The outsourcing work to Wipro help General Electric’s to compete in the global economy because it allowed them to have talented labor forceat a reduced cost : “ had found a cheap source of talented engineers and programmers”, it has also permitted to extend the business to a new country : “ to using the country as a base for data entry,processing credit …”. We can suppose that with lower costs General Eletric will be able to invest more and the will help it to compete even more. Such outsourcing can harm at first the AmericanEconomy because if they offshore their production into another country, American job will be lost. But if this enables General Electric to have more profit and to invest more, it can help the Americaneconomy later as they will create new job for research.
General Electric did not help to create Wipro but it helps it to develop its technology sector. In 1989 General Electric entered into ajoint venture with Widpro and from this moment Widpro decided to develop even more it’s technology area. We can see this when widpro begun to work with other famous brand such as Hewlett-Packard,Sony, and Nokia…
If India continues to prosper; Indian’s engineer will make more and more money. They will have a better living than American engineers as prices in India are lower. It couldbe bad for American economy because it still be cheaper to hire Indian’s engineers so American engineers could lose their jobs. This will damage the American economy if the rate of employed qualifiedengineers is going up.
Widpro want to compete in the global economy and to enlarge its firm: “ Wipro however is not content to remain in the low margin end of software business”. Widprothink that the best way to do this is to move into foreign countries and to use local salesman over there to boost their sales. I think that this strategy is very helpful to develop the company into...