Final answer:
India, the Philippines, and China are recognized as the outsourcing hub and back-office of the Western world, making the correct answer 'All of the above'. Both India and the Philippines have established substantial BPO industries attributed to their skilled labor force and cost-effective wage structures. While China is also part of the outsourcing market, India and the Philippines are more widely acknowledged for such services.
Step-by-step explanation:
The regions known as the outsourcing hub and back-office of the Western world include India, the Philippines, and China; therefore, the correct answer is 4) All of the above. India has built a significant reputation as a global destination for business process outsourcing (BPO), especially given its large number of educated young people fluent in English who support industries ranging from IT to customer services. The Philippines, with its modest political stability and economic savings from lower wages for BPO jobs compared to the U.S., has attracted businesses like J.P. Morgan Chase & Co. and Citibank to set up back-offices in the country. China is also involved in the outsourcing market, providing similar services, even though it is not as prominently recognized as India and the Philippines in this sector.
Business Process Outsourcing in India
India's role as a back office target for global outsourcing is driven by the substantial outsourcing of information activities from the United States. The country's use of English as a lingua franca and its adequate skilled labor base are key attractions for firms in service work and computer programming.
The Philippines and Outsourcing
The Philippines has been successful in increasing its infrastructure to gain a larger share of the BPO market. The wages for BPO jobs here are considerably economic, being one-fifth of what is paid for the same jobs in the U.S., yet providing an income double the national average wage for Filipino employees.
Globalization and Outsourcing
Globalization has prompted companies worldwide to employ outsourcing and offshoring as major cost-saving options. This allows companies from developed nations to access cheaper labor markets while maintaining competitiveness in the global economy.