XIMB Organizes Talk on "Economics of Outsourcing" by VP-CTS

XIMB Organizes Talk on "Economics of Outsourcing" by VP-Cognizant Technology Solutions

When you outsource, your costs decrease resulting in lower prices and increased profits. This in turn has a positively cascading effect on increase in exports, and thus, wealth is created for newer investments, products and services, finally resulting in the creation of newer jobs. Thus, Mr. Mukherjee proved quite articulately how jobs will be created.

He also mentioned that offshore service efficiencies will significantly impact overall job growth even in the U.S. and most other western nations. Using graphs and figures, he pointed out some of the Fortune 500 Companies such as GE and Microsoft that have benefited form outsourcing.

In the penultimate section of his discourse, Mr. Mukherjee mentioned how India was going to benefit from all this, as the other countries where quality labour initially was cheap have started to raise the wages. Slowly yet surely, these nations such as Israel and Ireland are losing out to countries such as India as the prime outsourcing destination because of the availability of cheap labour for comparable quality of output.

Indeed what an enlightening session this was. In the end, the return on time invested in the session was far greater than initially expected. Whatever doubts remained were promptly cleared by the question and answer session that followed Mr. Mukherjee's lecture. Finally, when the event came to an end, the students left the auditorium with smiles on their faces and a lot of knowledge in their bellies.

Concluded.

Contributed by -
Sumit Misra,
Member, IlluminatiX,
Media & PR Cell of XIMB,
Xavier Institute of Management, Bhubaneswar.

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