Introduction
Call center offshore sourcing can be explained as acquiring external service providers who are located outside the US with the objective of operating and managing a company's call center. Also, the external service provider often deals with hiring and training the call center agents, managing the daily call center operations, and controlling the call center software. Corporates may outsource a particular portion of their call centers operations such as engineering, support, market research, marketing or sales. They can also outsource the entire call center. After a company decides to outsource a segment or their entire call center operations, they are required to have a hands-off approach regarding the operations and trust that the overseas call center will take the reins ( Lee, 2015) . The research paper will evaluate the advantages and disadvantages of having overseas call centers in China, India, Philippines, and Canada.
Purpose and Scope
Over the past decade, overseas call centers gained significant popularity after some of the main companies decided to implement overseas call centers claiming that it reduced their expenditure. The research paper will analyze the pros and cons of having overseas call centers in the four countries in comparison to the US.
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Assumptions
The research paper will assume that the information in the document provided and journals offer accurate and current information regarding the GP per head, operating costs, cost of living, and competitiveness.
Methods
The research paper will depend on information provided in the document provided during the course and scholarly articles such as journals and books. The researchers will evaluate the information provided in the journal articles and then offer qualitative discussions and arguments.
Limitations
The main limitation is that the research paper will depend on information offered in secondary sources of information and may offer a certain level of bias or prejudice ( Taylor, 2017) .
Criteria
The research paper will evaluate journals and articles and then give a qualitative report according to the thesis statement.
China
The country has a population of 1.275 billion people. Its operating cost is 9. The percentage under 15 is 25 while the percentage in tertiary education is 25%. Its world rank according to competitiveness is 31 while its cost of living is 96. Also, its GP per head is $860. The country has a very high population which will offer a wide pool of talent and cheap labor.
Analysis
Furthermore, the country is highly competitive and is only rivaled by Canada which ranks eight regarding their global competitiveness. Furthermore, it has low operating costs that may be a huge benefit for companies wishing to invest in China especially in overseas call centers. It has a lower cost of living than the US, but its cost of living is higher than in Canada, India, China, and the Philippines.
Advantages
The labor costs in China are much lower in comparison to the US and may result in savings of more than 50%. Due to the rapid growth in China, they will offer the necessary infrastructure to set up high-quality call centers in the country. Also, due to the high population, the call centers will have a wide pool of skilled personnel that they can hire ( Lee, 2015) . It will eliminate the staffing issues and save the American company time and money.
Besides, they will provide 24/7 customer service at a fraction of the normal fee because of the appreciating US dollar against the local currency that was recently devalued. Also, they can easily manage overflow call volume because of the available labor. Such a move will be an essential solution to a costly issue. Also, outsourcing will increase the business continuity. When the call center services have employees dedicated to the cause, has 100% uptime, and servers in multiple locations, companies, will be confident in the abilities to meet their clients' needs ( Stevens, 2014) .
Disadvantages
One of the main demerits of setting up an overseas call center in China is the cultural and linguistic barriers. Mandarin is their main language, and a limited segment of the population speaks fluent English. They may lack the necessary communication skills, cultural knowledge, and fluency to offer quality services. Due to the linguistic and cultural barriers, there may be decreased customer satisfaction. Most clients prefer customer service agents who know American English and slang. If the agent does not understand the needs of the client, there will be decreased customer satisfaction. Also, the may be decreased control over some business functions ( Taylor, 2017) . When a company decides to outsource their call center operations to an overseas call center, they are forced to place some sensitive information in a stranger's hands. Besides, the recent cases regarding copyright infringement make most companies in the US reluctant to outsource their call center operations to China.
Due to the communication barriers, some of the call center agents may lack company knowledge. They may be unfamiliar with American culture and company values, culture, and practices. Hence, they may not offer the level of service that is equal or better than company standards or that reflects the firm’s culture. Also, they may not be fully dedicated to the customers or the company ( Stevens, 2014) . Also, the focus of the call agents may be divided. China is one of the overseas call centers for different countries, and the call center agents' focus will work for various countries while receiving multiple calls from different clients. Ultimately, they will not be entirely dedicated or devoted to the company.
India
It has a population of about 1.009 billion people. Its operating cost is eight. The percentage under 15 is 34%, and the percentage of tertiary education is 7%. It has a global ranking of 42 regarding competitiveness. Its cost of living is 39 and has a GP per head of $450.
Analysis
It has a high population that is only rivaled by China. The number of people in tertiary education is higher than the percentage in China, but it is lower than in the Philippines with 28% and Canada with 58%. It has the lowest GP per head in comparison to Canada, China, Philippines, and India. Moreover, it has the lowest operating cost at eight in comparison to the other countries. Also, it has the lowest cost of living. However, it has the lowest level of competitiveness among the four countries.
