+ 44 20 8144 3706The rationale for retaining call center in Asia:
There are number of reasons due to which HRS must consistently outsource services to the company located in the Asia. These reasons are explained below.
• High quality service: Asian firms are known for providing quality services to their clients. Outsourcing companies are completely dependent on other companies to earn money. It is a quality which assists them to retain their client base. Hence, high quality service is provided by outsource providers that are located in the Asia.
• Skilled workforce availability: Asian companies have a quality workforce in their business. In the Asia market, there are many agencies that provide HR certification in terms of digital technology use in the HR domain (Dmitrieva and et.al., 2015). Thus, in Asian market, skilled labor is readily available and due to this reason firm must keep outsourcing of services to the company located in the Asia market.
• Cheaper cost: Labor in the Asia market is available at very cheaper price than in the USA and UK market. In India, skilled labor charges $15 per hour, but in the USA same workforce charge a $ 40 to $70 per hour. Thus, there is a huge difference between wage rate per hour in both nations. HR cost in many companies covers 30% of the total cost. Thus, by outsourcing business tasks to Asian company HRS is able to control HR cost in its business and generate economies of scale in the business and this factor HRS cannot ignore while making decision.
• 24 hrs service: Asian companies provide 24 hrs service to their clients. Thus, whenever any individual intends to do an inquiry it will get service on time. If HRS will keep its own team then it will need to keep employs day and night and HR cost will also sharply increase (McCracken, Currie and Harrison, 2016). On the other hand, at low cost, 24 hrs service can be provided to the client by outsourcing services. Thus, on this ground also Asian company is the one of the best option available to the firm.
• Benefits of currency exchange rate: Due to currency exchange rate also HRS can get service at lower cost. Asian nations like India currency remain lower than GBP and Euro. Thus, with the devaluation of INR or any other Asian nation’s currency whose value is less than GBP and Euro payment bill for HRS will also reduce. Thus, by outsourcing service to the Asian company cost benefit is also received by the firm
• Flexible pricing options: With outsourcing company by negotiating contract further cost can be reduced in the business and this lead to cost cutting.
• Staff flexibility: According to requirement, HRS can call outsource company to curtail or increase the workforce in the business (Taylor, 2018). In case HRS will keep its own team then it can observe such kind of flexibility in its business. In case workload reduces and workforce size remains high, then in that case the heavy cost burden firm will need to bear in its business.
References:
Books and Journals
Abdollahbeigi, B., Salehi, F.. and Jayashree, S. 2017. The effect of recruitment, selection and development on talent management in IKCO company in Iran. International Journal of Advanced Engineering and Management. 2(3). 69-77.
Cui, W., Khan, Z.. and Tarba, S. Y. 2018. Strategic talent management in service SMEs of China. Thunderbird International Business Review. 60(1). 9-20.
Dmitrieva, N. V. and et.al., 2015. Scientific and theoretical aspects of the staff recruitment organization within the concept of” Talent Management”. Asian social science. 11(3). 358.
Gallardo Gallardo, E.. and Thunnissen, M. 2016. Standing on the shoulders of giants? A critical review of empirical talent management research. Employee Relations. 38(1). 31-56.
Hejase, H. J. and et.al., 2016. Talent Management Challenges: An Exploratory Assessment from Lebanon. International Journal of Business Management & Economic Research. 7(1).
Kaliannan, M., Abraham, M.. and Ponnusamy, V. 2016. Effective talent management in Malaysian SMES: A proposed framework. The Journal of Developing Areas. 50(5). 393-401.
Kaur, P. and et.al., 2015. Using social media for employer branding and talent management: An experiential study. IUP Journal of Brand Management. 12(2). 7.
Martin, A. 2015. Talent management: Preparing a “Ready” agile workforce. International Journal of Pediatrics and Adolescent Medicine. 2(3-4). 112-116.
McCracken, M., Currie, D. and Harrison, J. 2016. Understanding graduate recruitment, development and retention for the enhancement of talent management: sharpening ‘the edge’of graduate talent. The International Journal of Human Resource Management. 27(22). 2727-2752.
Paisey, C.. and Paisey, N. J. 2018. Talent management in academia: the effect of discipline and context on recruitment. Studies in Higher Education. 43(7). 1196-1214.
Rabbi, F. and et.al., 2015. Talent management as a source of competitive advantage. Journal of Asian business strategy. 5(9). 208.
Taylor, S. 2018. Resourcing and talent management. Kogan Page Publishers.
Thunnissen, M. 2016. Talent management: For what, how and how well? An empirical exploration of talent management in practice. Employee Relations. 38(1). 57-72.
Online
Selection process., 2020. [Online].
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