International Call Center Outsourcing

by MIKE on JANUARY 20, 2011

While businesses have been pursuing cost-cutting measures for centuries, the IT
revolution has opened up entirely new possibilities in the form of business process
outsourcing. In particular, the ability to move enormous amounts of data across the
planet in real time and at virtually no cost has opened up many white collar positions
to the same competitive pressures that previously altered manufacturing and logistics.

Whereas companies were previously bound to the high per-employee costs of

national social welfare policies, this is no longer the case. Thanks to gigantic
advances in IT pipelines, a telemarketing call center performs the same function
whether it is located onshore, nearshore or offshore. The only difference is found in
the cost of physical plant and employee compensation.

An entirely new infrastructure of dedicated BPO companies has sprung up around the
concept of servicing the needs of an international trading company eager to shed the
fixed costs of its current customer service model. These liabilities are reduced by
contracting operations out to a call center outsourcing specialist based in a low-cost
part of the world. In addition to being less expensive in per-employee terms, many
such outsourcing contracts are based on a fee-for-service model so that the client only
pays for operations actually performed, rather than carry the inescapable fixed costs
of an in-house operation onto the bottom line.

Given the financial attractiveness of business process outsourcing, it is no surprise

that the sector has been growing every year and has now reached an estimated value
of 120-150 billion dollars annually. Due to its legacy as a former member of the
British Empire, India has been the location of choice for call center outsourcing and
enjoys a 63% share of the lucrative offshore outsourcing market. Naturally, other
players are eager to enter the market.
Recent efforts have been made by countries such as the Philippines and South Africa
to capitalize upon their own familiarity with the international language of business,
English, and bring some of these badly needed jobs home to their own ailing
economies. Even China has begun exploring the possibilities of establishing a
foothold in the business process outsourcing market. The main difficulty faced by
new organizations eager to enter the arena is the relatively low level of English
proficiency of startup employees.

Careful call center monitoring and programs of continuing education gradually build
communication skills to a more acceptable level. The current and growing success of
existing BPO companies makes it apparent that this is an industry that will continue
to grow and prosper.

The International Business and Languages Review

Linguistic and Cross-Cultural Challenges Faced By International Firms in Today's
Global Economy
Understanding International Business Cultures
by MIKE on JANUARY 14, 2011
The way the world conducts business has rapidly changed over the past several
decades. International business, trade and communication have been subject to
impressive growth, resulting in a world that appears smaller and is much more
connected. In accordance with the increased communication between countries
worldwide, there has been a marked increase in the study of international business
cultures, and of cultural awareness in general. This article discusses some of the
points that must be considered when doing business overseas and/or with any nation
or culture that differs from one’s own.

In international business, having an appreciation for cultural diversity is an essential

asset. Assuming that all business cultures operate in the same manner, regardless of
where they are situated geographically and culturally within the global community, is
a significant mistake that could cost any organization valuable business. In order to
address cultural awareness in business properly, it is first important to have a
thorough understanding of a given country’s cultural background. This understanding
should include, but should not be limited to the following: The country’s history, its
political makeup and its predominant religion(s). The country’s population, levels of
literacy, and its leading industries are also important facts to be aware of. Once this
general appreciation has been achieved, specific details on how to conduct one’s self
in various situations may be addressed.

Guidelines for appropriate conduct during conversations, business meetings and

social gatherings, as well as guidelines for appearance, including how to dress and
what facial expressions to wear at any given time, are just some of the specifics that
must be addressed when studying international business culture. All of the above-
mentioned elements will vary, depending on the country in question. Extensive
studies and programs have been developed to address these and other issues,
including, but not limited to the Foreign Services Institute, which offers government
employee training in cross-cultural communication, and the Geert Hofstede Analyses.
These and other resources should be sought out by anyone planning an international
business trip. To illustrate the extent of cultural differences in business practice, some
specific examples will be provided below:

Acceptable business attire in Japan is an example that clearly illustrates the

importance of cultural awareness in business. Because of the great emphasis on the
patriarch within Japan’s culture, women must give particular attention to their attire.
For instance, the wearing of pants could be construed as offensive to men. Similarly,
heel height should be carefully considered, as Japanese businessmen will not
appreciate having to look up when meeting a woman. For women and men alike,
consideration should be given to the quality of attire, as well as its ability to conform
to conservative business standards. Individuality is not highly encouraged within
Japan’s business culture, but indications of status and wealth are expected. These
facts are reflected in the dress code.
Individuals and companies involved in international business deals would be well
advised to make the study and understanding of international business cultures one of
their highest priorities. Taking advantage of multiple resources is a helpful way of
getting started. In addition, companies may wish to provide training for their
employees, to ensure that a unified approach is adopted throughout their
organizations.

How BPO Companies Are Adapting To International Business Culture

Posted on April 18th, 2011 No comments

Business process outsourcing has become a prominent part of corporate cost cutting.
The current boom in IT technology has only facilitated this, and BPO (Business
Process Outsourcing) companies are quickly moving overseas. There are many
reasons why this is happening. Technology has made moving large amounts of data
extremely easy, and that has made telecommuting cheaper. Plus, it has cut the costs of
communications between offices in New York City and those in India or mainland
China for example. While this has been great for the corporate bottom line, a lot of
American white collar jobs have vanished because of this. The same sort of work can
now be done overseas at a fraction of the cost.

