Outsourcing occurs when a job is given to a company overseas that was formerly done at home. / China, Malaysia, Singapore, Australia, South Africa and Vietnam are all destinations for off shoring.
There are two types of off shoring:
Bank office (accounting, IT systems and human resources)
Business Processes (call centres) / In 2003, 8000 jobs were moved from the UK to India.
The value of outsourcing to India in 2007 was £24 billion. IT and business process outsourcing now account for 5.4% of India’s GDP. / India became independent from the British Empire in 1947
India's GDP is US$1.237 trillion, which makes it the twelfth-largest economy in the world. / India's per capita income US$1,068 is ranked 128th in the world. In the late 2000s, India's economic growth has averaged 7½% a year, which will double the average income in a decade.
Although the Indian economy has grown steadily over the last two decades its growth has been uneven between rural and urban areas and between different social groups. / In 2008 Indian salaries climbed by an average 15%, the fastest rate of growth worldwide
IN 2004 Tesco moved 420 jobs to India / English language skills are good in India
Sarah has worked for Tesco for 10 years in Tesco finance dealing with customer calls. / Shameela graduated from the University of Mumbai two years ago with a degree in management.
Shameela is expected to work long, unsociable hours in the call centre. / Most employees in the UK will be offered an alternative job in Tescos but some will not.
Sarah works for Tesco in Dundee which has a high rate of unemployment. / By 2008; 200,000 jobs had been outsourced from the UK.
Shameela often receives calls from angry customers. / Sarah is worried that she may not be able to afford to pay her rent next month.
Costs of a call centre worker in the UK are £18 – 20, 000 per year compared to £2500 per year in India. / Mumbai was formally known as Bombay and is the largest city in India.
Call centre staff have been given lessons to make their accents sound more English and have been learning about the country they are working for.