CTET PAPER II 2018 · PYQ · Reading Comprehension · medium
What has caused Indian IT firms to change the way they conduct business in developing countries?
A.The volume of work being awarded cannot be handled by Indian firms
B.The demands of these markets are different from those of India's traditional customers✓ Correct
C.Wages demanded by local workers are far higher than what they pay their Indian employees
D.Stringent laws which are not conducive to outsourcing
Explanation
The passage states that earlier Indian IT firms wooed clients abroad and transferred work back to India for cost savings, but 'With costs in other emerging economies equally low, Indian firms can't compete on price alone.' Also, emerging-market companies are 'still unaccustomed to the concept of outsourcing'. Therefore the demands of these new markets differ from traditional US/Europe clients, forcing a change in business approach. Option (2) is correct.
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