Why are e-business and outsourcing referred to as the emerging modes of business? Discuss the factors responsible for the growing importance of these trends.
The manner of conducting business is referred to as the 'mode of business'. The prefix 'emerging' underlines the fact that fundamental changes are happening here and now, and these trends are likely to continue. Together, e-business and outsourcing are reshaping the way business is and will be conducted. Since both these trends are continuing to evolve, they are referred to as the emerging modes of business.
Business firms are resorting to a departure from the erstwhile 'do it all by yourself' mindset. They are increasingly contracting out manufacturing, R&D, as well as business processes. This shift towards outsourcing and digitisation is a response to specific triggers or forces.
The factors responsible for the growing importance of these trends can be categorized into internal and external forces. Internally, it is the business firm’s own quest for improvement and efficiency that has propelled it into adopting these new modes.
Externally, the primary forces driving this change are the ever mounting competitive pressures and ever demanding customers. These external factors compel businesses to adapt and reshape their operations.
These trends have significant economic impacts; for instance, India is riding high on the global outsourcing business. It has gained considerably in terms of employment generation, capability building, and contribution to exports and GDP.
Explanation
The answer is derived from the 'Summary' and 'Introduction' sections of the provided context. It defines 'emerging modes' using the text's definition of the prefix 'emerging'. It identifies the shift from the 'do it all by yourself' mindset mentioned in the first paragraph. Finally, it lists the specific internal factors (improvement and efficiency) and external factors (competitive pressures, demanding customers) explicitly stated in the 'Summary' section to explain the growing importance of these trends.