The G Banking Group recently reported that it was off shoring (moving) its back-office operations from European country D to India where it already has some significant operations. Centralizing most back-office operations in India is part of the Group’s plan to grow its international banking business. (India is one of the fast emerging economies in the so-called BRIC group of Brazil, Russia, India and China).

According to a G Banking Group spokesperson, the move would involve cutting about 500 jobs from its operations in country D but generating a similar number of new jobs in India where it already employs 3,000 people. The pokes person was, however, quick to add that some call centres would still remain in country D.

One banking analyst commented that the Group’s current Chief Executive Officer (CEO) was ‘more aggressive’ and ‘less sentimental’ about moving back-office jobs than his predecessors. The National Secretary of the Banking Union described the cuts as ‘disgraceful’ and argued that it showed a lack of concern for the difficult employment situation faced by many young people in country D.

In response to such criticism, the CEO explained that banking was becoming increasingly global and that unless the Group responded to the global challenges facing it, it would be unable to survive into the future. The CEO went on to assure employees that it would assist those affected by the relocation of its operations in every way possible.

Describe the key factors involved in the emergence of the BRIC economies.