Indian Bpos- Waking Up the Philippines Opportunity Case...

I. Problems A. Macro- The major macro problems are surrounding the loss of the tax abatement in India as well as the weakening US dollar. Both of these issues make it incredibly expensive to do business in India compared to other locations like the Philippines. B. Micro- In India the transportation and infrastructure costs continue to hurt the bottom line. II. Causes- Tax abatement ended in 2009, transportation and infrastructure costs are not going away and other countries have more attractive incentives to bring in higher margins. III. Systems affected- The whole upswing in bringing BPOs into India has been affected, it is no longer that attractive to bring your business into India when you can make much more money in the†¦show more content†¦2) Referring to this chapter and this case, discuss the general trends in the globalization of human capital? Transferring business to other countries outside the US has become the trend because often times it is much cheaper and sometimes the service and skill set of the work force is better than at home. Most companies have to play on the global field in order to remain profitable and what better way than to hire and train employees from the country you are moving operations into. This hiring of local human capital can pay dividends and add instant credibility to your company and provide a smoother transition into said country. India cost per employee has risen which has shifted many companies to look to the Philippines where it is much cheaper to employ while still keeping a highly educated and skilled workforce. 3) What are the effects of the Indian government policies on the Indian BPO industry and on MNC decisions regarding locations for outsourcing jobs? The Indian government worked hard to introduce initiatives to attract new companies into India for BPO’s, but the economic downturn has made it more expensive to remain in India due to the declining dollar and rising rupee. Since the Indian government did not extend the tax abatements they currently gave to BPO companies, it just makes since to move operations to theShow MoreRelatedIndian Bpos- Waking Up the Philippines Opportunity1435 Words   |  6 PagesIndian BPOs- Waking up the Philippines Opportunity Analysis The Indian labor market has always been key in globalization, and has been attractive due to its low wages, and the scientific and managerial talent found in the country. The main issues faced in this case mostly stem from the loss of the tax abatement in India, in addition to the weakening US dollar. Due to these two issues, doing business in India versus other fruitful options like Philippines becomes very expensive. These are majorRead MoreStudy of Recruitment Process and E- Recruitment12119 Words   |  49 Pagesdeploying web-based tools for inviting and comparing resumes. The term e-recruitment means using information technology (IT) to speed up or enhance parts of the recruitment process. It ranges from the applicant interface for advertising vacancies and making job applications, to the back office processes, which allow a liaison between human resources (HR) and line managers to set up a talent pool or database of potential recruits. Many big and small organizations are using Internet as a source of recruitment