Final answer:
Asia, with its substantial labor force and lower employment costs, has become a primary destination for the outsourcing of skill sets such as call center work, IT support, and other service jobs. Countries such as the Philippines are particularly attractive due to their political stability, English proficiency, and educated workforce. Outsourcing to Asia helps companies reduce operational costs and remain globally competitive.
Step-by-step explanation:
With more than half of the world's labor force located in Asia and the Pacific, there has been a significant shift towards outsourcing various skill set jobs from Western countries to Asian regions. This trend is driven by the presence of a large labor pool, lower employment costs, and sufficient infrastructure for business process outsourcing (BPO). Moreover, political stability in countries like the Philippines has made them attractive destinations for global corporations looking to outsource information and technology service jobs.
Work that can be handled over the Internet or telephone, such as call centers, IT support, and other back-office functions, is commonly outsourced. For instance, companies like America Online and Citibank have shifted such operations to the Philippines, taking advantage of the English proficiency and competitive wages there. Thus, regions in Asia with high-speed communication links, proficiency in English, and educated workforces are particularly attractive for outsourcing.
From a global economic perspective, outsourcing allows companies to stay competitive by reducing operational costs. However, it has implications for the labor markets in both the countries losing and gaining jobs. Countries like India and the Philippines have benefitted from this shift by accommodating BPO activity, which relies heavily on their skilled labor base and English-language capabilities.