U.S., European Save $30 Billion by OutSourcing to India ?

U.S., European Save $30 Billion by OutSourcing to India ?

Bangalore: U.S. and European companies saved a whopping $25 to $30 billion in 2009 alone on account of their outsourcing work to Indian companies. U.S.-based customers are seen to have saved $14-19 billion and European ones $9-12 billion, reports The Times of India.

According to a recently concluded study by Nasscom in association with research firm Evalueserve, the information technology and business process outsourcing (IT & BPO) sector accounts for 6 percent of the country's GDP, a quantum jump from 1.2 percent just a decade ago. The study estimates that by 2020, the sector will account for 10 percent of the country's GDP and 14 percent of the total services sector revenues.

 

Nasscom president Som Mittal said that the industry has contributed significantly to the development of the American and European economies. Amidst allegations that outsourcing has increased unemployment in U.S., the study reveals that the off-shoring has created over 250,000 direct and indirect jobs across the U.S. during 2004-2007. In 2007, $2.75 billion was contributed by Indian firms to the U.S. economy in the form of taxes and administrative expenses incurred by their onsite offices.

The IT-BPO sector have contributed to 10 percent of the country's service sector revenues, its unique "service-led" export oriented model contributed 9 percent of the country's incremental GDP. The per capita GDP contribution of IT-BPO employees is 80 times that of agriculture. The industry grew twice as fast as the total Indian exports over the past decade and contributed 14 percent of the country's total exports.

1: Nature is a self balancing ledger. Everything falls in right place by default. We breath out CO2 flora gives us 

2.Evert thing including the money has its own cyclic movements. Like gradient waterfalls and finds its own level. Economics is true about demand supply, optimum theories .US today depends on Cheaper Indian Companies, may be in due course Chinese will be filling up even this avenue. As it is they are the second largest economy today. Let us improve our quality and bargain better in the decades to come.

2: whta will u do with all the save dmoney if it does benefit common man in US and Europe, thus outsourcing

3: this was a royal waste of a few minutes of life. are there no useful things you can write about?
p.s. dennis - you need to be out of the gene pool.

4: This whopping $30B savings is overshadowed by the hundreds of billions needed for compensation and other measures that were needed due to the consequent job losses in the US and Europe.

5: Yup these counries do not have skilled labour so Indian Govt should take advatageof the situation. Ask them for all technology in return or give them a hard time the same way they do for us. Now we are in control of them ha ha

6:Sh.... Be happy this avenue is not in the ears of great Management Wizards like Lalu Yadav, or Present ICC chief ex BCCI CHIEF, or IPL Man, or seasoned chief minister of South else it is very simple for them How to Make easy money effortlessly in the field of Software and outsourcing business, who can visualize more easy money making avenues also a great scope for the black money and fake currencies floating across nations.RVGIYER replied to: dennis