“Better Life” Desires in India Will Affect Projects
The McKinsey Quarterly reveals household consumption statistics in India in their article on “India’s Rising Middle Class Wants a Better Life“. Whenever someone complains that India, and other countries, are taking jobs away from the US via “virtual” business processes enabled by technology, I point out the inevitable rise in living standards that will result and the costs of doing business this way (miscommunication because of culture and language, technology, customer frustration/perception). The article shared this information on the changes forecast:
The composition of the spending patterns reveals the trend toward expecting to be paid more:
“…discretionary outlays (such as mobile phones) occupy more of India’s shopping basket, even as the absolute sums devoted to necessities, such as food, continue to rise. Above all, consumers will increase the amounts they spend to improve their economic prospects and quality of life—for better health, education, transport, and communications.”
For those who argue that the relatively “unskilled” jobs aren’t affected:
“This shift has begun at lower income levels than it did elsewhere, so multinationals that compete in the country must keep costs low enough to avoid being squeezed between the desire of so many Indians for a middle-class lifestyle and the realities of their limited budgets.”
What business processes has your company outsourced? How is the change in India’s living standard expectations affecting your company?
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Tags: Bob-Turek, consumption, cost, family, India, living-conditions, middle-class, projectmanagement411, projects, strategyRelated Stories
POSTED IN: Solutions and Trends Requiring Projects
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