1.How has the global economic downturn, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the BPO industry?
The global financial crisis caused many changes in economic situation in the world. As International Institute for Labor wrote “Several major developed economies have practically entered into recession and unemployment is on the rise. Economic growth in emerging economies and developing countries has slowed down, in some cases significantly”. A global problem called for a global solution. Different country’s governments undertake different measures to help banks to survive, e.g. guarantee deposits, bonds and debt etc. The global economic downturn leads companies to reduce their costs. Business competitiveness has now developed to a level of sophistication commonly called globalization—global competition characterized by networks of international linkages that bind countries, institutions, and people in an interdependent global economy. Economic integration results from the lessening of trade barriers and the increased flow of goods and services, Capital labor, and technology around the world. The invisible hand of global competition is being propelled by the phenomenon of an increasingly borderless world, by technological advancements, and by the rise of developing economies such as China and India. India is one of the countries with emerging markets.
However, there are important aspects of globalization other than economic factors, though these aspects are intertwined. India is on the second place in 20 top countries as measured by four comprehensive factors - economic integration, technological connectivity, personal contact, and political engagement. Although the United States leads the world in technology, it falls behind a number of countries on the other three factors. It is clear that economic globalization will be advanced by corporations looking to maximize their profits with global efficiencies, by...
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