Wipro Case

*25 points total for the Wipro Case

In this case, we will award 20 total substantive points as follows.

QUESTION 1: How did outsourcing work to Wipro improve General Electric’s ability to compete in the global economy? (3 points) Does such outsourcing harm or benefit the American economy? (2 points)

ANSWER 1a: Award 3 points if the case write-up mentions ANY TWO OR MORE of the following points. Award 1 point if the case write-up mentions ONE of the following points.

*GE was able to reduce the labor portion of costs by outsourcing to Wipro.

*This increased their ability to be competitive in the global marketplace.

*GE’s work with Wipro gave GE access to local knowledge to penetrate the Indian market

*GE’s work with Wipro gave GE a launching pad to other Asian markets

ANSWER 1b: Award 2 points if the case write-up mentions ONE of the following:

*Short-term, such outsourcing did hurt American workers whose jobs were outsourced, of course, yet long-term, it improved the economy through job growth.

*

QUESTION 2: Did General Electric help to create Wipro? How? (3 points)

ANSWER 2: Award 3 points if the case write-up mentions ANY TWO OR MORE of the following:

* it provided work (provided financial stability)

* it provided a management model (six-sigma) for Wipro to emulate and learn

*by playing Wipro against other Indian companies, GE provided pressures to which Wipro had to respond by increasing efficiency and improving quality

*it provided credibility (brand cachet, brand name, good will) for Wipro to work with other multinationals (after all, people tend to know GE, and not Wipro, in the beginning)

QUESTION 3: If India’s information technology companies continue to prosper, over time what do you think will happen to the income differential between software programmers in the United States and India? (3 points) What are the implications for the American economy? (2 points)

ANSWER 3a: Award 3 points if the case write-up...