Advantages
About half of the top ten overseas call centers outsourcing destinations are in Asia. Moreover, India has the biggest share of the companies that desire to outsource their call centers. It is expected that the level of growth in the industry will rise exponentially over the next decade. Also, India has a wide pool of talent because of their high population. The country provides skilled call center professionals who will offer quality services at half the price or even less. Due to their rapid advancement in technology, they utilize the best infrastructure, technology, and software ( Forman, Thelen, & Shapiro, 2015) . Therefore, outsourcing to India will be a good option because of the quality services. Also, the qualified call center agents are flexible. Outsourcing the call center needs will allow the company to be dynamic according to the changing customer needs. Furthermore, if the company decides to expand to new regions, India has readily available employees who will address the changing needs ( Xia, Chen, Jayaraman, & Munson, 2015) .
Also, unlike China where most people do not speak English, the majority of the Indian population especially the call center professionals speak English. Furthermore, they also have a wide pool of employees who speak other foreign languages such as Spanish, French, German, and others. Due to the growing number of professional with technical talent, India becomes one of the ideal locations that companies may outsource their call center operations. Also, India has advanced satellite-based telecommunication networks that will facilitate high-speed movement of data and voice from different parts of the world ( Stevens, 2014) . Furthermore, the call center companies in India utilize interactive voice response systems and computer telephony integration that allow them to offer quality services at reduced costs for various multinational companies. Besides, the Indian government is highly supportive of the country’s IT industry and offers incentives to companies that desire to outsource some of their services to India.
Disadvantages
Because India is becoming one of the most preferred call center destinations in the world, there have been rising costs. The salaries of employees working in the call center companies have been rising by about ten percent over the past decade. Ultimately, if the trend continues, most of the companies may shift their business to call center operations to other low-cost locations such as the Philippines. Also, most call center agents may have strong accents and singsong intonation due to the local languages especially Tamil and Hindi ( Okada, 2016) . Also, some of the phrases in Indian English may appear quite wrong in American English. The linguistic and cultural barriers may affect the level of customer satisfaction. Some of the call center agents may lack proper communication skills, cultural knowledge, and fluency to provide quality services. The call center companies in India should improve their cultural knowledge so that it can boost the competitiveness.
Philippines
The country has a population of about 76 million. It is ranked 40 on the global competitiveness index. The percentage under 15 is about 38 percent, and the percentage in tertiary education is 28%. The cost of living is 42, and the GP per head is $990.
Analysis
The country has a lower population than China and India but has a higher population than Canada. It has the highest percentage under 15 in comparison to the other three countries. The percentage in tertiary education is higher than that of China and India but is lower than that of Canada. Its GP per head is higher than that of China and India but is lower than that of Canada.it has the second lowest cost of living in comparison to Canada, India, and China. It is more competitive than India but less competitive than China and Canada.
Advantages
The call centers in the Philippines offer incessant support. Big corporates or multinationals address the needs of various customers globally. Furthermore, they should offer continuous support to their diverse clients. Due to the availability of a large number of people who have tertiary education, the call centers provide continuous support to the American companies ( Xia, Chen, Jayaraman, & Munson, 2015) . Despite the different time zones, they still provide round the clock services. Furthermore, it allows the clients to develop trust in the service provider because they are readily available ( Okada, 2016) . Outsourcing call centers to the Philippines is a great opportunity for American companies to offer quality services at reduced costs. The companies will not only save on infrastructure and operational costs, but they will avoid the expenditures associated with training new employees. Most of the outsourcing companies have developed specialized services at economical prices for their clients.
Also, a large segment of the Philippine population speaks fluent English that is far much closer to American English than Indian English. Most clients in the US would prefer speaking with call center agents with minimal accents or English that is closer to American English. Furthermore, most young people in the Philippine have a better knowledge of American culture in comparison to India and China ( Taylor, 2017) . Furthermore, they have a wide pool of young people willing to work in the industry at lower wages. Also, there is no age limit for employees in the call center companies as long as they speak fluent English ( Forman, Thelen, & Shapiro, 2015) . Besides, they offer specialized services by ensuring their employees acquire a proper knowledge of the companies they are clients and companies they serve. Furthermore, it allows the companies to easily manage overflow call volume because they have a team of specialized employees.
Disadvantages
One of the key concerns regarding the call centers in the Philippines is security and privacy. The overseas call centers may not be subject to similar and efficient background agents that are common with US-based call center agents. Therefore, sensitive or confidential information in the Philippines may be less secure than with US-based agents who often have a strict background check. Also, there may be lack of communication and collaboration between department and the overseas call center agents. Since the call centers are located overseas, there may be limited communication between the companies and the call center agents ( Boussebaa, Sinha, & Gabriel, 2014) . Therefore, it may reduce the level of customer satisfaction. Besides, there may be hidden costs that are often overlooked. Some of the hidden costs include the cost of re-acquiring some of the lost clients, unforeseen legal issues, losing clients due to substandard service, and hiring lawyers who are well qualified in international law may affect the companies’ financial base.
