As global demand rises for technology and engineering services, Wipro, Ltd., wants to bring much of the business to Bangalore. The Indian company—which has offices across Europe, Asia, and the United States—writes software, handles back-office operations and designs high-tech products for some of the world’s largest corporations. When Fiat wanted a satellite navigation system for its Alfa Romeo sports cars, it hired Wipro. Nokia, Morgan Stanley, Cisco, Honeywell, and General Motors are among the 420 other companies that have drawn on Wipro’s expertise.
1. How is Wipro using the factors of production to fuel global growth?
2. What are the advantages and disadvantages of using a manufacturer like Toyota as a role model for a service business like Wipro?
3. What effect might the trend toward outsourcing have on the economy of India? What effect might this trend have on the economy of the United States?