Indian Bpos

Week 1 Assignment

The primary purpose of this paper is to perform an analysis of the case study titled, “Indian BPOs - Waking Up to the Philippines Opportunity?” To accomplish this task, several topics will be addressed: How the global economic downturn impacted jobs outsourcing in the BPO industry, the general trends in the globalization of human capital, the effects of the Indian government policies on the Indian BPO industry and on MNC decisions regarding locations for outsourcing jobs, and the threats and opportunities facing global companies in developing their strategies. Lastly, a personal stance on the topic will be highlighted.

BPO Industry: The Economic Downturn

The global economic downturn has facilitated India’s BPO industry. According to Deresky (2011), world trade continues to flourish, and it has grown at an astounding rate - well over 100 percent, for the last several years. Additionally, it has afforded organizations the opportunity to move their operations abroad, where they are able to take advantage of reduced wages and taxes breaks. This added benefit has allowed many organizations to remain in business. The turmoil in the credit markets, and the decline in value of the US dollar has required organizations to search for opportunities and prospects abroad, where they are able to keep a lid on the cost of labor, and also find a better caliber employee - skilled workers.

General Trends in Globalization

The relocation of a business to another country outside of the United States has become somewhat of a trend. Businesses often employ these tactics due to the fact that it is always almost more cost effective to do so. Additionally, businesses may find the talent pool of employees to be superior to those in the United States (Madrilia, 2013). The fact of the matter is that more and more companies are becoming pressured in the current regulatory environment,

and in order for them to remain...