Outsourcing
Outsourcing is the contracting out of a business process to a third party. MEDCs outsource specific operations. Common operations outsourced by MEDCs are catering, cleaning, IT support, security, maintenance, and call centers. The main goal of outsourcing include reducing the costs, improving quality of service, benefit from outside expertise, avoid training costs, etc. Once a country is outsourced, the outsourced country will improve in terms of media, IT skills and understandings, become exposed to diverse culture, overcome language barriers, and have better communication due to high technology.
India is the strongest competitor of the Philippines in the BPO industry. India used to be the country that had mostly been outsourced by the American firms. However, in the article I have found, the Philippines has attracted more companies because the Filipinos have a more understandable accent to Americans. Also, since the Philippines had once been under America's imperial control, its people came to have beliefs and perception similar to those of Americans. In specifically, both countries have the same national sports, school system, and legal framework. As a result, there are more Filipino workers (20,000 more than the Indians) working for America's companies. The article even mentions that some companies in India are planning to move to the Philippines.
How is having a more similar culture to the US beneficial? Are you talking about all the outsourced jobs generally? Outsourcing call centers to the Philippines and India, as you mentioned, is common. I guess I see the point about the pronunciation, but for the others I don't really get it.. I think Philippine and US culture is still pretty different. Also, I think India would have similarities with US culture as well... Maybe you can explain your thoughts further :D
ReplyDeleteIt was interesting to know that US outsourcing has more Filipino workers than Indians, and that some countries are transferring to the Philippines. I thought that India, being a more populated country, would have more workers.
I appreciate your comments about my opinion but I would like to clarify some points. First of all, I am not saying that the Philippines and American culture are similar in all aspect. My point is the Philippines culture has been influenced so much by the American culture so that Filipinos have a good understanding of American ways and thoughts. Specifically, a lot of educated Filipinos are familiar with the American English which is why it is relatively easier for them to communicate with Americans. Second, I am referring to the voice based aspect of the BPO., which involves receiving calls from abroad. The Indians do more of the non voice based aspects such as HR, accounting, and paralegal work.
DeleteDo you two have these in-depth conversations in person? If not, you should!
ReplyDeleteYour question almost inherently feeds its way nicely towards this week's topic. The obvious answer is that shared cultures can do business with one another. That is the main benefit. I think shared cultures also understand one another better and can maintain strong political ties too as allies.