The largest insurance company in the UK is planning on moving their call center operations to India.
Research shows that 28 firms have outsourced more than 50000 jobs over the past two years.
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There are still many major businesses that are planning on offshore outsourcing.
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It is predicted that offshore outsourcing of call center work is expected to grow by 25% over the next five years.
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Many businesses consider offshore outsourcing for one major reason. This is cost saving.
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It is also said that Indian call centers do a better job of providing good customer service then the British staff. This is due to a higher motivation to do well.
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Previously offshore outsourcing revolved mainly around customer service jobs, however, now many businesses are moving towards outsourcing more advanced jobs.
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PART 2.
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The article discusses many firms which have got plans for offshore outsourcing. Any changes that occur in businesses always have advantages and disadvantages. The main advantage that is experienced by offshore outsourcing is a cost saving. In some cases the cost saving can be up to 80%. Another significant advantage is if customer service jobs are eliminated from the home country, the company can concentrate on improving the prime business functions. Also, with India being a country which has excellent technological skills, a company such as Norwich Union may be able to gain access to state of the art IT. Another advantage is that offshore outsourcing enables companies to eliminate problems related to workers unions.
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However, there are also many disadvantages that can be experienced through offshore outsourcing. Firstly, firms may feel a loss of control. With many jobs being outsourced to another country, the company may feel that with employees, the company is also passing on a certain degree of control over the business. Also, when making any decisions regarding the business, consideration will have to be taken for the country where jobs have been outsourced to.
