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Outsourcing - India Challenge

In the blink of an eye


India’s outsourcing jobs have grown over two generations. The growth of India’s outsourcing jobs for Information Technologies and business process outsourcing is central. This reflects a global trend to use a ‘low-cost labor’ market to perform tasks that can be well defined and broken down as an industrial process.


From a small start with government recommendations identifying commercial possibilities, to Tata Consultancy winning a first contract with Detroit-based Burroughs Corporation, in 1974. Growth was slow with forward and backward steps (such as IBM controversy EkaLore has written about), to the growth in Y2K work. The growth continues today as India’s domestic market is now a significant fuel and beneficiary of the creation of

technology-based industry in a historically short adoption period.


India has now realized a gigantic economic boom in transferred monies from the industry and education of its workers. The continuing need to expand and grow the boom is a target of other governments and trends in technological innovations that will reduce existing levels of labor demand. The challenge for India is to construct a sustained economic model delivering to national expectations.


The next post covers some of the problems of forecasting considering new technologies and global demand changes. You can read this and other blog posts at


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