India has certain advantages which makes it a favourite outsourcing destination. What are these advantages?
India has certain advantages which make it a favourite outsourcing destination:
1. Low Wage Rates: Services in India can be availed at a cheaper cost compared to developed countries. This cost advantage attracts multinational corporations and even small companies from developed nations to outsource their services to India.
2. Availability of Skilled Manpower: India has a large pool of skilled workforce which enables it to provide various services like accountancy, banking services, music recording, film editing, book transcription, clinical advice, and teaching with reasonable degree of skill and accuracy.
3. Modern Telecommunication Links: With the help of modern telecommunication links including the Internet, text, voice and visual data in respect of these services is digitised and transmitted in real time over continents and national boundaries, making outsourcing feasible and efficient.
Explanation
The textbook clearly outlines three main advantages that make India a preferred outsourcing destination. First, the low wage rates provide a cost advantage to companies from developed countries. Second, India has abundant skilled manpower that can deliver services with reasonable skill and accuracy. Third, the modern telecommunication infrastructure, particularly the Internet, enables seamless transmission of digitized data across continents in real time. These factors combined have established India as a global outsourcing hub in the post-reform period.