Time for a Calypso

Implications: With the lead provided by India, several players are cutting into the call centre pie.Eventually business will move where operations are cheaper.

Analysis:  

It was about time it happened. India has started witnessing high attrition rates in the call centre industry. The criticism the call centre operators are facing has started having the necessary effect. With the Caribbean culture closer to the American plus not much of a time difference, there is room for lot of business moving out there. However, the rates have to be kept lower. With more job opportunities in these countries there will be lesser migration to USA. Moreover, Caribbean countries present an easy lifestyle and are a favourite holiday destination for many Americans including the Presidents. The call centre will give necessary boost to the economy.

More number of countries should actively pursue business outsourcing to provide employment opportunities and economic fillip to those countries. This will create a true picture of globalisation and dilute much of the criticism directed towards certain countries.

The initial purpose of moving call centre jobs to India was the cheaper labour costs. That move galvanised the Indian economy. With a huge population still untouched by globalisation the economy soared. Though there has been criticism of the jobs being sent out of developed  economies, there certainly have been flow-on benefits to those countries. What is sometimes forgotten in the hue and cry is the generation of jobs in other areas of the economy of that country by this business relationship. Some of the flow-on benefits have been :

1. Increasing trade between the countries. Creating more jobs and business opportunities in both countries.
2. Increasing tourism traffic to and fro India and those countries – USA, Britain, Australia etc. and consequent boost to local economies.
3. Due to increasing air travel, India is a major market for Boeing and Airbus. This contributes to increasing job opportunities to those economies.
4. Increasing cooperation in other areas of mutual benefit such as scientific research, research and development, etc.
5. India is a huge market for automobiles. And many of the world’s car manufacturers have base in India.

The benefits have been mutual. India’s economy is opening up and growing. There are immense possibilities for cooperation and opportunities in business with developed economies in areas such as infrastructure and financial services etc. Business outsourcing forms a small part of economic activity not counting IT services. There are various areas and avenues of cooperation. It's time the relations evolved to a different level.

When dealing with India there has always been an element of reciprocity and those countries that have sent business to India may have ended up as net beneficiaries. In fact many of the Indian firms are themselves outsourcing their business to other less costlier countries.

Meanwhile, any transfer of business to other countries which would help boost the local economy and provide employment opportunities to local populace and improve their standard of living should always be welcomed.