Q 1 How has the global economic down turn, Discussing in opening profile and throughout this chapter, impacted jobs outsourcing in the BPO industry?
Ans: 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 expanding trend.
Job outsourcing seemed to be the only viable option as global economic downturn had created many problems when it came to funding and financial institutions. There needed to be cut backs in order to keep things afloat and most companies would see that job outsourcing would solve at least one of the many problems involved in the economic downturn. The global economic downturn provided merges and many acquisitions for the BPO industry and helped to create certain flexibilities for some companies which helped with resource management. The main reason why the economic downturn has impacted on job outsourcing in a major way is because it is cost effective and helps companies concentrate on core areas. It also contributes to improvement in productivity.
Referringto chapter, The International Institute for labor has discussed in the opening profile “The reason behind the global economic downturn is the financial crisis which is hitting the world of work”. The credit crunch and collapse of stock markets are starting to effect firm’s investment decision for global market as well as workers incomes. American export and subprime mortgage mess caused the global economy to hit the brakes. Due to this reasons the industries has to force their work to outsource to reduce there working cost and but this way they can focus on some core factor in the industry. Due to reduced cost, companies have capacity to hire more employees