Free Business Dissertations - One Major Problem With Globalisation Is That It Works Both Ways And Many
One major problem with globalisation is that it works both ways and many foreign IT specialists are being lured from the UK to work in India where the cost of living is cheaper are salaries offer a better quality of life.
There is also a potential security risk with large amounts of data being stored abroad. There is a high level of corruption in India and crime is global. Criminals may find it easier to obtain credit card information from outsourced centres.
Although outsourcing call centres is more cost effective at present, it is expected as more companies outsource and demand increased the cost savings will diminish at salaries and office space costs rise. Also set up costs like training can be high which means that in the short-term the India call centre may not generate expected savings.
Another disadvantage of outsourcing or moving IT operations to India is the country is not stable. There are been recent problems between Hindus and Muslims and an ongoing dispute with Pakistan. In addition, there have been a number of recent natural disasters, where the Indian Infrastructure has struggled to cope. Companies could find it impossible to put adequate disaster recovery plans in place.
Economically from a company perspective outsourcing and offshoring is at first glance a winner, the majority of firms are making the decision to outsource based on cost. However, one in three offshoring projects fail and companies must take a more long-term view to establish whether offshoring will be cost effective in the long term.
In addition, companies are not considering the moral or social issues. Outsourcing will increase unemployment in the United Kingdom especially as UK call centres were is remote locations where costs were cheaper and unemployment higher. It is difficult for redundant employees in these locations to find employment.
In the long term, skills will be lost in the UK market and companies could find that they are held to ransom by countries like India when costs there enviably rise.
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India’s View of Globalisation
Globalisation allows India to market it largest resource, labour. It allows the Indian economy to grow fast and ensures India’s future as a major world economy.
India has high unemployment, outsourcing creates jobs, and wealth because in relative terms, the salaries are good. A call centre worker in India can expect to earn five times the national average and software workers more the ten times. It allows Indians to improve their lifestyle, which under normal circumstances would not have been possible.
Globalisation has meant that certain Indian cities like Bangalore are undergoing a major rebuilding program. Modern office complexes are being developed and infrastructure is being improved.
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