Why UK-Based MNCs Moved Their Call Centers to India
“Why did so many UK companies transfer their call-centres to India?
Assess the problems they encountered.”
Abstract
Over the past decade, it has seemed like a wise strategic decision for many multi-national corporations (MNCs) to relocate their customer service centres or “call centres” to LEDCs such as India, with the view of cheaper labour and relaxed employment laws potentially being some of the incentives for such a decision. This essay will explore these reasons in great detail and also suggest explanations as to why a number of said companies ha ve recently returned to the UK after experiencing a number of problems. This work will conclude to recap on findings and offer alternatives that MNCs may wish to investigate further. The Benefits of Offshoring
“Each call is being monitored, each call is being recorded. And they randomly pick up any call and then monitor the call, see the work you 're doing.” (Mirchandani, 2003)
Control. A single word that I will argue as being the main reason for the offshoring of thousands of UK based multi-national jobs to India. Whether it is the constant monitoring of agents work, as shown in the words of one Indian worker presented above, or whether it is the control of costs and customer service that UK managers worry about on a day to day basis, control has a vital part to play in any decision to set up operations in cities such as
Mumbai or Delhi.
Due to their financial power and size, a number of MNCs have been able to exploit opportunities that have emerged as a result of a recently liberalised India. Due to “large and growing fiscal imbalances over the 1980s” (Bajpai, 1996) coupled with “political turmoil, high oil prices and fiscal profligacy” (The Economist, 2011), India suffered a serious financial crisis in 1991 (similar to the recession experienced in the UK recently) and the Indian government was forced to re-think and indeed radicalise policy in order to survive. In July of that year
Assess the problems they encountered.”
Abstract
Over the past decade, it has seemed like a wise strategic decision for many multi-national corporations (MNCs) to relocate their customer service centres or “call centres” to LEDCs such as India, with the view of cheaper labour and relaxed employment laws potentially being some of the incentives for such a decision. This essay will explore these reasons in great detail and also suggest explanations as to why a number of said companies ha ve recently returned to the UK after experiencing a number of problems. This work will conclude to recap on findings and offer alternatives that MNCs may wish to investigate further. The Benefits of Offshoring
“Each call is being monitored, each call is being recorded. And they randomly pick up any call and then monitor the call, see the work you 're doing.” (Mirchandani, 2003)
Control. A single word that I will argue as being the main reason for the offshoring of thousands of UK based multi-national jobs to India. Whether it is the constant monitoring of agents work, as shown in the words of one Indian worker presented above, or whether it is the control of costs and customer service that UK managers worry about on a day to day basis, control has a vital part to play in any decision to set up operations in cities such as
Mumbai or Delhi.
Due to their financial power and size, a number of MNCs have been able to exploit opportunities that have emerged as a result of a recently liberalised India. Due to “large and growing fiscal imbalances over the 1980s” (Bajpai, 1996) coupled with “political turmoil, high oil prices and fiscal profligacy” (The Economist, 2011), India suffered a serious financial crisis in 1991 (similar to the recession experienced in the UK recently) and the Indian government was forced to re-think and indeed radicalise policy in order to survive. In July of that year
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