Today India is the second most populous country in the world, with about 1.04 billion people. Two-thirds of India’s population work in the agricultural sector and account for around 25% of GDP. The Indian indicator of human development is one of the lowest in the world, and a large fraction of the population still lives below the poverty line. Nevertheless, due to India’s liberalising reform programme and the rising economic de-velopment, the number of poor people will decline to 220.1 million by 2007 according to the Planning Commission.
The World Bank estimates that India will become the fourth largest economy in the world by 2020. While increasing pressures on domestic industry will have to cope with competition from imports, liberalisation of trade will open up new opportunities for ex-port of goods.
India’s service sector has already become the dominant contributor to GDP, accounting for 46 per cent of the total. NASSCOM, the Indian industry’s lobby, has stated that the country’s exports from software, other IT services and business-process-outsourcing in-dustries grew by more than 25% to $12 billion last year, of which infrastructure services accounted for just over $300m.
The global market for textiles, clothing and agricultural products will expand dramati-cally, but India’s ability to export will depend on its capacity to keep pace with rising international standards of price, quality productivity and service.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 1.1 General situation of India
- 1.2 Offshoring - The difference to Outsourcing
- 2 Offshoring - The engine of the rising Indian service industry?
- 2.1 Need for offshoring
- 2.2 Advantages of India
- 3 The Indian service industry - A fallen angel or a rising star forever?
- 3.1 Downsides of offshoring
- 4 Closing Words
- 5 References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper examines the rise of the Indian software industry, specifically focusing on the phenomenon of offshoring and its impact on the Indian economy. The paper explores the factors driving the offshoring trend, including the need for cost reduction, access to skilled labor, and favorable government policies. Additionally, it analyzes the potential downsides and risks associated with offshoring, providing a nuanced perspective on the sustainability of this growth trajectory.
- The economic and social landscape of India
- The role of offshoring in driving the Indian service industry
- Advantages and disadvantages of offshoring to India
- The potential impact of offshoring on Western companies and economies
- The sustainability of the Indian software industry's growth
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: Introduction: This chapter provides an overview of India's economic and social context, highlighting its large population, reliance on agriculture, and human development challenges. It also introduces the concept of offshoring, differentiating it from outsourcing and explaining its importance in the globalized economy.
- Chapter 2: Offshoring - The engine of the rising Indian service industry?: This chapter delves into the reasons behind the growing offshoring trend, emphasizing the need for companies to stay competitive in a saturated market. It explores the specific advantages of India as an offshoring destination, such as low labor costs, a skilled workforce, and favorable infrastructure. The chapter also discusses the economic theories supporting this trend, including Ricardo's theory of comparative advantage and Heckscher-Ohlin's theory of factor endowments.
- Chapter 3: The Indian service industry - A fallen angel or a rising star forever?: This chapter examines the potential downsides and risks associated with offshoring to India. It discusses the external political risks, internal political problems arising from employee layoffs, and the potential disruption of value creation when companies outsource core competencies. The chapter also explores the concerns surrounding outsourcing core competencies, building new dependencies, and the emergence of new competitors in the market.
Schlüsselwörter (Keywords)
The primary focus of this paper is on the Indian software industry and its rapid growth driven by the offshoring trend. This involves exploring key concepts like outsourcing, offshoring, labor costs, skilled workforce, infrastructure, and economic theories like comparative advantage and factor endowments. The paper also investigates the potential downsides of offshoring, considering factors like political risks, employee layoffs, and the outsourcing of core competencies.
- Quote paper
- Markus Kutscha (Author), 2004, The Rise of the Indian Software Industry, Munich, GRIN Verlag, https://www.grin.com/document/70641
