Indian firms have achieved the highest levels of efficiency in the

Question

Indian firms have achieved the highest levels of efficiency in the world software outsourcing industry. Some researchers have assumed that Indian firms use the same programming languages and techniques as Chinese firms but have benefited from their familiarity with English, the language used to write software code. However, if this were true, then one would expect software vendors in Hong Kong, where most people speak English, to perform not worse than do Indian vendors. However, this is obviously not the case.

Other researchers link high Indian productivity to higher levels of human resource investment per engineer. But a historical perspective leads to a different conclusion. When the two top Indian vendors matched and then doubled Chinese productivity levels in the mid-eighties, human resource investment per employee was comparable to that of Chinese vendors. Furthermore, by the late eighties, the amount of fixed assets required to develop one software package was roughly equivalent in India and in the China. Since human resource investment was not higher in India, it had to be other factors that led to higher productivity.

A more fruitful explanation may lie with Indian strategic approach in outsourcing. Indian software vendors did not simply seek outsourced contract more effectively: they made aggressive strategic in outsourcing. For instance, most software firms of India were initially set up to outsource the contract in western countries, such as United States. By contrary, most Chinese firms seem to position their business in China, a promising yet under-developed market. However, rampant piracy in China took almost 90 percents of potential market, making it impossible for most Chinese firms to obtain sufficient compensation for the investment on development and research, let alone thrive in competitive environment.    1 
 1) Which of the following statements concerning the productivity levels of engineers can be inferred from the passage?

(A) Prior to the 1980's, the productivity levels of the top Indian software firms were exceeded by those of Chinese software firms.
(B) The official language of a country has a large effect on the productivity levels of its software developers.
(C) During the late 1980's and early 1990's, productivity levels were comparable in China and India.
(D) The greater the number of engineers that a software firm has, the higher a firm's productivity level.
(E) The amount of human resource investment made by software developers in their firms determines the level of productivity.

2 
 2) According to the passage, which of the following statements is true of Indian software developers?

(A) Their productivity levels did not equal those of Chinese software engineers until the late eighties.
(B) Their high efficiency levels are a direct result of English language familiarity.
(C) They develop component-specific software.
(D) They are built to outsource the western orders.
(E) They develop more packages of software than do those in Chinese developers.

3 
 3) The primary purpose of the passage is to

(A) contrast possible outcomes of a type of business strategy
(B) suggest more careful evaluation of a type of business strategy
(C) illustrate various ways in which a type of business strategy could fail to enhance revenues
(D) trace the general problems of a company to a certain type of business strategy
(E) criticize the way in which managers tend to analyze the costs and benefits of business strategies\

4 
 4) Which of the following best describes the organization of the first paragraph?

(A) A thesis is presented and supporting examples are provided.
(B) Opposing views are presented, classified, and then reconciled.
(C) A fact is stated, and an explanation is advanced and then refuted.
(D) A theory is proposed, considered, and then amended.
(E) An opinion is presented, qualified, and then reaffirmed.

Source: GMAT Sample Verbal Test

RC Butler 2021  -  Practice Two RC Questions Everyday.   
Passage # 69 Date: 18-Feb-2021
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road740 · Answer

Based on the % of people who had the first question right, the majority (including myself) had problems with it. Anybody out here who´d like to help?

Anki2609 · Answer

Let me add my 2 cents for question 1

The question asks about what can be inferred from the passage about th eproductivity level of the engineers.

Let's start by elimination

A. Prior to the 1980's, the productivity levels of the top Indian software firms were exceeded by those of Chinese software firms.

Refer to second para in the passage - It says in mid-80's two Indian firm joined and doubled the output. Nothing is known about priotr to 1980

B. The official language of a country has a large effect on the productivity levels of its software developers

Incorrect as in Para 1 they talked about English benefit for India but the Hong Kong that has more english speaking population but no benefit.

C. During the late 1980's and early 1990's, productivity levels were comparable in China and India.

Based on para 2. let's hold onto this.

D. The greater the number of engineers that a software firm has, the higher a firm's productivity level.

The number of Engineers in a firm is not a discussion or comparision point for author.

E. The amount of human resource investment made by software developers in their firms determines the level of productivity.

We can't say this. Refer to Last line of Para 2. They say that Human resource investment was equal in India an d China. So, this statement is incorrect.

Finally, C is the only otion we can narrow down to.

road740 · Answer

Thanks a lot! Now it makes sense. I didn´t really read "late" 1908s and "early" 1990´s - in my mind I tought "between the 1980s and the 1990s" and this, in my view, was too large of a timespan.

Next time I will read more carefully.

Thanks again and I wish you success with your studies!

kabirgandhi · Answer

7:10, 2 incorrect.

Can anyone help explain Q1?

It seems to me that choice C should not be the correct one, since we do not know that the productivity levels of Chinese and Indian software firms were comparable in the late 1980s and early 1990s.

We only know that the two top indian firms had matched and doubled the productivity levels of the Chinese by the mid-1980s. This does not seem like sufficient information to conclude that they were comparable. They could have been 1) Much higher, 2) Comparable or 3) Lower on an overall level (since we are only given information about the top 2 firms).

The only point where the word "comparable" comes in, is when talking about human resource investment, AND NOT PRODUCTIVITY LEVELS. Seems like a "matches but incorrect" trap"

dhruva09 · Answer

Let me try explaining how I looked at this question. The question is asking  Which    of the following statements concerning the productivity levels of engineers can be inferred from the passage?

Let's check each option

(A) Prior to the 1980's, the productivity levels of the top Indian software firms were exceeded by those of Chinese software firms.  
  - There is no mention of prior to 1980s productivity levels of Indians and Chinese. Hence eliminated.

(B) The official language of a country has a large effect on the productivity levels of its software developers.  
  - Simply not, since para 1 explicitly mentions that Hong Kong would have been comparable if this had been true, since most English speakers are present there. Hence, eliminated.

(C) During the late 1980's and early 1990's, productivity levels were comparable in China and India.  
  - The passage states "... by the late eighties, the amount of fixed assets required to develop one software package was roughly equivalent in India and in China."  This gives us the understanding that resources were equivalent for developing one software package. Hence, this can be kept. It is simply asking productivity level, so, considering the productivity impact could have been higher or lower would be just over analyzing of competition, which is not required.

(D) The greater the number of engineers that a software firm has, the higher a firm's productivity level. 
  - If this statement had to be true, then by the late eighties, the amount of fixed assets required to develop one software package would  NOT BE roughly equivalent  in India and in China. This is not mentioned and is clearly not the case. Hence, eliminated.

(E) The amount of human resource investment made by software developers in their firms determines the level of productivity.
 - Last sentence of second para, clearly states "  Since human resource investment was not higher in India, it had to be other factors that led to higher productivity ." Hence, eliminated.

Hope this helps.

Indian firms have achieved the highest levels of efficiency in the

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Indian firms have achieved the highest levels of efficiency in the

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