The loss of manufacturing overseas is not a problem because you can't export the lucrative services sector on which so much of the U.S. economy depends. Or can you? At least export AJC.
Special Report:
The Rush to Send Back-Office Business Overseas Part 1
Knowledge@Wharton presents a two-part special report examining the fast-growing phenomenon of business-process outsourcing. In the first part, we look at the pros and cons of business process outsourcing arrangements, examine some human resources issues, and present key findings from a Wharton research project led by professors Ravi Aron and Jitendra Singh. The second part, which will appear in our next edition, will explore management and financial issues in BPO transactions.
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The Case For, and Against, Shifting Back-office Operations Overseas
The World Bank, GE Capital and British Airways have something in common. Each organization has moved back-office operations from the West to the developing world. So far only a small proportion of back-office work has moved overseas. Advocates claim, however, that this is just the beginning.
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Case Study: Inside the Progeon-Greenpoint Mortgage Transaction
GreenPoint Mortgage has signed a five-year $30 million BPO deal with Progeon, a subsidiary of Infosys, an India-based IT services firm. GreenPoint estimates it will shave loan servicing costs by 20% to 50% as a result of this strategy.
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When Back-Office Work Moves Overseas, What Happens to Workers?
Advocates argue that when business process operations are outsourced to countries like India or the Philippines, U.S. employees who lose work may eventually find higher-skilled positions. Critics, however, dont buy that version of globalization. So far, just a few companies have outsourced back-office work overseas. But as that number increases, the debate will grow louder and angrier.
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Call-Center Workers Straddle Two Continents and Cultures
In the U.S., labor advocates debate whether business process outsourcing will lead to shrinking employment in the West. Meanwhile, in the developing world, call-center employees face their own challenges. Among the biggest is going through cultural training that can help tens of thousands of young people bridge cultures and continents. A report prepared in collaboration with Indian Management magazine offers glimpses into the lives of Mumbais call-center workers.
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In a Global Economy, Competition Among BPO Rivals Heats Up
Cross-border business process outsourcing is an emerging field in which India has moved forward aggressively. All around the world, however, countries now compete to offer BPO services to large multinational organizations. Knowledge@Wharton looks at a few countries and companies and the options they provide.
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Business Processes Are Moving from the West to Other Parts of the World
Ravi Aron, a professor of information and operations management at Wharton, has been working with Jitendra Singh, a Wharton professor of management, to study the strategic questions companies face as they seek to outsource tasks that were once thought to lie at the core of the firm the business processes. In an interview with Knowledge@Wharton, Aron discusses the theoretical and organizational challenges of cross-border business process outsourcing.
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