Case Study Indian Bpo

Manjunath Biradar

CASE STUDY

Indian BPOs – Waking up to the Philippines opportunity

1. How has the global economic downturn, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the BPO industry?

Answer: The International Institute for labor have discussed in the opening profile “The reason behind the global economic downturn is the financial crisis which is hitting the world of work”. The credit crunch and collapse of stock markets are starting to effect firm’s investment decision for global market as well as workers incomes. American export and subprime mortgage mess caused the global economy to hit the brakes. Due to this reasons the industries has to force their work to outsource to reduce there working cost and but this way they can focus on some core factor in the industry. Due to reduced cost, companies have capacity to hire more employees which in deed help the company and economy of that country to grow. As per the case study you can see the high numbers of BPOs are in India, Philippine and the economy of India is growing due to high level of employment for skilled labors. Since the BPO industry needs more employees with low cost, which is not possible in highly developed countries like UK USA, Australia, etc. So it is better to outsource it to the countries where they can reduce their cost and hire more skilled labors within their budget.

2. Referring to this chapter and this case, discuss the general trends in the globalization of human capital?

Answer: Globalization helped most of the under developed countries to develop their economy and create a job opportunities in the country. The growth of economy was seen in countries like India, Philippines, etc. due to high volume of investments in industries like BPO and NGO (non government organization). The outsourcing has grown in the past years which in deed needed more employment which can be created by globalizing the market of labor. As discussed in...