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Submitted To:

Samira Rahman (SMI) Course Instructor INB 480 (Global Business Strategy) SEC: 2 Assignment: Indian BPOsWaking Up to the Philippines Opportunity?

Submitted By:
Farhan Israq Ahmed Khaliqur Rahman Tasneem Haider Khan Farhana Islam Farah Sadaf Al Sabah Khan Muhammad Ali Ashraf 1110440030 0910982030 1110501030 1110263530 1010859030 071299030

School of Business, BBA Program


North South University

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 economic downturn has impacted jobs outsourcing in the BPO industry as it has helped to be one of the largest job creators in India. It has helped companies move operations overseas where they are able to capitalize on lower wages and taxes, which in turn has enabled many corporations to stay in business. The credit crunch and declining US dollar has forced companies to look overseas where they are able to reduce labor costs while at the same time find very skilled workers which was available in India and other Asian countries. 2) Referring to this chapter and this case, discuss the general trends in the globalization of human capital? Transferring business to other countries outside the US has become the trend because often times it is much cheaper and sometimes the service and skill set of the work force is better than at home. Most companies have to play on the global field and grab every opportunity around the world in order to remain profitable. So, they hire and train employees from the country you are moving operations into. India cost per employee has risen which has shifted many companies to look to the Philippines where it is much cheaper to employ while still keeping a highly educated and skilled workforce. 3) What are the effects of the Indian government policies on the Indian BPO industry and on MNC decisions regarding locations for outsourcing jobs? The Indian government worked hard to introduce initiatives to attract new companies into India for BPOs, but the economic downturn has made it more expensive to remain in India due to the declining dollar and rising rupee. Businesses are moving their operations to the Philippines where the US dollar goes a lot farther without sacrificing a skilled labor force. MNCs are now looking to other countries to invest because India has not adjusted to the economic situation and provided any solutions to keep companies investing in India. 4) How does this case highlight the threats and opportunities facing global companies in developing their strategies? The threats to all companies are the cost of doing business cannot outpace the revenue streaming into the company. With the global economic disorder affecting everyone, companies have to relook business plans and strategies. It has to be considered before investing that whether in India where infrastructure is not the best, tax breaks are no longer granted to BPOs, transportation costs are high or do they go with another competitor that can offer sweeter incentives to come to their country. On the other hand, Philippines have a young, educated workforce, world-class infrastructure, a government that trains their people, and offers a 10-year tax break. This is where costs are reduced effectively while still maintaining a highly skilled workforce.