Question

Back-office services such as Internet services, call-in centers and processing centers should be located where?

1. Close to employee groups and other important resources
2. Close to the customers
3. Close to the sales force
4. All of the above

Answer 1

Back-office services should be located in countries like India and the Philippines where there is an educated, English-speaking workforce, low employment costs, and the necessary infrastructure for high-speed communications.

Step-by-step explanation:

Back-office services such as Internet services, call-in centers, and processing centers should ideally be located in regions where several critical factors converge: the presence of a large pool of educated, English-speaking young people, competitive labour costs, political stability, and high-speed communication infrastructure.

India and the Philippines are prime examples of countries that have become major destinations for such Business Process Outsourcing (BPO) activities. These countries offer the combined advantages of a skilled workforce, lower wages compared to developed nations, and widespread use of the English language - traits that contribute significantly to their attractiveness for global corporations seeking cost-effective, yet proficient back-office operations.

The economic rationale for outsourcing to these countries is compelling, as companies can maintain competitive edge in the global market by reducing operation costs. Simultaneously, the host countries benefit from job creation and economic development, illustrating the complex dynamics of globalization and economic interdependence.