MGT 216 Week 5 Individual Assignment Global Business and Ethics Paper
MGT 216 Week 5 Individual Assignment Global Business and Ethics Paper
Popular in Course
verified elite notetaker
Popular in Department
This 0 page Study Guide was uploaded by Experthelper Notetaker on Thursday November 12, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 48 views.
Reviews for MGT 216 Week 5 Individual Assignment Global Business and Ethics Paper
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/12/15
We are a global company and we seek the best talent in every region India has been a wonderful source of that We will move into more cities in the future quot1 Kevin Rollins President and CEO of Dell Inc in 2005 quotThe customer contact centers in India have transitioned into a premier operation for Dell quot2 Romi Malhotra Managing Director Dell India in 2004 Outsourcing is just another example like allowing illegal immigrants to receive driver39s licenses of putting economic and political interests ahead of doing the right thing We need to examine issues like these from an ethical perspective You know Is it right or wrong Steven M Mintz reporter The SanDiego UnionTribune Aug 4th 2004 In the early 2000s the gigantic USA based computer company Dell decided to outsource its call centers to India After a startup period to explore the benefits and risks of outsourcing overseas Dell jumped in full force creating at lest 4 call centers in India and employing as of 2006 a total of at least 15000 jobs in India Dell s strategic outsourcing of its call center to India highlights what has become a growing trend in the 2000s of outsourcing a variety of technologyrelated help desk functions to countries overseas Investigative news reporter Steven Mintz writing for the San Diego Union Tribune in 2004 stated Outsourcing by the technology sector is a growing trend with an estimated 10 billion in net contracts subject to outsourcing in 2004 By 2008 an estimated 23 billion will be subject to outsourcing by this sector According to Cynthia Kroll senior regional economist at UC Berkeley at least 14 million servicesector jobs are at risk of being outsourced over the next decade Mintz 2004 We are now in 2010 with a collapsed economy a desperate need for jobs and computer corporations are as avid as ever in their efforts to expand overseas call center outsourcing Let us take a look at Dell Computers as a case study to examine why outsourcing call centers overseas holds such appeal and the ethical issues involved including both the issues arising within the international host country as well as the ethics outsourcing as these are played out over and over in terms of consequences to both employees and customers within the United States Already a global business in terms of sales of its computers worldwide Dell Computers had kept its problemsolving branch for customer service within the United States in the earlier years of its operations However it became clear in the late 1990s that improvements in technology and telephony would expansion of call to and from countries overseas to be quite inexpensive as compared to international calling costs in the 1980s and early 1990s Improvements in sound quality and speed of transmission opened up the possibility of outsourcing call centers to cheaper labor pools in countries around the world After significant research and discussion of the pros and cons Dell Computers established its first customer contact call center in 2001 in Bangalore India The call center continued the tasks and activities that were essential to customer support and that had been the priority of the customer call center when it was in the USA The primary priority was to provide technical support as well as making sales calls and reaching out to potential customers Accounting tasks were also part of the call center outsourcing workload From 2001 to 2003 Dell established additional call centers in Hyderabad and Mohali Dell s Customer 2006 Problems of the international outsourcing became apparent quickly Over the first two years of operations US customers began to complain that the quality of technical support they were receiving had deteriorated In 2003 Dell reversed its expansion of call centers and brought some of the tasks of the call centers back within the US borders However after further research and discussion Dell shifted the focus of hiring for the call centers to concentrate on management of employees and streamlined education of employees to create a standard set of call back center processes Even so technology industry feedback to the company indicated that there could be future problems if Dell increased its call center activities in India The issue was not the training of call center operators as this had been to a large extent resolved The issue instead became one of competition to recruit and train the best operators for other companies were ooding the call center market and establishing their own callback centers in India Dell s Customer 2006 Dell had become one of many companies globalizing the technology support infrastructure of customer callback centers Outsourcing was not longer a pioneering company activity or even a risky customer satisfaction scenario Companies like American Express GE Capital and many others had jumped on the bandwagon starting in the late 1990s and the momentum just kept going The initial glitches had been resolved opening the doors to other types of problems of a larger nature involving the overall ethics of outsourcing such a high number of jobs and this particular type of job overseas To reporter Mintz outsourcing is not necessarily an automatic negative for the US economy or US employees although the staggering number of jobs now outsourced overseas tends to weigh against the ethics of outsourcing Mintz noted that Most supporters defend outsourcing based on economic considerations Some say more jobs are created at home because the countries benefiting from outsourcing develop more spending power Mintz 2004 What are some of the factors mitigating against outsourcing These tend to be particularly the social and economic costs combined The longterm effects are likely to be even greater unless