Globalization in India

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Globalization has been an indispensable part of the recent economic progress made by India. Globalization has played an integral role in the growth of outsourcing IT and business process outsourcing (BPO) services. Over the past decade, both foreign and local companies, have employed India’s highly skilled professionals to service clients in the US and Europe. By capitalizing on India’s lower cost but educated and English-speaking workforce, and utilizing global communications technologies, international enterprises have been able to lower their cost base by establishing outsource knowledge- worker operations in India. The information technology sector has provided substantial benefits to the country’s economy. The IT-BPO industry has considerably stimulated India’s GDP, from 1.2% In FY1998 to 7.5% in FY2012. Its reputable information society has become a powerhouse in global outsourcing. Boasting aggregate revenues of USD $100 billion in FY2012, India has become a preferred location for foreign direct investments (FDI). The economic benefits of the IT industry has saved India from bankruptcy – exports were 4% of GDP in 2012, keeping the balance of payments in passable shape. Many profitable opportunities have been provided to the Indian market through FDI expanding operations. The sector has created millions of jobs across India being a net employment generator – providing direct employment to about 2.8 million, and indirectly employing 8.9 million people. The leading exporter of IT services in Bangalore, it is considered to be the Silicon Valley of India. Bangalore’s IT sector is saturated with the global software giants such as Google, Microsoft, and Yahoo earning a reputation for being an entrepreneurial technology hub.