0816_TOEFL-Test-and-Score-Manual-1997

Going Global ● 267
More Thoughts on Doing
Business in India
• Learn how India’s Foreign Exchange Regulation Act affects financial
transactions.
• Find an accountant who is familiar with Indian accounting rules and
regulations.
• Cultivate personal relationships. Bring American-made gifts that are
not widely available in India.
• Make sure your Indian business partner has a good reputation, as
well as good contacts.
• Learn as much as you can about the culture and what to expect
before making travel plans.
• Book hotel rooms in advance. Many, especially in major cities, are
filled with foreign businesspeople.
• Be on the lookout for torn or damaged bills. Many merchants won’t
accept money with holes. (Banks staple the notes, and the staples
often rip up the bills.)
Offshoring and
Outsourcing in India
Even if you don’t plan to sell products to India, you might consider
hiring people there to conduct all sorts of operations. The outsourcing
industry actually started in India and has grown to about $47 billion
a year, capturing more than half of all offshore outsourcing.
The United States and Europe are the largest customers for the
Indian outsourcing industry. The United States accounts for 60 percent,
and Europe 31 percent. Financial services companies represent 41 percent;
high-tech/telecom, 20 percent; manufacturing, 17 percent; and
retail, 8 percent, according to federal government reports and Financial
Express.com. In 2009, offshoring companies employed about 2.2 million
people in India.
India’s outsourcing industry is expected to surge nearly fivefold to
$50 billion by 2012.