Asian Economics
Content
1)How has the global economic downturn in India, discussed in the opening profile and throughout
this chapter, impacted jobs outsourcing in the Business process outsourcing industry?
2)Referring to this chapter and this case, discuss the general trends in the globalization of human
capital
3)What are the effects of the Indian government policies on the Indian BPO industry and on MNC
decisions regarding locations for outsourcing jobs?
4)How does this case highlight the threats and opportunities facing global companies in developing
their strategies?
1.) How has the global economic downturn in India, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the Business process outsourcing industry?
Since the mid-1990s Business process outsourcing (BPO) firms have been one of the largest job creators in India. Key factors why India became so popular concerning outsourcing are the educated, young and english speaking population, high-end telecom, a good infrastructure, strong quality orientation within the industry and India‘s location on the map which allows it to leverage on time zone differences. Beside these factors, the Indian information technology software (IT), service organizations and a friendly and attractive tax structure also conduced to the growth of India as a big BPO industry.
Another key factor for the growth of BPO firms in India were the cheaper bandwidth.
Other countries that are known to be places were lots of BPO firms are based in are Singapore, Malaysia, the Philippines and China.
In the mid-2005s the Philippines became a popular outsourcing destination for the western world. At that point even India began outsourcing workforce to the Republic of the Phillipines. Big companies like Sitel, Genpact and Citibank started to establish offices in the souvereign state in Southeast Asia and also began to translocate local indian talents to the Phillipines to give them jobs in senior and middle management positions.
Today Manila, which is the capital of the Philippines, has already emerged rank number two concerning regarding destinations in the Asia-Pacific.
In fact of the economic downturn many multinational companies (MNC‘s) outsource workforce to the big BPO destinations to save money.
And by the downturn of the economy the number of workplaces being outsourced increased. Competition is getting harder in the global economy,