Flattener 5Flattener 5
OutsourcingOutsourcing
1081409810814098
Can SalmanCan Salman
 Outsourcing is an arrangement inOutsourcing is an arrangement in
which one company provideswhich one company provides
se...
 İndia has a few resources, but they haveİndia has a few resources, but they have
the power of the humanity. For examplet...
 İndian students had to go to America forİndian students had to go to America for
good carrier, good jobs and opportuniti...
 .Since the onset of globalization in India during.Since the onset of globalization in India during
the early 1990s, succ...
 Y2K means year 2000 problem. The world'sY2K means year 2000 problem. The world's
companies are using Indian Infotech to ...
 The rise of India can be attributed to factorsThe rise of India can be attributed to factors
“beyond liberalization and ...
 "Once we're in the mainframe business and once we're in e-"Once we're in the mainframe business and once we're in e-
com...
 When the dot-com bubble burst in 2000,When the dot-com bubble burst in 2000,
many software companies needed to cutmany s...
 Friedman thinks that İndia deserves all theFriedman thinks that İndia deserves all the
succes and business because he th...
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Flattener 5 outsourcing.pdf

  1. 1. Flattener 5Flattener 5 OutsourcingOutsourcing 1081409810814098 Can SalmanCan Salman
  2. 2.  Outsourcing is an arrangement inOutsourcing is an arrangement in which one company provideswhich one company provides services for another company thatservices for another company that could also be or usually have beencould also be or usually have been provided in-house.provided in-house.
  3. 3.  İndia has a few resources, but they haveİndia has a few resources, but they have the power of the humanity. For examplethe power of the humanity. For example Egypt produce a thing for 40$, İndian’sEgypt produce a thing for 40$, İndian’s produce it for 20$. We understand that byproduce it for 20$. We understand that by American’s produces their product byAmerican’s produces their product by İndian’s.İndian’s.
  4. 4.  İndian students had to go to America forİndian students had to go to America for good carrier, good jobs and opportunities.good carrier, good jobs and opportunities. But in 1991, Manmohan Singh, İndian’sBut in 1991, Manmohan Singh, İndian’s finance minister; began the openingfinance minister; began the opening İndian economy for foreign investmentİndian economy for foreign investment and introducing competition into theand introducing competition into the İndian telecom industry to bring downİndian telecom industry to bring down prices. And then clever İndian studentsprices. And then clever İndian students could find a job in İndia and they don’tcould find a job in İndia and they don’t need to go US for good job.need to go US for good job.
  5. 5.  .Since the onset of globalization in India during.Since the onset of globalization in India during the early 1990s, successive Indian governmentsthe early 1990s, successive Indian governments have pursued programs of economic reformhave pursued programs of economic reform committed to liberalization and privatizationcommitted to liberalization and privatization aiming for Outsourcing to India.aiming for Outsourcing to India.  . The New Telecom Policy of 1999 brought in. The New Telecom Policy of 1999 brought in further changes with the introduction of IPfurther changes with the introduction of IP telephony and ended the state monopoly ontelephony and ended the state monopoly on international calling facilities. This broughtinternational calling facilities. This brought about a drastic reduction and this heralded theabout a drastic reduction and this heralded the golden era for the ITES-BPO industry andgolden era for the ITES-BPO industry and ushered in a slew of inbound and outbound callushered in a slew of inbound and outbound call centers and data processing centers enhancingcenters and data processing centers enhancing India and Outsourcing Services.India and Outsourcing Services.
  6. 6.  Y2K means year 2000 problem. The world'sY2K means year 2000 problem. The world's companies are using Indian Infotech to solve thecompanies are using Indian Infotech to solve the millennium bug, or Y2K problem with greatmillennium bug, or Y2K problem with great success are using outsourcing. Global companiessuccess are using outsourcing. Global companies extensively used Indian companies to solve theirextensively used Indian companies to solve their Y2K problems. Since India was the only countryY2K problems. Since India was the only country in the world which had the abundant workforcein the world which had the abundant workforce required to write the many lines of code,required to write the many lines of code, considerable business was sent to them. Indianconsiderable business was sent to them. Indian companies solved their clients' Y2K problemscompanies solved their clients' Y2K problems both by sending teams of consultants to work atboth by sending teams of consultants to work at the client's site and by executing projects inthe client's site and by executing projects in India. They have designed a step-by-stepIndia. They have designed a step-by-step methodology for finding a solution, withmethodology for finding a solution, with particular attention being paid to the testing ofparticular attention being paid to the testing of the solution once it has been implemented, andthe solution once it has been implemented, and regression-testing of the application to ensureregression-testing of the application to ensure that no secondary damage has occurred.that no secondary damage has occurred.
