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Business in emerging markets - Essay Example

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This country has been the favored outsource destinations because of its competitive advantage over other emerging countries offering same services. In the study, India’s competitiveness in the business…
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Business in emerging markets
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Business in emerging markets

Download file to see previous pages... A conclusion is drawn based on the data presented why India has remained in its number one post despite emergence of competitors.
Many large companies now practice outsourcing of jobs for reasons that they save on costs when they hire other companies to do the work for them. Many companies find this a better alternative as the work is done for them at a considerable less cost of money, and they have fewer overhead expenses to worry about.
The need for outsourcing of jobs opened the opportunity for offshore outsource services that is offered by many countries in Southeast Asia and in the Middle East. Among these countries, the study of A.T. Keanney on offshore locations shows India occupying the top position as an offshore outsources services while that of the Central/Eastern Europe services fall.
This study looks at the reasons why India has become number one in outsourcing services considering that there also other countries doing the same thing. Implication of the study will show the strength and weaknesses of competing countries that will be useful for decisions of countries using their services.
To determine competitive advantage of India, Porter’s Five and PEST framework of Analysis are done to know the strong points and limitations of each country in the area of business process outsourcing.
a. Supplier power. Under Porters framework, the role of quality and service play an important function in choosing a probable supplier. In this context, India has established its competitive edge with other countries because it boasts of 250 million English speaking workers possessing technical and scientific skills, 24 hours service and zero downtime.
Foreign company tends to have 30 to 35% offshore cost savings because of low salary scale of workers in India. Starting salaries for IT engineers in India is from $5,000 to $10,000 which is comparatively lower in US standards. This salary however is already considered attractive in India whose annual per ...Download file to see next pagesRead More
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