Indian Bpos- Waking Up the Philippines Opportunity

Indian BPOs- Waking up the Philippines Opportunity Analysis The Indian labor market has always been key in globalization, and has been attractive due to its low wages, and the scientific and managerial talent found in the country. The main issues faced in this case mostly stem from the loss of the tax abatement in India, in addition to the weakening US dollar. Due to these two issues, doing business in India versus other fruitful options like Philippines becomes very expensive. These are major challenges to combat for any firm looking to outsource in India. In India, the infrastructure along with the setback discussed around transportation, puts a strain on the bottom line. The Tax abatement ending in 2009 was the initial cause of†¦show more content†¦(p. 33). This increase in the cost of BPO outsourcing to India immediately made other locations, such as the Philippines, much more of an attractive destinations for outsourcing. (Deresky, 2011). Pramod Bhasin, CEO of Genpact said it best The amount of additional I have to bear to do business in India is massive. In the Philippines, I don t have to spend a dime on transporting employees, a luxury I cannot afford in India. Bhasin implied that companies like his would immediately start to look elsewhere to do business due to rising costs. The Philippines emerging as the most-preferred destination for voice-based BPO. destination is a wake-up call for the larger Indian BPO sector, says Mr V. K. Mathews, Executive Chairman, IBS Group (The Hindu Business Line 2005). 4) How does this case highlight the threats and opportunities facing global companies in developing their strategies? Trends in the marketplace can help determine areas a firm can explore to be successful. Use of carefully considered outsourcing can be a critical component of corporate strategy for any multinational corporation. With outsourcing opportunities in front of them, these corporations should first work to understand the demographics and capabilities of the workforce before making any moves. Companies shouldn t simply resort to outsourcing and assume it would automatically translate to lower costs. It is important to study labor supply and demand, in order toShow MoreRelatedEssay on Indian Bpos Waking Up to the Philippines Opportunity?1535 Words   |  7 PagesCase Study -1: Indian BPOs Waking Up to the Philippines Opportunity? To: In Partial Fulfilment for MBA in Management and Administration How has the Economic downturn, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the BPO Industry? According to the Business Dictionary, Economic downturn is a situation inRead MoreIndian Bpos- Waking Up the Philippines Opportunity Case Analysis776 Words   |  4 Pagesexpensive to do business in India compared to other locations like the Philippines. B. Micro- In India the transportation and infrastructure costs continue to hurt the bottom line. II. Causes- Tax abatement ended in 2009, transportation and infrastructure costs are not going away and other countries have more attractive incentives to bring in higher margins. III. Systems affected- The whole upswing in bringing BPOs into India has been affected, it is no longer that attractive to bringRead MoreIndian Bpos Essay906 Words   |  4 PagesCase Study- Indian BPOs- Waking up to the Philippines Opportunity 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. Due to this, many companies had to increase their operations output and therefore employ more and more people to keep up with the expandingRead MoreStudy of Recruitment Process and E- Recruitment12119 Words   |  49 Pagesdeploying web-based tools for inviting and comparing resumes. The term e-recruitment means using information technology (IT) to speed up or enhance parts of the recruitment process. It ranges from the applicant interface for advertising vacancies and making job applications, to the back office processes, which allow a liaison between human resources (HR) and line managers to set up a talent pool or database of potential recruits. Many big and small organizations are using Internet as a source of recruitment