Iba Assignment

Topics: Outsourcing, Call center industry in the Philippines, Offshoring Pages: 13 (3844 words) Published: April 12, 2013
Question: 7

Outsourcing through the use of call centres in low-cost locations is an example of location advantages. Critically assess the benefits of outsourcing to the host country, giving examples.

Information Technology is a huge market. We accept so abounding competitors and companies aggravating to win a bigger allotment of the bazaar that it can be absolutely adamantine to survive. Hundreds of companies are activity out of business due to this competition. One band-aid that has appeared is IT outsourcing. By application these we can abate costs and accomplish college profits on a circadian basis.

Call center is growing business these days as companies on large scale are acquiring their services with the purpose to sell products as by taking lower cost advantage. None of any businessman prefers to invest blindly when he has the capacity to keep promotional budget lower. The rapid growth of this type of outsourcing has made most information technology organizations resorts to get required prowess with the purpose to run operations smoothly. In European market, heavy promotional campaigns used to be run as by acquiring call center services. Customers need not to visit market to inquire product information. He just has to pick of a phone call dialed by telemarketing agents. Call center agents from developing nations are supposed to develop their linguistic skills so well that they can talk with natives without letting him doubt about whether he is talking to another native or to some third world person.

As far as job that has to be performed by telemarketing agent that is to become patronage. He must answer all phone calls and should respond to customer requests. He is supposed to sell product and place customer order in computer system. He must be on follow on stance to meet customer queries immediately. On other hand, he must complete call logs reports in the adequate format. Most of the call center agents have to be given the rights to dial and receive phone calls. They haven’t had any positive participation in organizational development. Therefore, they should put in organizational process improvement, document customer based files and research on billing issues like why customers get irritated for every time without any concrete thing behind.[1]

Outsourcing calls center services:
It is good way to save over all operational cost as by hiring telemarketing agents. Herewith, information technology companies seem active to sell products over the telephone calls. The term outsourcing refers to the particular process of contracting with third party like what call center management does in most of the cases; they sign contract with concerned company that they have took the responsibility to promote company original brand. Outsourcing concept is lemmatized up to service disbursement, no other component find involved into it. It has been found in 1980s that transactional corporations have increased subcontracting across national boundaries.

We need to estimate the difference amid accessing call center services as by opening up a call center in United Kingdom in the comparison of getting call centers services from India/Pakistan/Bangladesh most of time. Hence, precise definition of outsourcing has yet to be agreed upon. However, outsourcing is often viewed as involving the contracting out of a business function. As per definition of outsourcing, two organizations can come together in a relation through contractual agreement involving an exchange of payments and services. There are thousands of examples visible in normal life such as almost of every manufacturing organization don’t hesitate to enjoy via this opportunity like they order for production to their outsourcing units in third world. However, they sell their products on good margin as per market rate in developed countries. [2] (use citations here)

Advantages of outsourcing to host country:
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