Determinants of Offshore Outsourcing Locations – A Comparison on Voice Based Jobs in India and Philippines

DOI
10.15415/jtmge.2017.81002

AUTHORS

Subhashish Mitra, Amit Mittal and Pawan Kumar Chand

ABSTRACT

Present study like to examine the variables that are significant, in the selection of offshore outsourcing locations for the voice based jobs in India and Philippines. The study has statistically tested human resources factors, finance factors, national level factors, communication, language, culture, client and service provider relationship, service delivery, organizations credentials and regulatory environment. The study has used descriptive research design, survey questionnaire method and deliberative purposive sampling techniques on the total sample size of 178 top and middle level employees of BPOs and Call centres. Data were analyzed using structure equation modeling, multiple regression, weighted least square method and Path analysis. Results of the study shows, overall affects of above discussed factor variables on the selection of location as Philippines are more than choosing India as preference of location for voice based jobs.

KEYWORDS

BPOs, Call centres, India and Philippines.

REFERENCES

  • Athreye, S. (2005). The Indian software industry, in Arora and Gambardella (ed.), From Underdogs to Tigers, Oxford University Press: Oxford. http://doi.org/10.3386/w16167.
  • Babu, R (2004).Cyber Coolies in BPO: Insecurities and Vulnerabilities of Non Standard Work, Economic and Political Weekly, Vol. 39, No. 5, pp. 492–497.
  • Bagozzi, R. (1980). Causal models in marketing. New York: Wiley. http://doi.org/10.1002/ 9781118785317.weom090037
  • Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, 107, 238-246.
  • Bhatnaga, R., & Amrik, S. S. (2005). Supply chain competitiveness: Measuring the impact of location factors, uncertainty and manufacturing practices. Technovation, 25, 443–456. http://doi.org/10.1016/j.technovation.2003.09.012.
  • Budhwar, P., Varma, A., Singh, V. & Dhar, R. (2006). HRM Systems of Indian Call Centers: An Exploratory Study, International Journal of Human Resource Management, 17 (5): 881- 97. http://dx.doi.org/10.1080/09585190600640976.
  • Cheon, M.J., Grover, V., Teng, J.T.C.,(1995). Theoretical perspective on the outsourcing of information systems. Journal of Technology Information10, 209–219. http://dx.doi. org/10.1057/jit.1995.25.
  • Chong, A. Y. L., Chan, F. T. S., Ooi, K. B, & Sim, J. J. (2011). Can Malaysian firms improve organizational/innovation performance via SCM? Industrial Management & Data Systems, 111(3), 410-431. http://dx.doi.org/10.1108/02635571111118288.
  • Chordas, L. (2003). Global Outsourcing: Eyes on India. BEST’s Review, 2003(May1)98-103.
  • Currie, W.L (2000). The supply-side of IT outsourcing: the trend towards mergers, acquisitions and joint ventures. International Journal of Physical Distribution and Logistics Management. 38(4), 238-254. http://dx.doi.org/10.1108/09600030010325993.
  • D’Cruz, P.& Noronha, E.(2008). Doing Emotional Labor: The Experiences of Indian Call Center Agents, Global Business Review 9(1):131 -47. http://dx.doi. org/10.1177/097215090700900109.
  • David Ricardo(2006) .Def. 1. WordNet Search. Princeton U. 7 Nov. 2006 .
  • Dossani, R., & A. Manwani. (2005). Agilent’s supply chain: A locational analysis of its Indian operations. Paper presented at the Stanford University Conference on the Globalization of Services (June 17).
  • Farrell, D., (2006). Smarter Offshoring. Havard Business Review, 84, 6, 84-92.
  • Fornell, C., Larcker, D.F.(1981). Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research 18 (1), 39-50. http:// dx.doi.org/10.2307/3151312.
  • Friedman T.L (2004).The Great Indian Dream, The New York Times, March 11, 2004, pg. A29.
  • Gerbing, D.W., and J.C. Anderson. (1988). An Updated Paradigm for Scale Development Incorporating Unidimensionality and its Assessment, Journal of Marketing Research, 25(2): 186-192. http://dx.doi.org/10.2307/3172650.
  • Ghemavat, P. (2001). Distance still Matters: The Hard Reality of Global Expansion, Harvard Business Review, 79, No.8, pp. 137-147.
  • Glenn, D. and Israel. (1992). Determining Sample Size. Program Evaluation and Organizational Development, IFAS, University of Florida, PEOD-5, October, 1992.
  • Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Delhi: Prentice Hall.
  • Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ, USA: Prentice-Hall.
  • Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2009) .Multivariate Data Analysis. Upper Saddle River, NJ: Prentice Hall.
  • Heeks, R., Krishna, S., Nicholson, B., & Sahay, S. (2001). Synching or Sinking:Trajectories and strategies in global software outsourcing relationships. IEEE Software Special Issue, 18(2), 54-60.
  • Hinkin, T.R. (1995). A review of scale development practices in the study of organizations, Journal of Management, 21 (5), 967-988. https://doi.org/10.1016/0149-2063(95)90050-0. http://www.123employee.com. http://www.prnewswire.com http://www.statitistics.com 2009.
