| This is the age of globalization. The vast earth is | | | | is the age of liberalization. Almost all countries of |
| no longer unfathomed. We can reach every | | | | the world are now following the path of liberal |
| corner of the earth within a few hours due to | | | | economy. They have come to realize that it is |
| excellent modern communication. A person sitting | | | | the only way of development. The mobile phones |
| in India can talk to another person sitting in | | | | manufactured in China are sold the world over |
| Canada. The revolution in telecommunication has | | | | similarly the software developed in India is utilized |
| brought the people of different parts of the world | | | | in the entire world. Thus a sense of mutual |
| closer. Taking the advantage of this revolution, | | | | benefit has developed in the companies across |
| the large multinational companies thought to make | | | | the world. The governments of many countries |
| profit in their business in a new way. They | | | | have allowed the multinational companies to |
| started to outsource a part of their business in | | | | conduct their business in their own way in |
| other parts of the world where the manpower is | | | | different parts of the world so that the people |
| efficient and cheaper. The developing countries like | | | | can get benefit in one way or the other way. |
| India, China, Mexico, Philippines were the obvious | | | | India opened its gate for the multinational |
| choice as there is no dearth of talent and cheap | | | | companies in the nineties, since then Indian |
| manpower here.China, Singapore, Philippines, | | | | economy has been growing by leaps and bound. |
| Taiwan took the lead in outsourcing of | | | | The big companies have set up their business |
| manufacturing the hardware parts while India | | | | centers here and as a result the business process |
| carved a niche in the software outsourcing | | | | outsourcing has generated millions of dollar for |
| process. China remained behind in the software | | | | India. The multinational companies have got good |
| outsourcing field because it does not have | | | | service and have been able to cut down their |
| command over English. English is not taught in the | | | | cost, thus gaining the other way.Reasons and |
| schools of China as it as taught in India. The | | | | advantages of outsourcingCost Benefits - In |
| British had ruled India a century ago, so the | | | | many call centers in the USA and Europe labor |
| influence of English language remained throughout | | | | cost are the main operating cost, but in India it is |
| India. It is taught as a second language in every | | | | just a fraction. In the U.S. a call center employee |
| Indian state. There are many English medium | | | | can expect $20,000 per year for answering |
| schools in India where the medium of instruction is | | | | customer queries over the phone but in India the |
| English. Students coming out these schools can | | | | cost can come down to $2,000 per year, which is |
| talk in English smartly. Almost all big multinational | | | | 10% of the U.S. Cost. The companies have saved |
| companies are located in the USA, England and | | | | millions of dollar from this cheap workforce.Skilled |
| other countries of Europe and America where the | | | | manpower- Most of the call centers in western |
| medium of instruction is English. Since there are | | | | countries recruit high school graduates for their |
| many English speaking people in India, many large | | | | work but in India they can easily get graduate |
| multinational companies have outsourced a part of | | | | students as each year millions of students |
| their business to India.The types of processes | | | | graduate who can speak English very well but can |
| outsourced are Customer Support, Technical | | | | not find high paying jobs. As for India the call |
| Support and Backend processes. India has begun | | | | center jobs are well paid, the employees take it |
| to be known as the center of Back office | | | | as their full time job, whereas call center jobs are |
| operations for the entire world. Many large | | | | still considered as part time jobs in the |
| multinational Banks have decided to shift their | | | | west.Taking all these facts into consideration, the |
| back office work to India. HSBC, Aviva Life | | | | companies have got phenomenal success in all |
| Insurance, ABN Amro Bank have announced that | | | | respects while outsourcing their processes to |
| they would recruit thousands of Indians in their | | | | India. This has opened the gate for more and |
| Call Centers, which have been set up in cities like | | | | more processes coming to India. Insurance, |
| Bangalore, Kolkata and Delhi. The Call Center | | | | Banking, HR, Mortgage, Finance and Accounting |
| business has set a new era for global business. | | | | are some of the most popular off shoring |
| While the big companies can concentrate more on | | | | processes. By 2008 HR will be $40 billion market, |
| their business by drastically cutting their | | | | while Finance & Accounting will be $20 billion |
| maintenance costs, the educated and well versed | | | | market.Some of the top companies of the world |
| youth of developing countries like India, Mexico | | | | who outsource their business are:Convergys, Dell, |
| can earn some quick money and become a part | | | | GE, American Express, Amazon, Sprint and many |
| of international business. There are about 4 lacks | | | | others. |
| people working in different call centers in India.This | | | | |