Case Study-Intro to Intl Business

1. A.) India has been able to build a thriving software industry because India’s Universities annually graduate thousands if well-trained engineers. They are also able to do this because of the Country’s government relaxed its control over the economy and in doing this it reduced trade barriers, opened doors to new foreign direct investments, and modernized the country’s financial sector. As well as to add another 265,000 jobs to the market.
B) India’s advantages in this market are that the success in India’s software development triggered a growth in its allied industry of business process outsourcing (BPO) and that the revenues of their information technology and BPO industries reached $48 billion in 2007 and the two industries account for 5.4%of the country’s GDP.
C) India’s disadvantage in this market is that a recent study suggests that as early as last year the software and BPO industries would have suffered a labor shortage of about 500,000 workers, if the growth continued; if so the boom in Bangalore would have ended causing firms to shift their software development and BPO activities to other countries. As well as the fact that countries that speak English widely pose new threats to India’s dominance in the field. 2. If the Industries continued to grow the software and BPO industries would have suffered a labor shortage of about 500,000 workers and if so the boom in Bangalore would have ended causing firms to shift their software development and BPO activities to other countries. 3. To insure that their software and BPO industries remain competitive India can do what they are currently doing which is lobbying the government to continue to deregulate, privatize and encourage the FDI in the country’s infrastructure which will or should have them being able to better compete with their rivals.