Advantage and Disadvantage of Outsourcing to India andRecommendation.Introduction:
Outsourcing can be described as part of an organizational operation to an external trader to achieve costleadership and potential market share. In the existing global economy, it is significant for Multinationalenterprises to locate ways to achieve the organisational vision by using less resource and cost.India is one of the world’s most potential and emerging economies. Besides the booming economy, marketsize, cost factor, governmental policy and other global corporate friendly environment have been inspiredMultinational enterprises ( MNE) to have their secure foot hold in India as a part of their global outsourcinglike British petroleum, Nokia, General motors, Ford motors, Samsung, LG, Microsoft, IBM etc.However, in spite of having a great possibility and prospects, the outsourcing performance of Multinationalenterprises (MNEs) in India have been apparently mixed. A lot of MNEs has succeeded noticeably and doingpretty well, however a numerous MNEs those market access strategy and penetration strategy have beensucceeded in different countries are struggling to cope with Indian market, and produce appropriate productsand service as required. Why some MNEs are accomplishing their vision so well where as others has failure tobe succeeded? This paper is an initiative to provide an analytical explanation of external influentialdeterminants of Indian market to attract MNEs for outsourcing. Advantage and disadvantage of globaloutsourcing for MNEs in India will be discussed by reviewing the previous studies and two case studies will beanalyzed in order to supporting different aspects and creating a set of recommendation to Indian market toaccelerate the success rate by reducing drawbacks.
Evaluating the Influential factors associated with global outsourcingin India via PESTLE analysis:
According to (UNCTAD 1998) MNCs are highly searching sites where they can join their own portable resourcesmost effectively with the importable assets they require to come up with goods and services for theirexpecting market. This paragraph of this report will explain different external factors act as primary issues thatMNEs always analyse before their foreign direct investment in India.