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  • Sid's Questions and Answers. Roundtable Case #1.2: Cafes, Beaches, and Call Centers

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    - Europe spent close to $120 billion on outsourcing jobs in 2003, and this trend has continued. - Spain has been very successful in attracting outsourced jobs due to cheaper wages that are 30-50% lower than northern Europe, a high quality of life including good weather and nightlife, and EU membership allowing workers from other EU countries to work there without visas. - When structuring new outsourcing ventures in India, considerations should include establishing legal, liaison, HR, accounting, and project management offices tailored to the type of business, with the assumption that IT services can take advantage of lower Indian labor rates.

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    Homework questions for Economics in a Global Environment.

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    Week 5 Hm wk-2

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    - Europe spent close to $120 billion on outsourcing jobs in 2003, and this trend has continued. - Spain has been very successful in attracting outsourced jobs due to cheaper wages that are 30-50% lower than northern Europe, a high quality of life including good weather and nightlife, and EU membership allowing workers from other EU countries to work there without visas. - When structuring new outsourcing ventures in India, considerations should include establishing legal, liaison, HR, accounting, and project management offices tailored to the type of business, with the assumption that IT services can take advantage of lower Indian labor rates.

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    11 views2 pages

    Sid's Questions and Answers. Roundtable Case #1.2: Cafes, Beaches, and Call Centers

    Uploaded by

    sjones4718
    - Europe spent close to $120 billion on outsourcing jobs in 2003, and this trend has continued. - Spain has been very successful in attracting outsourced jobs due to cheaper wages that are 30-50% lower than northern Europe, a high quality of life including good weather and nightlife, and EU membership allowing workers from other EU countries to work there without visas. - When structuring new outsourcing ventures in India, considerations should include establishing legal, liaison, HR, accounting, and project management offices tailored to the type of business, with the assumption that IT services can take advantage of lower Indian labor rates.

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    Sids Questions and answers.

    Roundtable Case #1.2: Cafes, Beaches, and Call Centers


    Note: This is a group project and NOT an individual project. Please follow the instructions from
    the files Group Listing and How to Submit Group Projects posted on the Course Resources
    section. You will not get any credit if you copy your answers verbatim (i.e. word for word) from
    lecture notes, case studies, or external sources (i.e. book, websites, etc.).
    Total Points: 20
    1. How much is spent in job outsourcing in Europe? What is the trend? (2 points)
    According to the article, close to $120 billion was spent in 2003. (Weidenbaum, 2005)
    3. Explain any three reasons why Spain is very successful in attracting outsourced jobs.
    (6 points)
    According to the article, wages are cheaper about 30-50% cheaper than northern Europe, France
    and Germany. Another, important reason is the quality of life which includes the sun and sand by
    day and the exciting night life tends to attract and retain employees. Also it mentioned that
    because its a part of the European Union anyone from these areas could work there without a
    visa.
    2.b. How would you structure the new ventures? Be as detailed as possible. Highlight any
    assumption that you make in your proposal. (20 points)
    According to the case study, it seems there are can be a number of possibilities catering to the
    type of business conducted. There needs to be a legal department to handle the Indian laws
    pertaining to the company.
    Since this will serve as a branch office, there needs to be some type of liaison office. This would
    serve as representation between the home office and India. This office will only handle
    communication between the two. Of course there has to be HR functions such as hiring,
    terminations, accounting, payroll, etc. Then there is a Project office, to handle dedicated services.
    Of course this is according to the services whether it is IT, consulting, research, trading,
    Technical services, or even logistics.
    IT services will be a must. The labor rate has a tremendous advantage using outsourcing there.

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