1.4 Case Studies: Individual and Cultural Identities


To what extent should globalization shape identity?

Effects on Cultures

In this section, you will consider the impact globalization has on individual and cultural identity. Globalization also has a profound effect on the local, national, and global economy. As it affects the economy of your community, it also affects you and your identity.

Whether you are aware of it or not, this impact is profound.

This section presents two case studies of globalization both abroad and at home.

Case Study: Call India


In our modern world we have many electronic devices that we use daily to keep us in touch with the world around us. Often we need to have technical support to keep our many devices working correctly and we call the "Help" lines provided by the manufacturing company. The person you talk to may sound like they are just next door or at the very least in the same country, but most likely your call has been routed to India.

Loan processing, payroll accounts, collections, and data entry are also functions of an Indian call centre.

Business process outsourcing provides opportunities and challenges for the people of India and has a profound effect  on their identity and their community. Business process outsourcing is a direct result of globalization. Call centres in India handle calls from Europe and North America.

At one time, India was the "crown jewel" of British imperialism. As a result, there is a large work force with command of the English language and a groundwork of a school system and advanced technology.

Business process outsourcing is an ever-growing part of business practice for large corporations. Improvements in telecommunications have made the practice feasible. A company's business is outsourced for many reasons.

  • lower wages for workers (this lowers the costs of a product)

  • access to workers with specialized skills

  • need for customer service 24 hours a day

  • access to workers who can speak many languages

  • global corporations require global call centres


As a result of this, tasks that can be done using technology will likely be done in Asia or Latin America where wages are lower. Included in this is almost anything to do with computer software, accounting, or Internet service. Consequentially some corporations are able to employ thousands of workers in their corporate structure.

India, a very populous country, has thousands of highly-educated workers, most of whom are well-trained in using technology. Moreover, because India is a relatively poor nation, the wage scale is low for skilled workers, especially in comparison to North American workers. Recent figures show that more than a million Indians are employed in the technology sector of business. The impact of outsourcing in India has been tremendous. Not only are the technology sector employees better off, but also the spin-off business created by their economic growth is being felt by workers in other industries. Clothing industries and fast food areas have had increased sales and profitability.

The shift of the call centre industry to places like India has meant the loss of jobs in North America. With this shift, the people who were traditionally employed in this type of work now require more assistance and extensive retraining.


On the other hand, shareholders in these companies are experiencing greater profits for their investments. While this might seem like a rather bleak trend, in actuality, there has only been a small loss of jobs in Canada due to the shift in call center employment. The increased revenue that corporations are experiencing is more a result of lower salaries. These increased profits should allow corporations to invest more in their home marketplaces.

Nonetheless, outsourcing does mean more jobs for people in India. The information technology/business processing outsourcing industry in India now accounts for 9.3% of India's gross domestic product, and 3.7 million people are employed in this industry (Ministry of Electronics & Information Technology, 2017).

Indian call centres have become so lucrative that they are employing Europeans and North Americans who are attracted to the country by job opportunity and the chance for adventure. Contact between these new arrivals and local citizens teaches both cultures about each other. As a result of this cultural contact a form of acculturation has happened.

Call centres were established using current Western business practices, which can be different than the local practices. For example, in Indian society the roles of men and women are very specific. Rarely would you find men and women working side-by-side in traditional Indian societies. However, as a result of Western influences, women who traditionally had marriages arranged by their parents now want to take more control over their own futures. On the other hand, men who have always controlled the finances and future of their wives and daughters are having to relinquish some of their power. As a result, the traditional dominant power in the community is changing.

Fun Fact

Call centre employees receive intensive training in the language and accent of the area to which they place most of their calls. They can learn to speak with a Midwest accent or a Texas drawl. They also give themselves Western sounding names, commonly "Susan" or "Bob" or even something more creative such as "Dustin Collin"!