Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

As a form of economic activity, why has outsourcing intensified in recent times ?

Options:

Due to trend of hiring employees from foreign countries

As it increases the brand value of the company

Due to growth of fast modes of communication

All of the above

Correct Answer:

Due to growth of fast modes of communication

Explanation:

As a form of economic activity, outsourcing has intensified, in recent times, because of the growth of fast modes of communication, particularly the growth of Information Technology (IT). Many of the services such as voice-based business processes (popularly known as BPO or call centres), record keeping, accountancy, banking services, music recording, film editing, book transcription, clinical advice or even teaching are being outsourced by companies in developed countries to India.