  7. 7.  The rise of India can be attributed to factorsThe rise of India can be attributed to factors “beyond liberalization and Y2K,” said Celeste.“beyond liberalization and Y2K,” said Celeste. “The Indian diaspora – the dispersion of Indians“The Indian diaspora – the dispersion of Indians into the US – has been the single most importantinto the US – has been the single most important driver in expanding the US-India relationship.”driver in expanding the US-India relationship.” He pointed to the “extraordinary way in whichHe pointed to the “extraordinary way in which the migration of talent from India to the US hasthe migration of talent from India to the US has grown. Most return to India but those who staygrown. Most return to India but those who stay have become major contributors in virtually everyhave become major contributors in virtually every field: engineering, medicine, academic faculties,field: engineering, medicine, academic faculties, business and the investment community plusbusiness and the investment community plus others.others.
  8. 8.  "Once we're in the mainframe business and once we're in e-"Once we're in the mainframe business and once we're in e- commerce-now we're married,"said Paul. But again, India was luckycommerce-now we're married,"said Paul. But again, India was lucky that it could exploit all that undersea fiber-optic cable. "I had an officethat it could exploit all that undersea fiber-optic cable. "I had an office very close to the Leela Palace hotel in Bangalore," Paul added. "I wasvery close to the Leela Palace hotel in Bangalore," Paul added. "I was working with a factory located in the information technology park inworking with a factory located in the information technology park in Whitefield, a suburb of Bangalore, and I could not get a local telephoneWhitefield, a suburb of Bangalore, and I could not get a local telephone line between our office and the factory. Unless you paid a bribe, youline between our office and the factory. Unless you paid a bribe, you could not get a line, and we wouldn't pay. So my phone call tocould not get a line, and we wouldn't pay. So my phone call to Whitefield would go from my office in Bangalore to Kentucky, whereWhitefield would go from my office in Bangalore to Kentucky, where there was a GE mainframe computer we were working with, and thenthere was a GE mainframe computer we were working with, and then from Kentucky to Whitefield. We used our own fiber-optic lease linefrom Kentucky to Whitefield. We used our own fiber-optic lease line that ran across the ocean-but the one across town required athat ran across the ocean-but the one across town required a bribe."India didn't benefit only from the dot-com boom; it benefitedbribe."India didn't benefit only from the dot-com boom; it benefited even more from the dot-com bust! That is the real irony. The boom laideven more from the dot-com bust! That is the real irony. The boom laid the cable that connected India to the world, and the bust made the costthe cable that connected India to the world, and the bust made the cost of using it virtually free and also vastly increased the number ofof using it virtually free and also vastly increased the number of American companies that would want to use that fiber-opticAmerican companies that would want to use that fiber-optic
  9. 9.  When the dot-com bubble burst in 2000,When the dot-com bubble burst in 2000, many software companies needed to cutmany software companies needed to cut costs and an easy way to do that was tocosts and an easy way to do that was to hire back those Indian programmers theyhire back those Indian programmers they had used in 1999. Only now, thanks to thehad used in 1999. Only now, thanks to the fiber-optic cable in India, those Indianfiber-optic cable in India, those Indian programmers never have to travel to theprogrammers never have to travel to the U.S. – they can do all their work fromU.S. – they can do all their work from home.home.
  10. 10.  Friedman thinks that İndia deserves all theFriedman thinks that İndia deserves all the succes and business because he thinkssucces and business because he thinks İndian’s are allways work hard. İthink he isİndian’s are allways work hard. İthink he is true. İndian allways want to resolve theirtrue. İndian allways want to resolve their problems and the allways go on theproblems and the allways go on the problems and they works. They have tooproblems and they works. They have too much clever scientists. I think Friedman ismuch clever scientists. I think Friedman is justify this thesis.justify this thesis.

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