tirsdag den 6. december 2011

India's transformation and globalisation

General about India

Globalization 

The internet has made a bridge between all continents – and that led to the explosion of India’s IT industry.
Most of the industry consists of call centers, net-related products and software.
There is also a second important industry in India – Bollywood.
India’s annual export of IT component was around $50 million I 2008, and is still growing. 
India I also a country, which many companies prefers to outsource to.

Society 

Before the wireless phones and the development of the internet, India was in an economic black hole. 
There were almost too many people, and not enough jobs.
Many young Indians started on an education – and now they have almost unlimited resources of experts.

Culture 
The Indian culture can be compared with the chines’ culture – they both have the caste system.
Indians are very dutiful, and open-minded. They are just satisfied if they can make a small amount of money

Transformation
1947 India’s Independence 
Very poor country in 1947. 25% live under the poverty line today. 1.25 dollars.
Life expectancy was 27.4 years in 1947. 64.7 today.
1947 approximately 152 died per 1000 born babies.
High amounts of famines occurred
Their literacy level was at 15%, which is low. 74% today
The first president after independence was Jawaharlal Nehru, who ruled India for 17 years.
Up until the early 90’s, the policy was social democratic. Little private sector. Highly skilled, still poor country and many rural living people.
Struggles in the 90’s made India more liberal. More competitive laws

India's Population in 2001 was 1.02 billion, which is 17.31% of the world’s population. Every 6th person lives in India. Fertility rates is 2.72
Population of India in 1947 350 million
Poverty mainly among the 64% that works in agriculture. 
Information technology has been the cornerstone for the ruling party, as it leads to more wealth in the industry and service sector. 
Even though India have bad infrastructure, the rural Indians are coming into the villages selling goods and they monitor prices.

Outsourcing

India’s industry
India´s industry increased explosively in the early 80´s, when the call-centers where established.
Call centers where customers can get advice and assistance to help, in some products could be phones, computers and so on.
The phoning assistance in India is cheaper, and also sometimes better, because the most workers in India have a college education, and the workers in USA only have a high school education. If the customer needs technical assistance, it would often be an advantage to have a higher education. The English speaking from the Indians, are quite the same and easy to understand.


Technical outsourcing
The technical outsourcing in India is a very growing “industry” because; there are a lot of people who knows a lot about computer programs and so.
I also found a Danish citizen on the internet, living in India who has specialized in spreading the outsourcing possibilities to Danish business people, and he says:
-          There is a 24/7 service, all the year.
-          The Indians have longer working days, and because of the time difference, they almost works when the Danish are sleeping, and also the Danish are working when the Indians are sleeping.
-          Sharing of documents and so is easy and quick because of today’s Internet.

Car industry in India
Also the car industry is growing in India.
For example the Hyundai automobiles is made in India and exported all over the world where it sells good, because of the low price, and good quality compared to other cars. The spare parts to the cars also come from India, therefore the spare parts are cheaper, than if they would come from USA, which the cars from General Motor, could be for example Opel which is build in Germany, but the spare parts has been produced in USA, where the price on spare parts is more expensive, because of the paying to the workers.
Hyundai is a big concern who also manufactures oil tankers, container ships, excavators, and other heavy machinery.

Future
So in the Future India and also other Asian countries, would give us in the Western countries a lot of competition, because of the lower price.
Personally I think the “network- outsourcing” is ok because I doesn’t cost much CO2 to the globe, but when the cars are made in India they have to be sailed to Denmark, and that costs a lot of CO2.
Low paying and almost none working conditions? Bad for us.



Market strategies


What's so special about India? 
The Indian call-centers have made a profound impact on the global market... so where lies the interest for the investors? It is very much a question of organization, collaboration and tactics. Modern society has reached a point in which Information Technology (IT) has become accessible from almost anywhere at any given time. The result is that we are no longer bound by certain restrictions; this includes long distances, cultures and languages. We see this in the manner in which the communication is designed to appeal to the market segments that the firm is targeting.


If you were to call customer support (in Britain), you would most likely be redirected to an Indian call-center. The thing is you probably wouldn't notice... well, it depends on the person on the other end. In India recruits normally receive a 20-hour crash in British culture. This includes: 

  • Watching TV soap operas and football games
  • Learning about celebrities
  • Yorkshire pudding *yum-yum :P
They are even taught about Britain's miserable climate; in each and every cubicle monitors keeps track of Greenwich Mean Time and the current temperature in Britain. The staff get a two-hour seminar on the royal family... wait aren't they just goofing around these Indians? No, in fact there's a very good reason. People wants to be in their comfort zone... not in a foreign zone. Moreover, the customers are probably dealing with some kind of issue that they cannot solve by themselves; the communication has to be flawless in order to avoid misinterpretations. 


Get'cha Head in the Game
Now, the articles mainly address "Indian call-centers" and while it is true that these are indeed important their role is still endangered by modern technology. In order to remain in the top position (TOP-NOTCH!) India will need to incorporate new innovations... such as cloud technology (<- My opinion). Am I right? You Betcha!!!


Opinions
For several years English calling centers, have been moved away from England to India. This has been going on almost without anyone in England noticing. As people start to find out that there is being given away to Indians, they tend to have a rather aggressive approach to the subject. This is mainly because many people nowadays are unemployed. Many people don’t get way their jobs have to go to someone in India instead of someone in Britain. But since the Indian employers are cheaper, more effective and better than their British colleges, the chances for jobs coming back from India are likely zero. 

Although the Indians payment is much lower than westerns with the same job and education. The job is still seen as a high status job. This is completely opposite compared to how the west sees these jobs. In the western world, jobs in the service sector are not always seen as ones top priority job. Although the west sees these jobs as “low class”, Indians like these jobs and they are a lot more serious about them than the British.




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