Call Center Jobs Are Increasingly Moving to India

The growth of the call center industry has received considerable attention for the past years. The trend is basically to outsource this service to countries where labour costs less but the quality is up to par with those of Western countries. The India and Philippines are two of the countries mostly preferred when outsourcing call center services. Both countries speak good English as they were both former colonies of English speaking countries such as the United States and Great Britain respectively. But is labour cost the only reason why organizations looking for outsourcing to developing countries? (1975) theory of transaction cost analysis can be the conceptual basis for outsourcing. It combines economic theory with management theory to determine the best type of relationship a firm should develop in the marketplace ( 1975). This basically strengthens the purchasing discipline that uses an analysis of the factors which determine the internal and external boundaries of the firm. The principle of (1975) TCA is that the properties of a transaction determine what constitute the efficient governance structure - market, hierarchy or alliance. (1975) stated that factors that produce transactional difficulties include: bounded rationality; opportunism; small numbers bargaining; and information impactedness.

Aside from the main factors, the issue of costs also plays a relevant importance as both parties tend to have the same objective of gaining advantages instead of losing it. (1985) further stated that the previously mentioned transaction difficulties increase along with associated costs when transactions are characterized by factors such as: asset specificity, which are transactions that require high investments which are specific to the requirements of a particular exchange relationship; uncertainty, or in other terms, ambiguity as to transaction definition and performance; and Infrequency, which means transactions which are seldom undertaken. All in all, the central theme of transaction costs theory is that the properties of the transaction determine the governance structure. (1985) argues that the decision will always be made in relation to the scope for cost reduction and the importance of asset specificity. Therefore, the company should outsource activities if to carry them out internally would require excessive investment to get the lowest unit cost.

More and more global companies are choosing India as right outsourcing partner today due to number of reasons, such as, cost-effective services, increased efficiency, increased productivity, shared risks, reduced operating costs, increased quality and better services. India has a large pool of high quality English speaking agents who can handle you inbound-outbound calls very effectively and keep you connected with your customer for long run .