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From this perspective, the democratic system that works in India is bound to create a stable political environment for our company. This reduces very much the risk of potential problems such as nationalization or destabilization, caused by political turmoil. However, the last decades have seen a dangerous surge in terrorist acts in the country. From this perspective, the security environment is less optimistic in India than the political one.
Economical. The macroeconomic variables still remain very attractive in India. Besides the constant GDP growth of 5-6%, India can also boast a good education system, ready to prepare specialists for companies such as ours. The cast system is again determinant in many of these cases. People are generally rewarded according to their position in the caste, while the numerous traditions make it an environment with traits of particularism.
Any threats in this area can come from the risk of macroeconomic instability. This can take the form of inflation, if the economic growth encourages aggregate demand beyond saturation. Further more, it seems that many of the World Bank loans were not used towards structural reforms, but rather towards short-termed macroeconomic projects.
Cultural factors. From Hofstede's perspective, there are two important dimensions to be taken into consideration in India's case: power distance and masculinity vs. feminity. In terms of power distance, in India this is very large, with a strictly caste system. While it might be damaging in other conditions, in this particular case it ensures the fact that the company can implement a system where the Indian programmers are subordinated to the managers we will be brining in. On the other hand, India is very masculine from many points-of-view, so it is less likely that we should have female managers in the Indian branch office.
Bibliography
1. Business Opportunities in India - Tax and Legal Issues. 2007. On the Internet at http://www.outsource2india.com/why_india/articles/business_opportunities_legal.asp.Last retrieved on August 16, 2007
2. Nair, Pradep. March 2007. Opening the Doors to India: Offshoring Medical Devices. Md & DI. On the Internet at http://www.devicelink.com/mddi/archive/07/03/032.html.Last retrieved on August 16, 2007
3. Mitchell. Anthony. August 2004. Outsourcing in India Requires Dealing in Local Realities. E-Commerce Times. On the Internet at http://www.ecommercetimes.com/story/35474.html.Last retrieved on August 16, 2007
Business Opportunities in India - Tax and Legal Issues. 2007. On the Internet at http://www.outsource2india.com/why_india/articles/business_opportunities_legal.asp.Last retrieved on August 16, 2007
Nair, Pradep. March 2007. Opening the Doors to India: Offshoring Medical Devices. Md & DI. On the Internet at http://www.devicelink.com/mddi/archive/07/03/032.html.Last retrieved on August 16, 2007
Mitchell. Anthony. August 2004. Outsourcing in India Requires Dealing in Local Realities. E-Commerce Times. On the Internet at http://www.ecommercetimes.com/story/35474.html.Last retrieved on August 16, 2007
Bibliography
1. Business Opportunities in India - Tax and Legal Issues. 2007. On the Internet at http://www.outsource2india.com/why_india/articles/business_opportunities_legal.asp.Last retrieved on August 16, 2007
2. Nair, Pradep. March 2007. Opening the Doors to India: Offshoring Medical Devices. Md & DI. On the Internet at http://www.devicelink.com/mddi/archive/07/03/032.html.Last retrieved on August 16, 2007
3. Mitchell. Anthony. August 2004. Outsourcing in India Requires Dealing in Local Realities. E-Commerce Times. On the Internet at http://www.ecommercetimes.com/story/35474.html.Last retrieved on August 16, 2007
Business Opportunities in India - Tax and Legal Issues. 2007. On the Internet at http://www.outsource2india.com/why_india/articles/business_opportunities_legal.asp.Last retrieved on August 16, 2007
Nair, Pradep. March 2007. Opening the Doors to India: Offshoring Medical Devices. Md & DI. On the Internet at http://www.devicelink.com/mddi/archive/07/03/032.html.Last retrieved on August 16, 2007
Mitchell. Anthony. August 2004. Outsourcing in India Requires Dealing in Local Realities. E-Commerce Times. On the Internet at http://www.ecommercetimes.com/story/35474.html.Last retrieved on August 16, 2007
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