What are some reasons outsourcing can be bad for India?

Question

I know outsourcing is seen as a positive for India's population but what are some reasons that outsourcing can be detrimental to the economy.

Answer 1

I don't know about the economy, but I'm sure when companies in America set up call centers in India, I know first hand how bad, it irritates us as Americans trying to understand the accent. It's nothing against the Indian people, but from a standpoint of an American it would be nice to talk to Americans, or people who can speak and understand it fluently. It's very frustrating not being able to have questions addressed because the language barrier.

I think that a lot of companies that are currently employing Indians and outsourcing to other countries, may start to return back to America if their sales decline due to customer service related issues.

It's a common complaint in America when we call for technical service, credit card info, and other reasons we need to speak to someone.

It's not that you guys are very kind. Because you are, some of the nicest people to speak too, It's just hard to tolerate when you have a problem that needs rectified now!

Answer 2

It has very few downsides for the Indian economy until India develops enough to have a labor shortage. The money earned is spent in India which generates more economic activity, and it does not drain India of skilled labor so it is much better than Indian workers going to other countries to work. It does create income inequality by making some people better off, which may cause social problems. but it does not make other people worse off except perhaps American programmers.

Answer 3

ummm pollution increases.