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Globalisation Coursework - With Natwest's New Advert will the Decision to Not Move Call Centers and Stay primarily based in the UK be a benefit or a loss to the company?

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Introduction

Globalisation Coursework - With Natwest's New Advert will the Decision to Not Move Call Centers and Stay primarily based in the UK be a benefit or a loss to the company? There has been much debate over the subject of banks moving their jobs from call centers in the UK to new Call Centers in other mainly eastern countries. The prospect of offshoring is not new to companies but there is always a large debate on whether it can lead to good or bad in the long run, with companies taking up positions on both sides of the argument. Offshoring can sometimes be labelled as outsourcing, but in fact the two are very different. Outsourcing (or BPO - business process outsourcing) has been the national solution, contracting the administration of a company to a third party, frequently transferring staff and systems in the process. The outsourcer can generate savings through more efficient processes, management and economies of scale if the business is consolidated with other similar processes from similar businesses. Offshoring is the permanent or long-term relocation of operations to low-cost countries such as India. Other countries that have been used for offshoring recently are South Africa, China and the Philippines as well as Eastern Europe. The main advantages are lower operational costs through relatively low local wages, good availability of well-qualified staff, and (sometimes) ...read more.

Middle

From this source (7) it shows that Indian employees are gaining little in comparison to UK employees and that it seems as if the companies offshoring their services are exploiting the people. This is not the case as the researchers who published this source also stated that these employees are actually earning more than most other jobs offered in that country at that specific age and qualified status. However in my independent questionnaire my results gathered showed that a staggering 58% of people believe that the companies are doing this as they can get away with paying cheaper wages, and the other 42% believed that companies offshored work as they could increase their profits (8). This shows that people then don't know that companies moving to eastern countries do pay good wages relatively. So with all this evidence pointing to mass savings through lower wages and other expenditures why is it that Natwest has decided to stay in the UK? Well one other reason for this is that other independent research has shown that although India graduates can be just as or even more productive than their UK counterparts, callers are more likely to call back if they are calling an Indian call center. This is what is called First-call resolution, and the levels of this resolution range from 60% in India to 87% in the UK meaning that 27% more calls made to UK center are resolved first time without he caller having to call back (9). ...read more.

Conclusion

With this large percentage wanting this option there must be a negative feeling when calling an offshore location and it can generally just make people fell cheery talking to a British employee. However this has been taken on board by call centers now and there are beginning to train their staff in British events such at the weather, Coronation Street and even times of major football matches (15). But this luxury training can also begin to equal out more costs that the company may have saved, and this is why I believe that yes it would be a loss to the company of Natwest if they did choose to move out of England. 1 - Article in "The UK Contact Center Industry: A Study" (DTI) 2 - Article in "The UK Contact Center Industry: A Study" (DTI) 3 - Evening News (Alliance & Leicester) 4 - My Questionnaire 5 - BBC News 6 - Contact Babel 7 - Contact Babel 8 - My Questionnaire 9 - Article in "The UK Contact Center Industry: A Study" 10 - Evening News 11 - My Questionnaire 12 - Article in "The UK Contact Center Industry: A Study" 13 - Article in "The UK Contact Center Industry: A Study" (DTI) 14 - Article in "The UK Contact Center Industry: A Study" (DTI) 15 - Watchdog: Bosses claim staff are second best (Evening Mail) ...read more.

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