edf40wrjww2CF_PaperMaster:Desc
Abstract
Outsourcing is becoming more prominent in a range of IT industries. Organizations are focusing on core business and are wishing to achieve large cost savings. For the purpose of this paper, let us just imagine there is a company called Ezy. It is a West Australian company; it provides a range of medical services and wants to outsource its system for following up patient accounts to an accounts service provider in Bangalore, India. The Indian firm already provides similar services for similar medical services companies in the United States.
This paper tries to do a political risk assessment for Ezy by firstly identifies critical and relevant issues, predicts potential political events which may affect Ezy's operations if it decided to outsource to Bangalore, the events' probability of occurring, and finally concludes whether Ezy should do the outsourcing or not.
Issues Relevance to Ezy
Political climate
India is the largest democracy in the world. It is a sovereign democratic republic and has a parliamentary system of government with a federal structure. The central government in New Delhi has exclusive jurisdiction over all matters of national interest such as defence, communication, banking and finance, international trade and foreign affairs. The state governments have primary responsibility for matters such as law and order, education, health and agriculture.
Political climate is stable, although the current ruling government is a coalition of several political parties, which came together to form the National Democratic Alliance.
Economic climate
In the last decade, significant structural reforms helped India become one of the world's fastest growing e ...