Canada
It has a population of 31 million people. The percentage under 15 is 20%. On the other hand, the percentage in tertiary education is 58% while its operating cost is 46. Its global ranking on competitiveness is 8. Its cost of living is 73 while its GP per head is $22370.
Analysis
It has the lowest population in comparison to the Philippines, China, and India. It has the lowest percentage under 15. However, it has the highest percentage of tertiary education at 58%. Therefore, Canada has a population that is highly skilled and qualified in comparison to China, India, and the Philippines. It has the highest GP per head at $22370 while the other three countries have a GP per head of less than $1000. It has a lower cost of living than China but a higher cost of living than India and the Philippines. Besides, it is more competitive than the other the companies. However, it has the highest operating costs.
Advantages
It has a qualified pool of professionals who will offer world-class services. Due to its proximity to the US, the call centers will be more accessible. Most of the people in Canada have cultural knowledge of the US and English is their native language in comparison to the other three countries where English is a second language. They have a shared culture that allows the call center agents to blend in with the American population. Canada offers excellent customer service, and they call closely identify with US clients ( Boussebaa, Sinha, & Gabriel, 2014) . Furthermore, due to the proximity, American companies will have enhanced monitoring abilities. Contracting the client support to overseas call center operations in Canada will facilitate close monitoring of diverse activities in the company. Therefore, a close watch and improved monitoring abilities will allow US companies to focus on the core business responsibilities.
Disadvantages
The main disadvantage is that outsourcing call centers to Canada will have minimal savings because of the high operating costs. Furthermore, they have a high GP per head.
Evaluation of the Four Options
The main objective of outsourcing call centers is reducing costs. Therefore, Canada and China are not the best options because of the high living standards and operating costs. Also, China would not be a good option because of the cultural and lingual barriers. Furthermore, China poses one of the key security and privacy concerns. India and Philippines would both be good options for an overseas call center. However, most employees in Philippine call centers have an accent that is closer to the American accent in comparison to Indian English. Research indicates that English speaking nation would rather pay a higher fee for dialects that are closer to American English. The Philippines may have higher operation costs and barriers to entry, but the disadvantages are offset by employee training that bridges the cultural differences ( Okada, 2016) . Recently, the Philippines overtook India as the main overseas call center location for English speaking nations. Therefore, Philippines would be the best option in comparison to Canada, India, and China.
Conclusion
The research paper evaluates the advantages and disadvantages of having overseas call centers in China, India, Philippines, and Canada. Call center offshore sourcing can be explained as acquiring external service providers who are located outside the US with the objective of operating and managing a company’s call center. Corporates may outsource a particular portion of their call center operations such as engineering, support, market research, marketing or sales ( Forman, Thelen, & Shapiro, 2015) . They can also outsource the entire call center. The research paper assumes that the information in the document provided and journals offer accurate and current information regarding the GP per head, operating costs, cost of living, and competitiveness. The main limitation is that the research paper will depend on information offered in secondary sources of information and may offer a certain level of bias or prejudice.
Offshore outsourcing provides various competitive advantages regarding profits, cost reduction, and increased productivity by delegating some of the non-core activities to third-party contractors. Over the past decade, the US has utilized geographical location advantages to enhance productivity through lower costs, reduced trade restrictions, availability of resources, and a larger pool of skilled labor. Furthermore, the time zone difference and flexible labor laws in some countries allow employees to work in various shifts. The paper evaluated the advantages and disadvantages of setting up overseas call centers in Canada, China, Philippines, and India. According to the analysis, Philippines would be the best option. Canada and China are not the best options because of the high living standards and operating costs. Also, China would not be a good option because of the cultural and lingual barriers ( Boussebaa, Sinha, & Gabriel, 2014) . Furthermore, China poses one of the key security and privacy concerns. Ultimately, establishing overseas call centers offer a significant chance to minimize expenditure, but it should not compromise quality services.
References
Boussebaa, M., Sinha, S., & Gabriel, Y. (2014). Englishization in offshore call centers: A postcolonial perspective. Journal of International Business Studies , 45 (9), 1152-1169.
Forman, A. M., Thelen, S., & Shapiro, T. (2015). Domestic versus offshore service providers: The impact of cost, time, and quality sacrifices on consumer choice. Journal of Service Management , 26 (4), 608-624.
Lee, D. (2015). The Philippines has become the call-center capital of the world. Los Angeles Times , 2 .
Okada, A. (2016). Small firms in the Indian software clusters: building global competitiveness. Ashgate Economic Geography Series , 85.
Stevens, A. J. (2014). Call centers and the global division of labor: A political economy of post-industrial employment and union organizing (Vol. 120). Routledge.
Taylor, P. (2017). The Globalization of Service Work: Analysing the 12 Transnational Call Centre Value Chain. Working life: Renewing labor process analysis , 244.
Xia, Y., Chen, B., Jayaraman, V., & Munson, C. L. (2015). Competition and market segmentation of the call center service supply chain. European Journal of Operational Research , 247 (2), 504-514.
