Globalization and Interdependencies

Case Study
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Case Study
The case provides valuable insights that can be used in understanding the impact of globalization. It questions whether global outsourcing is convergent or divergent, adding to the current debate of globalization convergence and divergence. It focuses on India, a new industrial country known as a cheap source of labor for highly industrialized countries. It highlights how global outsourcing has extended beyond searching for and providing cheap labor. Companies are now outsourcing R&D to India, making India more than just a source of cheap labor (Sorge et al., 2015).
The case demonstrates increasing interdependencies between enterprises in different countries. On the one hand, multinational firms from developed nations are seeking R&D services from Indian firms (Sorge et al., 2015). In the process, they are getting access to IT professionals at a lower cost. On the other hand, Indian firms are gaining access to knowledge from developed nations in the form of returning expatriates (Sorge et al., 2015). Expatriates might have a unique outlook and understanding of innovation because they have international exposure.
The case also indicates that through globalization, R&D firms in India are paying particular attention to intellectual property (IP) rights. Most countries have different regulatory schemes concerning IP rights and labor. As a result of these different regulatory schemes, many companies are opting for reshoring other than outsourcing to avoid IP rights concerns in emerging and developing countries (Schermerhorn & Bachrach, 2020). However, the case study reveals that firms in India have well-defined processes for protecting their customers' IP, which signifies growth. India...