Comparative Advantage that Indian companies have over Japanese companies Free Essay, Term Paper and Book Report
India's Outsourcing Firms Lure More Japan Business”
The article talks about how Indian Companies which provide computer engineering services are at a
comparative advantage due to the lack of skilled computer engineers in Japan. Japan's main industry is
engineering, but there is a lack of engineers in Japan, thus Japanese companies are outsourcing computer
engineering work to Indian companies and focusing their human capital in other areas of manufacturing and
financial services. Indian firm's ability to provide highly skilled engineering services at lower costs frees
up the resources for Japanese companies to invest other key functional areas.
Indian technology companies have traditionally depended on US Financial organizations for their revenues.
But with 2009 Financial crisis, spending on Information Technology decreased and this put a downward pressure
on the revenues of these organizations. Thus Indian technological companies started to focus on other
geographies. Though Indian companies had a presence in Japan from 1997, the opportunity cost of doing......
Word Count: 580
Page Count: 2.3 (250 words a page / double spaced)
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