Jan 31, 2011

Pros and Cons of Globalization on Indian B2B Market

When the Indian government opened the country's markets to foreign investments in the early 1990s, it had a vibrant globalization effect on Indian economy. Various segments like steel, BPO, pharmaceutical, chemicals, textiles and petroleum saw a positive growth with globalization.

As the trade restrictions between nations were removed, the economies of the various countries were benefited by a smooth financial flow and increased corporate investments. Globalization has resulted in great progress in the field of technology especially in communications and transport. The economic policy changes resulted in greater foreign investments in the country, which saw revolutionary changes in BPO sectors and It industry especially. Many foreign companies set up industries in India, which provided lot of employment opportunities and growth prospects as well. The Indian industry became technologically more advanced due to globalization and had an overwhelming presence in the world market.

Globalization has provided an impetus on the industry and trade in India. With an increase in free trade, the wealth and cooperation between various countries have increased, which has ensured better trust and mutual confidence. The free trade zones, reduction of capital controls and standardization of intellectual property laws are some of the advantages of globalization.

However, globalization has its share of negative effects as well. The increased competition in the Indian market between the foreign companies and domestic companies put many Indian companies in jeopardy as the consumers opted for high quality foreign products. This reduced the profit of Indian companies and some of the sectors that bore the brunt of globalization include pharmaceuticals, chemicals and steel industries among others. The technological advancements brought by globalization reduced the dependency of manpower and many people were rendered jobless by globalization.

Thus India has had both positive and negative effects of globalization and the government should make sure that the globalization brings in more prosperity and advancement without causing any harm to its traditional industries and its work force.

B2B market places are great platforms to know the latest trends in globalization and to meet the manufacturers and suppliers of various commodities in the global trading scenario

B2B Business Resources

1 comment:

bradwilliam said...

India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.

Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.

A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Indian market. India has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Indian economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in India.