India is a destination for global outsourcing. Which of the following

India is a destination for global outsourcing. Which of the following is/are the more appropriate reason(s) for making the multinational corporations choose India for outsourcing their services?
1. Lower wage rate
2. Higher rate of unemployment
3. Availability of skilled human power
4. Cordial relationship with government
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1 only

1 and 3

2 and 4

3 and 4

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Answer is Wrong!

This question was previously asked in

UPSC Geoscientist – 2021

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Multinational corporations choose India for outsourcing services primarily due to the combination of lower wage rates compared to developed countries and the availability of a large pool of skilled human power, especially in sectors like IT and BPO.

Cost advantage through lower labour costs and the presence of a large, educated workforce with necessary technical and language skills are the most significant factors attracting outsourcing to India.

While factors like favourable government policies and a potentially large labour pool (partially related to unemployment) can play a role, the core business reasons are the economic benefits derived from reduced operational costs and access to talent. “Cordial relationship with government” is too general and not a primary decision driver compared to concrete economic advantages and available skills.

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