actions are taken now to slow the trend There are important social costs to consider What happens to US students who are in school to study computer technology computer repair and customer relations in the technology sector as future careers Should these students be told that the prospects for this work are a case of diminishing returns because the jobs are over in India or China or Korea or other countries around the world A loss of morale through awareness of lack of jobs in the USA has affected the technology industry in this arena Dell is making a good profit and potential employees in the United States are on the bread lines Are the ethics in favor of continuing the call center international outsourcing on this count No If we skip over to India or other international locales how is morale faring in the call centers themselves Is there pride in the quality of the call center work Is there a good quality of life for the Dell overseas employees We have already established that there was a drop off in service center quality Customer service thousands of miles from the culture and society of the customers immediately established a set of concerns about quality and expectations of excellence Call center operators servicing such places as Texas or California or New York were given access to and encouraged to read about local sports weather and news in these locations in case a customer veered off of specific product questions and issues Language difficulties issues with call quality and problems with lack of understanding of idiomatic phrases and tone of voice continued to plague the call centers in India for Dell Poor work environment issues began to surface including questions about HR policies in India so that the call centers were often seen as sweat shops by employees with very long hours uncomfortable environments including poor air quality poor desks and chairs and lack of facilities at call centers including restrooms and access to food as well as reasonable breaks for employees during long shifts OutsourceZIndia 2009 Other ethical questions such as differences in cultural business practices and inability to provide stable oversight in the international environment also became problems for Dell as for other outsourcing companies Questions about taxes governmental regulations and potential for bribery became problematic As early as 2004 Dobbs reported that a company in the US called SolidWorks Corporation software discovered an Indian worker in a partner company to which SolidWorks had outsourced had tried to sell information to a software company that was competing for the marketplace with SolidWorks For Dell customer satisfaction was only one of the issues plaguing the outsourcing of call centers Dell eventually cut back on call center responses via India for products with too complicated a list of potential technology problems According to the history of Dell s call center operations in late 2005 Dell received poor ratings in the American Customer Satisfaction Index ACSI survey conducted by the University of Michigan Michael Dell Chairman and Founder of the company commented We were growing too much too fast in too many places Dell s Customer 2006 Dell had attempted to solve its expansion costs in the early 2000s by significantly reducing customer problemsolving costs through finding a much cheaper labor pool for call centers located in India as compared to the USA However the solution then became part of the problem The ethical issues of outsourcing started to be addressed in the mid2000s in state legislatures around the country In 2004 Governor Phil Bredesen of Tennessee signed a bill making it the first state to give businesses an incentive for not outsourcing dataentry and callcenter work to cheaper offshore locales The law asks state procurement officials to give preference in bids for such services to contractors employing workers only in the United States Mintz 2004 Likewise in California a bill called AB 1829 was introduced by thenAssemblywoman Carol Lieu Democrat of Pasadena in which businesses supported by the State of California or local government agencies would be prohibited from spending state funds for contracted work unless the work was performed exclusively by employees in the United States Mintz 2004 Outsourcing is likely to continue as companies overseas streamline their call center offerings addressing exactly the ethical issues addressed here to provide US companies with a set of parameters including cleaner work environments better training of employees overseas and better tracking of the ow of confidential information such as billing details for greater security of transactions and a greater sense of comfort and customer satisfaction As for the future job potential for call center work in the United States a sure bet is this don t count on it anytime in the near future Ethical considerations do not appear to be the top priority when it comes to profit vs contributing to the US economy through job creation US companies requiring customer technology support callback centers appear to have placed their collective vote on the future of employment in this sector and the majority view is that this job is set to remain where it is now overseas References Dell India Sets up Customer Contact Center at Hitec City 2004 Retrieved from WWWdomainbcom Dell to Raise Headcount 2005 The Business Line Retrieved from WWWthehindubusinesslinecom Dell39s Customer Contact Center Operations in India 2006 International Center for Management Research Retrieved from http wwwicmrindi orgcansestudiescataloguemarketinngell 20 Customer 20Contact20Center200perations20in201ndiahtm Epacific Global Contact Center Retrieved from httDWWWepacificglobalcom Mintz Steven M 2004 The ethical problems of outsourcing The San Diego Union Tribune August 4th Retrieved from http WWWcbsnewscomstories2003 1 209nationalmain5 87601 shtml Outsource2India 2009 Ethics of outsourcing Flatworld Solutions Retrieved from httDWWWoutsource2indiacomWhv outsourcearticlesethics outsourcingasn Telus International Global Outsourcing Solutions 2010 Retrieved from httDWWWtelusinternationalcomDh
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'