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According to the passage, which one of the following is not a difficulty that Indian IT firms will face in emerging markets?

  • A.Mindset resistant to outsourcing
  • B.Local IT services are equally cost-effective
  • C.The US is their preferred outsourcing destination
  • D.Conflicts arising during the training of local talent

Answer: C

The statement that is not a difficulty is that the US is their preferred outsourcing destination.

The passage lists three difficulties in emerging markets: companies there are 'unaccustomed to the concept of outsourcing' (a mindset resistant to outsourcing), 'costs in other emerging economies [are] equally low' (local services are equally cost-effective, so price alone does not win business), and 'cultural conflicts arise at times while training new recruits'.

The US is the established market where the firms already do well, accounting for 60% of export revenue; that is why they are looking elsewhere, and it is not a difficulty of working in emerging markets.

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