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Abstract

Since the mid-1990s, companies from Europe and the US had been rushing to outsource their operations to India, while the public and politicians in those regions had been raising a hue and cry over the loss of money and jobs to India. But since 2002, Indian companies had been doing all those activities in the West, that traditionally companies from the West had done in India - acquisitions, takeovers, mergers, joint ventures, new operation setups, business building guidance to existing companies, and above all creating jobs in those regions. But the American public and politicians have failed to realise these new developments were taking place. The uproar over Indian business process outsourcing (BPO) continued to gain momentum with the US Presidential elections in 2004. While the politicians strongly vowed to stall the outsourcing to India, economists and industry experts defended the process as a necessity for the revival of the US economy from recession. The case promotes an understanding of the evolution of Indian BPO?s, the reasons behind India''s emergence as the most preferred BPO destination, the reasons behind Indian BPO''s reverse migration towards the West and their contributions to economic progress in the West. The case also offers scope for discussion on whether the offshoring of jobs to India is justified, and whether ''American brouhaha'' over outsourcing and India is an empty rhetoric.

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Abstract

Since the mid-1990s, companies from Europe and the US had been rushing to outsource their operations to India, while the public and politicians in those regions had been raising a hue and cry over the loss of money and jobs to India. But since 2002, Indian companies had been doing all those activities in the West, that traditionally companies from the West had done in India - acquisitions, takeovers, mergers, joint ventures, new operation setups, business building guidance to existing companies, and above all creating jobs in those regions. But the American public and politicians have failed to realise these new developments were taking place. The uproar over Indian business process outsourcing (BPO) continued to gain momentum with the US Presidential elections in 2004. While the politicians strongly vowed to stall the outsourcing to India, economists and industry experts defended the process as a necessity for the revival of the US economy from recession. The case promotes an understanding of the evolution of Indian BPO?s, the reasons behind India''s emergence as the most preferred BPO destination, the reasons behind Indian BPO''s reverse migration towards the West and their contributions to economic progress in the West. The case also offers scope for discussion on whether the offshoring of jobs to India is justified, and whether ''American brouhaha'' over outsourcing and India is an empty rhetoric.

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