Economic liberalisation began in 1991 where the democratically elected government began
Offshore outsourcing is the practice of hiring some external organisation to perform some business functions in a country other than where the products or services are developed or manufactured.
India has succeeded in capitalising on this with large TNCs such as Infosys and Wipro, both being located near Bangalore. It has been referred to as the ‘back office of the world’ It is attractive due to it having the second largest English speaking population in the world, a government that has remove autarkic policies in favour of trade liberalisation, world class technologies with a highly technically competent population (2.5 million technical professional), high quality infrastructure and strong democracy with strong intellectual property rights.
Timezones in India assist with its role as the “back office of the world” as work can be sent at the end of the day from firms in the UK and Europe for processing and, as a result of timezones, will be returned the very next day.
Karnataka is a state in India, which has the capital of Bangalore. It has seen some of the highest levels of offshore outsourcing of all Indian states. Karnataka has:
– Been the first state to set up dedicated engineering colleges and a technology university.
– Grants and tax incentives to support IT firms, SEZs from the SEZ act 2005.
– In 1991 opened its first software technology park, it now has 6.
– Has the highest quality telecoms infrastructures.
– Currently have plans for a Nanopark for research into Nanotech, Green Park for research into environmental technologies and a biotech park.
Bangalore, Karnataka has also achieved in bring a number of offshore outsourcing firms together in one city. For instance Wipro and Infosys are both multi million dollar TNCs that are based in Bangalore and carry out similar offshore outsourcing work.
British Rail Enquiries: In 2009 British Rail Enquiries moved all their call centres from Yorkshire to India to cut costs. Customer satisfaction levels were the same at both centres and the Indian centre was considerably cheaper.
BT: In 2015, as a result of customer complaints BT decided to move 30% of calls back to the UK so only 20% were dealt with in Delhi and Bangalore.
Infosys is an offshore outsourcing firm that has offices in a 30 different countries, 60% of their employees are found in the origin country, India, Bangalore specifically. It was founded in 1980 by business people who had temporarily emigrated to the United States to gain the skills and carry out research into the functions needed in the organisation. Revenues exceeded $4bn in 2008. They run a number of schemes in India aimed at finding talented young people to work for them at at a young age. An example of one of these schemes in the “Catch Them Young Scheme”.