This is due, in part, to economic differences between the developed and developing
world. The costs of goods and labor in China actively undercuts the same sort of work
in the United States. Plus, countries like China have less in the way of mandated
social welfare programs. This way, companies can relocate some of their operations
overseas and not have to worry about paying taxes, social security, a minimum wage
or any sort of health insurance. As a result, the amount of savings becomes
tremendous.

As a result, a whole new class and infrastructure of BPO companies have sprang into
being. This is especially true with companies facilitating the needs of trans-national
corporations. Also, this has placed a new emphasis on international business culture.
On a daily basis, many corporate execs and officers must contact and confer with
partners and colleagues on the other side of the world. This is wholly unlikely to
change anytime soon. Once a profitable system sets down roots, it is hard to shut it
down or alter it. However, we are still at the beginning of the technological changes
sweeping through business culture as a whole. Where to go from here will be
interesting, but there will always be a more global approach.

Work Environment

BPO's in India house young employees usually in their 20's and early 30's, the
environment at any call centre in India therefore becomes lively and vivacious
attracting many young students, fresh graduates and undergraduates. The youth is
enthusiastic about the whole idea of interacting with international customers, where
the BPO industry imparts special voice and accent training in addition to smart
problem solving techniques to new employees in order to handle customer queries
and requirements.

The youth working in these call centers are assured of an exciting salary package,
attractive perks and a jazzy ambience. To relieve the staff of stress and
unconventional shifts, BPO's make provisions for recreational activities like parties
and get togethers for social interactions and entertainment value. Moreover the
industry provides free pick and drop facility, subsidized meals and try to enliven the
environment with musical entertainment, yoga classes and contests making it an
attractive option for the youth.

However, work in call centers in India often starts late in the evening and extends till
dawn. The ungodly hours and graveyard shifts cascade into health problems including
digestive diseases, hair loss, back pain and stress whereas assuming a foreign accent
for long periods causes sore throats. The challenge lies not only conforming to the
time and speech of their customers but also handling irate and angry callers. The
repetitive nature of the job and repeated rejections from clients are key factors that
dishearten the Indian call center employees. The inherent problem with most call
centre employees is confronting long working hours, rigorous night shifts that has
consequences on the personal, physiological and social fronts.

BPO Culture

India has fast become the preferred destinations for offshore outsourcing leading to a
booming and progressive economy. The BPO industry in India has brought about a
phenomenal change in the lifestyle of the average Indian, predominantly the youth.

Call Centers have not only provided youngsters with employment opportunities but
the attractive remunerations and added perks have helped them keep pace with the
demands of modern lifestyles.

The Call Center culture is an inevitable outcome of the unconventional working hours
where time zone difference naturally exist between India and countries like America.
The BPO culture has altered the way Indians have lived for years permeating their
social and personal space. The call center is usually bustling at night when operations
are in full swing thus forcing employees to follow a nocturnal lifestyle and activities
appealing to the youth for its revolutionary style of functioning. A call center job
necessitates that workers adopt the western culture so as to identify themselves with
their customers leading to a gradual percolating of the western culture in the
environment.

The flips side unravels occupational hazards for employees associated with the BPO
industry. The work entails graveyard shifts which negatively impact an employees
health well being and social life. A call center employee is subject to multiple health
ailments such as stress, back pain and as the biorhythm of the body fluctuates
workers become prone to digestive disorders. Moreover, the long and rigorous
working hours leave little room for any social interaction or outings with family or
friends.

However, the call center industry has unleashed a lifestyle for the youth which is
addictive giving the Indian youth a taste of independency and freedom a concept
usually associated with the Western culture.

Non Profit Bodies Role

Non Profit bodies such as the National Association of Software and Services
Companies (NASSCOM), Confederation of Indian Industries (CII) and associations
such as The Business Process Industry Association of India (BPIAI) constantly work to
improve the working conditions in the ITES/BPO industry. These non profit
organizations work jointly with state governments to develop policies which address
employee related rules and ethics. Such organizations are instrumental in holding
seminars and conferences with foreign delegations to provide an opportunity to the
BPO and IT industry to gain insight into employee retention and industry growth.

Non Profit bodies working toward developing and improving the ITES/BPO sector.

 NASSCOM
 CII

 BPIAI

 The Business Process Industry Association of India (BPIAI), earlier known as

the Call Center Association of India (CCAI) was established in 2001 as a forum
for its members to promoting India as the favored BPI destination in addition
to addressing the challenges faced by the Business Process Industry (BPI).
The BPIAI constantly works towards creating networking opportunities for its
members through its events and conferences at the same time addressing
issues concerning outsourcing and offshoring comprising BPOs, Call Centers,
Contact Centers, LPOs, KPOs and the like.

 The BPIAI Association aims to make India the ideal destination of choice for
the Business Process Industry and serve as a channel for addressing issues
concerning the industry. The association devises standards for infrastructure,
security and human resource development for the BPO industry in addition to
providing insights and ideas on technology. On analyzing the challenges faced
by the BPO industry the association voices their concerns to the Government
so as to have policies formulated favoring BPO employees. The BPIAI works to
promote the overall retention through studies on people, workforce metrics,
promoting linkages between educational institutions and the industry to tackle
issues pertaining to manpower for this secto