  • Ifenedo,(2006). Extending the Gable et al. enterprise systems success measurement model: A preliminary study. Journal of Information Technology Management. V. 17 i1. 14-33.
  • Joshi, K, and Mudigonda, S.(2008). An analysis of India’s future attractiveness as an offshore destination for IT and IT enabled service. Journal of Information Technology 23(4),215- 227,doi:10.1057/jit.2008.13. https://doi.org/10.1057/jit.2008.13.
  • Kearney. A.T (2004). AT Kearney’s 2004 Offshore Location Attractiveness Index: Making Offshore Decisions. Chicago: A.T. Kearney, Inc.
  • Kearney. A.T (2016). AT Kearney’s 2016 Offshore Location Attractiveness Index: Making Offshore Decisions. Chicago: A.T. Kearney, Inc.
  • Khan ME, Patel BC, Hemlatha Rao, S.(1993) Use of focus groups in social and behavioral Research - some methodological issues. Consultation on epidemiological and statistical methods of rapid health assessment. World Health Organization, E.M./CONS/R.A./1993.
  • Khan, N., Currie, W. L., Weerakkody, V. and Desai, B. (2003). Evaluating Offshore IT Outsourcing in India: Supplier and Customer Scenarios. Proceedings of the 36th Hawaii International Conference on System Sciences (HICSS’03), 6-9 January, Washington DC, USA; IEEE Computer Sciences.
  • Kleibert, J. M. (2014). Strategic coupling in ‘next wave cities’: Local institutional actors and the offshore service sector in the Philippines. Singap J Trop Geogr, 35: 245–260. doi:10.1111/ sjtg.12044. https://doi.org/10.1111/sjtg.12044.
  • Kline, R.B. (1998). Principles and Practice of Structural Equation Modeling. New York, USA:Guilford Press.
  • Kumar, Sameer; Aquino, Edgardo C.; Anderson, Elizabeth (2007). Application of a process methodology and a strategic decision model for business process outsourcing, Information Knowledge Systems Management, Vol. 6 Issue 4, p323-342.
  • Lacity, M.C., Willcocks, L.P.( 2001).Global Information Technology Outsourcing. John Wiley and Sons. Li, Y., Zhao, Y., & Liu, Y. (2006). The relationship between HRM, technology innovation and performance in China. International Journal of Manpower, 27(7), 679-697.
  • Loh, L., Venkataraman, N., (1992). Diffusion of information technology outsourcing: influence sources and the Kodak effect. Information System Research3 (4), 334–358. http://dx.doi. org/10.1108/01437720610708284.
  • MacCallum RC, Browne MW, Sugawara HM (1996). Power Analysis and Determination of Sample Size for Covariance Structure Modeling. Psychological Methods.1:130–49.
  • MacCormack, A., Newmann, L., & Rosenfield, D. (1994). The new dynamics of global manufacturing site location. Sloan Management Review, 35(4), 69–80.
  • Masood A. B. (2007). Dimensions of industrial location factors: Review and exploration. Journal of Business and Public Affair, 1(2), 1–26.
  • Mazzarol, T., & Choo, S. (2003). A study of the factors influencing the operating location decisions of small firms. Property Management, 21(2), 190–208. http://dx.doi. org/10.1108/02637470310478918
  • McCann, P., Arita, T., & Gordon, I. R. (2002). Industrial clusters, transactions costs and the institutional determinants of MNE location behaviour. International Business Review, 11, 647–663. http://doi.org/10.1016/S0969-5931(02)00043-4.
  • McLaughlin, L. (2003). An eye on India: Outsourcing debate continues. IEEE Software, 20(3), 114-117. http://doi.org/10.1109/MS.2003.1196336.
  • Naidu, K. K., Reed, R., & Heywood, C. (2005). The impact of business outsourcing on corporate real estate in India. Journal of Corporate Real Estate, 7(3), 234–245. http:// dx.doi.org/10.1108/14630010510631072.
  • Nasscom. (2009). Strategic Review.
  • Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGrawHill.
  • Porter, M. (1990). The Competitive Advantage of Nations. Macmillan, London.
  • Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, pp. 79–91.
  • Rajkumar, P (2013). A Study of The Factors Influencing The Location Selection Decisions of Information Technology Firms”, The Asian Academy of Management Journal, Vol. 18, No1.
  • Rao, T.V & Varghese, S (2009). Trends and Challenges of developing human Capital in India.
  • Human Resource Development International; Feb2009, Vol. 12 Issue 1, 15-34. http:// dx.doi.org/10.1080/13678860802638800.
  • Romberg, D.,(1998). Firms here have taken to outsourcing, study finds. Computing Canada 24 (39), 8 (Oct 19).
  • Sekaran, U. (2003). Research methods for business. New York: John Wiley & Sons Inc.142.
  • Sengupta, K., Zviran, M.,(1997). Measuring user satisfaction an outsourcing environment. IEEE Transactions on Engineering Management 44 (4), 414–421. http://dx.doi. org/10.1109/17.649871.
  • Trochim, W. M. K. (2006). Introduction to Validity. Social Research Methods, retrieved from www.socialresearchmethods.net/kb/introval.php, September 9, 2010.
  • Zhang, K., Markuson, J., (1999). Vertical multinationals and host-country characteristics.

RNI Registration No. CHAENG/2016/68678