. Thanks.

White collar jobs and blue collar jobs are sent overseas? I guess both middle class and upper class is screwed. I guess there won’t be any jobs soon:(

I don’t know (I am sure it’s cost related) but I hate it! They might speak English in India, but I can’t understand them. I have hung up on them before and called the company to complain. My office did not renew their contract with Xerox, and went with Oce this year just for that reason, although I think they were outsourcing to Jamaica. Xerox lost a HUGE contract because I work for a very large school district, and I am glad because I agree with @Mikewlf337 We need American jobs here!

India is a favorite Outsourcing destination because it suits what US needs :
1) Work must go on..Time zone satisfies this when US sleeps India wakes and work continues from where counterparts leave
2) Cheap labor, most Indians get one third of what a US employee gets for same work
3) Highly Qualified and domain experts : Most Indians working for US firms are either Engineers or MBAs with good business knowledge, whereas US employees are comparatively less qualified

@ashek1 The US needs jobs for it’s own people. India suits employers desire for cheap labor.

@Mikewlf337 Thats correct, India suits to employers and they go for cost reduction and maximizing profits. yes US need jobs, i guess for well qualified people there are jobs..US lacks talent as well (at least there are lesser number of qualified people thats why they are paid more) a reason it Outsources to India. Corporates don’t think whats morally correct but go for maximization of share holder’s value, hence outsource to reduce cost and get better quality

@ashek1 I don’t have any statistics to back this up, but I doubt we don’t have the talent for the jobs we outsource to India. I think it has more to do with money, paid wages. I guess it depends which outsourcing jobs we are specifically talking about. There are companies like Apple who advertise their 800 service numbers are all answered by Americans and Canadians. I actually like that. I have had too many difficulties communicating with parts of Asia on technical issues, service related issues, it is frustrating. For other things no problem. Depends on the thing. My impression is it has nothing to do with the work ethic or skill of the person I am talking to, it is simply a language difficulty. Even native English speakers can miscommunicate, Australia talking to America, or England talking to Belize.

If the buying power of individuals in India increases with jobs, even if the jobs are outsourced from the US, this gives people in India many benefits we may not realize. But is also is a mutual benefit to Americans. The reason I say this is because, the U.S. exports to India in 2008 amounted to approximately $32.44 billion, a 85 percent increase from the previous year. If people have more money to spend, regardless of where they live, we can all benefit.

http://www.export.gov/faq/eg_main_017486.asp

@bkcunningham I agree with that. Good point. It just reinforces my belief that raising up the poor and middle class contributes to the economy more than the rich getting richer. It is true for us wihtin our country and outside of the country.

Among lots & lots of reason for it following are the main reasons
—Largest Technical/Professional Talent Pool in the World
—India the worlds largest English Speaking Nation
—Infrastructure, technology and communication links
—Not just Low cost but also High Quality:
I feel India to become the first developed nation by using brain power alone?

@vepro whatever but India still isn’t anyway near to DEVELOPED economy…

I don’t care why they get the jobs they are still getting the jobs that use to belong to Americans. My country starves while they eat at our expense. This use to be the land of opportunity now its the land of opportunity for everyone but Americans.

@Mikewlf337 only way outsourced jobs can come back to Americans if they decrease wages and increase your qualifications

@ashek1 so the only way we can get our jobs back is if we become a third world country?

@Mikewlf337 no way..America is the TOP MOST nation..it can never be a 3rd world country. But you see there is an increasing threat from 3rd world countries which too want high living standard, if a corporate finds a person doing the same job at lower wages and say with more confidence and less risk then why wont he give it to that person. Be it US or India its same equation.

@ashek1 That only benefits the employer. What good is a US complany to me if they don’t do anything to benefit me and my people? IF this keeps happening then there will be no jobs or at the east not enough for a stable economy. What about all those people who lose everything because their jobs got outsourced? We have a very high unemployment rate and outsourcing is one of the reasons why. I