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Tuesday, November 08, 2005

Global Outsourcing: Okay or Outrageous?



The Weekly Gripe, an online British publication site that has forums, boards and articles on a wide variety of issues spanning the world on what people feel is wrong.Today's topic is why people feel why people feel outsourcing companies from the UK is wrong. .Comments made by African American scientist Philip Emeagwali on the "Brain Drain" taking place in Africa at the 2003 Pan African Conference held on October 23, 2004 in Elawi, Illinois, U.S. He sees global outsourcing sees it as a positive but feels that Africans should stay within the continent and work from there. He feels the millions of Africans leaving African countries for the western world is adversely affecting Africa by removing skilled workers and money that is instead going to the western world. Not Africa who so desperately needs the money even though he admits that there is much more oppurtunity outside of Africa.



He has lived in the U.S. for 17 years after moving from Nigeria. "A typical call center employee might be a housewife using a laptop computer and a cell phone to work from her home. As night settles and her children go to bed, she could place a phone call to Los Angeles, which is 10 hours behind her time zone. An American answers her call and she says, "Good morning, this is Zakiya." Using a standard, rehearsed script, she tries to sell an American product. Now that USA-to-Africa telephone calls are as low as 6 cents per minute, it is economically feasible for a telephone sales person to reside in Anglophone Africa while virtually employed in the United States, and - this is important - paying income taxes only to her country in Africa."

Emeagwali states that graduates emerging from teh universities of Africa, study in Africa before leaving behind the continent. Thus pumping more money into European and American companies. "A recent World Bank survey shows that African universities are exporting a large percentage of their graduating manpower to the United States. In a given year, the World Bank estimates that 70,000 skilled Africans immigrate to Europe and the United States. While these 70,000 skilled Africans are fleeing the continent in search of employment and decent wages, 100,000 skilled expatriates who are paid wages higher than the prevailing rate in Europe are hired to replace them." Emeagwali also said at the 2003 speech that he feels that it is now essential for competitive companies to moving there western workers to Third World countries simply to save on costs. "To remain competitive and profitable, companies will be forced to reduce costs by hiring five-dollars-an-hour computer programmers living in Third World countries and lay off expensive American programmers that demand $50 an hour."

A typical Indian call centre in Bangalore

This is where the red hot controversy lies, it costs less for a company such as Dell to hire a call centre technician in Bangalore than in New York City, who can still do the same job. They don't need to pay this technician nearly as much and in turn are saving on costs yet creating hundreds of thousands of jobs for India. This creates incredible oppurtunity for India, a country despite its business suffers greatly from poverty, starvation and serious labour problems. By western computer and customer services companies running offices there, they are contributing to the economy and providing solid spots for people who otherwise most likely would be out of a job. Dell just opened its third call centre in India.in March 2005 in Chandigarh providing jobs for 300 technicians. The brand new 180,000 square foot facility includes a gym, cafeteria and various areas for technicians to stretch their legs when not seated at their computer. Dell is at the pinnacle of global outsourcing employing 8,000 of its 53,000 person workforce in India,20% of the company accoring to chief excecutive Kevin Rollin. This is part of the strategy of the computer company adding over 2,000 new spots for workers at their India offices by the end of 2005. India currently has over 300,000 computer technician jobs from North American and European computer companies, with many more in customer service and other industries.

Computer, software and anti-virus companies are one of the largest employers for the countless call centres across India. In addition to India, considered the big four of outsourcing call centre countries include Thailand, China and the Philippines. These countries especially Thailand and the Philipines are much more into customer service centres, though they also have computer technicians. These call centres include telemarketing that has these employees actually promote European and North American products and services, though they are calling from Thailand for example. Again this is a method for the company to cut costs, let's say for example a Canadian company wants to promote a new IP (Internet Protocol) phone service, instead of hiring Canadians to promote it, they can have a Thai call centre do the calling. The heat of the controvery here is again though the Taiwainese operators are making much more than they would otherwise in other work in Thailand, they are getting paid less than they would in Canada. Despite the reasons coglomerates will say in speechs, reports and press releases this is without a doubt the main reason they are partaking in this practice.


Aside from the fact that operators and technician representatives across Asia are paid up to five times less than their North American and European counterparts doing the same job, this is only a fraction of the dark side of global outsourcing. A 2003 Trade Union survey in Scotland surveyed 382,00 call centre employees as well as BBC whose correspondant interviewed call centre employees in Bangalore. Thousands upon thousands of employees in these call centres are facing serious problems. They are literally hooked into their headsets and staring at their screen for up to 9 hours, sometimes only with short breaks. They suffer from serious wrist and hand problems from incredible amounts of typing and clicking. They often get mild and serious headaches from taking in so much radiation from their monitors. In order to staff the peak calling hours for Canadian, American & European clients, call centres must ensure they have enough technicans set to take calls. This means that working night shifts often becomes a serious routine, causing sleep deprivation. The tedioum of performing near identical processes and tasks to often grumpy people can be extremely exhausting and boring for many. Abuse is another major problem, as people resent that their are receiving support from those outside their country or continent and report having trouble comprehending their accents even though they are well trained and versed in mimicing western world accents. Call Centre abuse in India and elsewhere includes sexual, racial and derogatory comments from irate and insensitive callers is common. Many employees have had to under go physcological therapy or take frequent breaks.

Despite its downfalls, issues and unfair salaries global outsourcing is not only here to stay it is ever expanding with hundreds of Canadian, American and European companies joining in on the fold. Major computer, customer service, phone and other companies are creating centres across the world. The high point does include exceptional customer service that I so often receive from Dell Canada whose calls most often go into Bangalore. Sometimes I will get the Canadian or American call centre, and most often their technical support is not up to par with India's. India provides a solid and sincere customer service I find that you simply cannot find or if you do its rare whether in person or on the phone in Canada and the U.S. Our companies here you call make you go through a endless array of numbers, extensions and departments. Most often once you reach the so called right department someone says "Sorry that's not my department or problem" and gives you yet another extension to call. Those in India are friendly, courteous and are passionate in what they do despite the drawbacks that may be going through their mind. They love to know about Canada, tell me about India when we are waiting for a process to happen or the computer to restart. When I have a problem with the computer I know I am in good hands, great hands. I look forward to chatting with these friendly folk who truly make you feel special. Many Canadians and Americans are sick to death with the lackluster service we receive here, at least Asia is doing it right. Global outsourcing, do you believe its right or wrong?


Teague Neal blogged on 11:30 PM 0 comments


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Teague Neal
Oakville, Ontario
Canada

Toronto born Teague Neal has been published in The Oakville Beaver, The Tattoo Teen Newspaper, and online at www.ReadTheTattoo.com and He has been recognized by the Connecticut Society of Professional Journalists and the Suburban Newspaper Association. He runs his own blog at www.teaguenealsplw.blogspot.com that been featured online at Home Base Holidays, he is currently writing his first science fiction and mystery novel.



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