*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 Electrics 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. *GEs work with Wipro gave GE access to local knowledge to penetrate the Indian market *GEs 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 Indias 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 mentions ANY ONE OR MORE OF THE FOLLOWING POINTS, fully explained. Award only 1 point if the student does not support his/her conjecture with logic or fact. *If Indias IT companies prosper, and demand continues to increase, wage rates will equalize between the U.S. and India because given the population differentials, it is likely that new U.S. programmers will be paid less that formerly. Moreover, as demand for Indian engineers grow,

assuming insufficient supply of skilled Indian engineers, the price (wage) of such engineers will rise. *[If ,] wages will still not equalize because it is possible that U.S. programmers will move on to higher-paid, higher level jobs so that the income differential will not equalize. *[If ,] wages will still not equalize because the world is not limited to India and the U.S., and other low-cost, highly skilled countries (such as China) may step in with a fresh supply of engineers and prevent Indian software engineer wages to rise completely to US levels. ANSWER 3b: Award 2 points if the student mentions ANY TWO OR MORE of the following points. Award 1 point if the student mentions only one of the following points. *The implications for the American economy are a downward pressure on wages *The price of software will decline. *If routine programming is done in India, U.S. programmers can thrive by focusing on more innovative work, higher-skilled activity. QUESTION 4: Since 2000, Wipro has moved abroad, establishing sales offices in 35 nations and design centers in nine. Why is Wipro doing this? (3 points) What would happen to the company if it did not follow this strategy? (2 points) ANSWER 4a: Award 3 points if the student mentions ANY TWO OR MORE of the following points. Award 1 point if the student merely mentions ONE of the following points: *Wipro is developing client relationships that can facilitate the import of labor into India. *Wipro has learned that it is important to avoid the mistakes the US firms committed by being far from the client with call centers located abroad. Instead, Wipro wishes to be close to the client to better understand what the client wants/needs. * Wipro wishes to move up the value chain in the IT business by not just doing the IT work delegated to it, but by also chasing after more lucrative projects *Wipro wants to have a local presence by hiring local nationals who understand the respective local market (in Germany, in the U.S., etc). ANSWER 4b: Award 2 points if the student argues the following, explaining his/her answer fully. Award 1 point if the student makes the following point without support or explaining his/her answer. If Wipro did not get close to its client, they would have slower growth and loss of competitive advantage. QUESTION 5: What does the rise of Wipro teach you about the nature of the global economy in the first decade of the twenty first century? (2 points) ANSWER 5: Award 2 numerical points if the student mentions the following point. Award 1 point if the student makes other supportable, logical claim(s) for a lesson learned. Wipro has a competitive advantage in terms of cost, but it needs to reinvest some of their gain into closer relationships with the client. Face-to-face still matters and even in the midst of

globalization, it is still necessary to customize to your clients particular preferences. Just like Wal-Mart suppliers who locate representatives in Bentonville, GA (this is where Wal-Mart is headquartered), Wipro has discovered that it needs a local presence. For the remaining five points, please award: 2 pts. for clarity, good reasoning, supporting statements throughout the paper, arguing both sides, etc. 2 pts. for mentioning more than just the basic two out of the possible answers and for suggesting additional (well supported) answers 1pts for adhering to the format and an overall clarity of the paper (to ensure that students be as precise as possible without unnecessarily exceeding the two-page requirement)