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As the Developed World Faces Recession, the BRIC Economies are Decoupled / Immune from the Global Crisis.
BRIC countries have been touted as potential new regions to offshore services. India is the leader in outsourcing in BRIC countries. China has the potential to become India's nearest rival; Russia is now the world’s biggest destination for outsourcing software. Outsourcing industry due to crisis can stop to increase or continue to grow as investors will try to cut their expenses to maximum. BRIC economies have changed to build their economies more attractive for outsourcing which can lead to faster recovery from crisis.
BRIC countries can first recover from financial crisis mostly because they have strong domestic demand, high foreign trade reserves; less consumer dependency from borrowing, thus its bank sector is more protected against credit crunch. Reducing inflation rates can be beneficial to consumers with low and middle incomes, and as a result it will increase domestic demand. BRIC’s is one of the most popular destinations for offshore services. Brazil, Russia, China and India together have all the resources to achieve faster recovery; working in team could make economic growth speedy. But still each country alone has natural resources and economical potentials to achieve faster recuperation than the remaining part of the world.
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