1.5.2 Call India

To what extent should globalization shape identity?


Telemarketers: When was the last time you had to call for phone support for a product you bought? Although the person you talked to might have sounded as if he or she was just next door, very likely your call connected you to someone in India. Many Canadian, American and European businesses are using call centres in India to take care of many of their business needs. Loan processing, medical transcriptions, payroll accounts, collections, e-learning, and data entry are all functions of Indian call centres.

outsourcing
the business practice of moving the production of a good or service from a central plant or facility in the home country to another location; also called contracting out

It often involves transferring jobs to another country, either by hiring local subcontractors or building facilities in areas where labour is inexpensive.

For example, outsourcing occurs when Ford and GM close automobile parts factories in Canada or the United States and open new plants in Mexico, or when Walmart hires a Chinese firm to make all its bicycles, or Nike contracts its clothing from a garment factory in Bangladesh.
Outsourcing is a growth area in which many aspects of business happen in other countries. Outsourcing provides opportunities and challenges for the people of India, and it has serious effects on their identities and communities.

Business process outsourcing is a direct result of globalization and technology. Call centres in India handle calls from Europe and North America. Why India? India has a large, educated workforce who can speak English largely because of
imperialism
Domination by one or more countries over others in order to gain power and wealth.

It can be take place through the use of weapons, economic control or political power by a powerful nation. Economic imperialism is when a powerful nation or a powerful corporation takes control of another country in order to make money for itself.

Cultural imperialism takes place when a dominant culture overpowers another culture.
imperialism that you will learn about in the next two units.

If a task can be completed using technology, likely it is being done in Asia where wages are lower than in North America or Europe. This includes almost anything that computer software can do, including accounting, Internet service, and telephone service. Some call centre corporations are huge, employing thousands of people.

A company may choose to outsource aspects of its business for several reasons:

  • Lower wages for workers
  • Access to workers with specialized skills
  • Access to workers who can speak many languages
  • Excellent telecommunications networks
  • Need for 24/7 customer service
  • Standardized business software
  • Allows company to focus on core business
  • Global corporations require global call centres

Courtesy N. Paniker, Accel-India

Effect on India: India has thousands of well-educated workers, many of whom are trained in technology. Because India is a poor nation, wages even for the most educated people are low, especially when compared to western wages. The average software engineer in India made $9 200 Canadian in 2019 while the average North American software engineer made $73 000. Over one million Indians work in the tech sector now, and this continues to grow.

Job gain: The tech industry means more jobs for Indian people. At a monthly salary of $700 to $800 Canadian, the workers can buy good clothes, go to movies, and eat at restaurants-all things we take for granted in Canada. These were previously rare luxuries for even well-educated Indian citizens. Most Indians are poor farmers, working very hard for long hours with little income and few chances to get ahead.

Effect on other countries: Moving call centre jobs to India means a loss of jobs for people in North America and Europe. People who have lost their jobs need income and must be retrained in other careers. It also means the shareholders in these large multinational firms are making larger profits. Experts say that outsourcing has accounted for only 3% of job losses in the United States. Increased revenue from hiring less expensive workers means that corporations have more money to invest at home.

Acculturation: Call centres run according to Western business standards, which can be very different for the Indian people. For one thing, traditional Indian society has very specific roles for men and women. Men and women do not frequently work side by side, doing equal jobs for equal pay. Women who formerly expected their parents to arrange marriages for them now want to choose their own husbands. Men who are used to controlling the finances of their wives and daughters now must give up some of their power. This kind of
acculturation
How one culture changes when it is affected by another. As societies interact, they absorb some of the aspects of other cultures and change as a result. Individuals are acculturated when their roles and behaviour change due to the influence of another culture.
acculturation means the dominant culture in their communities is changing.

Reflect


What is the effect of globalization?

Outsourcing provides Indian workers with opportunities to work and make more money. It puts them in contact with people of many cultures where they experience new ideas. In addition, it changes their identity as they learn new languages and accents and adopt new values to fit their workplace.