Effects Of Global Recession In The Call Center Industry And In The Economy BY THERECESSION ON 26.

JUN, 2011 IN WORLD ECONOMY Effects Of Global Recession In The Call Center Industry And In The Economy The call center industry is considered as one of the most successful industries in the Philippines. This is because the industry is consider today as the largest provider of Live Answering Servicein the world market, which recently placed the country as the call center capital of the world. Due to its success, the call center industry of the Philippines is considered as the largest contributor to the significant growth of the Philippine economy in the BPO or Business Process Outsource industry. However, the call center industry of the Philippines was not all successful, particularly in the past. The industry had also gone through a number of trials and difficulties which also resulted in the decline of the Philippines economic growth. A popular example is when global recession had hit the world market. Effects of Global Recession in the Call Center Industry and in the Economy The call center industry of the Philippines became successful not only because of the demands for Live Answering Service coming from local businesses, but mostly from the demands coming from the world market, particularly among many foreign businesses and investors. According to industry experts, most revenues of the call center industry come from the US and other English speaking countries in the western hemisphere. It was also because of this that the call center industry of the Philippines had grown massively in only a decade, which was a rare feat according to many industry experts. However, when global recession had hit the world market, particularly the US, the call center industry of the Philippines was heavily devastated. Because of fear of bankruptcy, many foreign investors in the Philippines had pulled out all their investments, while other foreign owners of call center companies in the Philippines had also closed down their call center business due to bankruptcy. And because most of the industrys revenues are coming from the US, which was also devastated by global recession, the call center industry of the Philippines had taken a major downturn, resulting in many companies closing down. Because of global recession, the Philippine economy was also affected, particularly in the BPO sector in which many Filipinos were left unemployed. Although there are still many call center

companies in the Philippines, their recruitment processes had significantly changed that only allowed skillful agents to work for them. Todays Industry Global recession, though still felt in the market, is slowly receding. This resulted in many foreign investors returning to the Philippines. Today, the industry is now known as the largest contributor of Live Answering Service in the world market, which recognized the Philippines as the call center capital of the world. Nancy David is an entrepreneur and a marketing professional here in Philippines,who is about to start her new found skills in writing about call centers.
Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO.

Globalization means the dismantling of trade barriers between nations and the integration of the nations economies through financial flow, trade in goods and services, and corporate investments between nations. Globalization has increased across the world in recent years due to the fast progress that has been made in the field of technology especially in communications and transport. The government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country. As a result of this, globalization of the Indian Industry took place on a major scale. The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. As huge amounts of foreign direct investments were coming to the Indian Industry, they boosted the Indian economy quite significantly. The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced. The various negative Effects of Globalization on Indian Industry are that it increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries. The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries. The effects of globalization on Indian Industry have proved to be positive as well as negative. The government of India must try to make such economic policies with regard to Indian Industry's Globalization that are beneficial and not harmful.

Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users the "consumers". Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward themass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In free market economies, manufacturing occurs under some degree of governmentregulation.

Economics of manufacturing
According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming.[1][2] Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and fornational defense. On the other hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. Developed countries regulate manufacturing activity with labor laws and environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor Unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing. Manufacturing may require huge amounts of fossil fuels. Automobile construction requires, on average, 20 barrels of oil.[3] [edit]Manufacturing

and investment

Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as:

  

the nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth;

competitiveness; and

attractiveness to foreign direct investors.

In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development. They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors.[4][5] On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand.[6] A total of 3.2 million one in six U.S. manufacturing jobs have disappeared between 2000 and 2007.[7] In the UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda.