Practicing Success

Target Exam

CUET

Subject

Geography

Chapter

Fundamentals of Human Geography: Tertiary and Quaternary Activities

Question:

Read the given passage and answer the following questions.

Outsourcing or contracting out is giving work to an outside agency to improve efficiency and to reduce costs. When outsourcing involves transferring work to overseas locations, it is described by the term off-shoring, although both off-shoring and outsourcing are used together. Business activities that are outsourced include information technology (IT), human resources, customer support and call centre services and at times also manufacturing and engineering.

Data processing is an IT related service easily be carried out in Asian, East European and African countries. In these countries IT skilled staff with good English language skills are available at lower wages than those in the developed countries. Thus, a company in Hyderabad or Manila does work on a project based on GIS techniques for a country like U.S.A. or Japan. Overhead costs are also much lower making it profitable to get job-work carried out overseas, whether it is in India, China or even a less populous country like Botswana in Africa. Outsourcing has resulted in the opening up of a large number of call centres in India, China, Eastern Europe, Israel, Philippines and Costa Rica. It has created new jobs in these countries. Outsourcing is coming to those countries where cheap and skilled workers are available. These are also out-migrating countries.

Which is NOT a characteristics of a country providing outsourcing services?

Options:

Availability of information technology skilled staff

Workers having good English language skills

Quality services are provided at high cost

Lower wages than developed countries

Correct Answer:

Quality services are provided at high cost

Explanation:

The correct answer is Option (3) → Quality services are provided at high cost

3. Quality Services Are Provided at High Cost: This statement contradicts the expectations in outsourcing. One of the primary motivations for outsourcing is often to achieve cost savings. Countries that provide outsourcing services are known for offering quality services at a lower cost compared to developed countries. High-quality services at a lower price point contribute to the attractiveness of outsourcing.