Name: Raju Kawsar

Module Code & Name: CT1037N Introduction to Communications

Electronic & Communications Engineering
LONDON Metropolitan University.

Why do Telecommunications’ companies outsource services to South and East Asia?

We are now in 21st century, the century of Globalization. In this century people would like to come
closer to each other than before. Not only on this century also from the end of last century, when the
idea of Globalization has developed since then the economic, the social life, the thinking of many
nation as well as people in many countries has started to take a different vision than previous.

The wind of globalization also hit in south and east Asian country, on that area where people live
with comparably a weak economic status then the people of many Europeans, North American and
Middle East countries. Most of the South and East countries are developing countries.

While many Multinational companies start to expand their business in all over the world in different
arena such as automobile, telecommunication, networking etc: ,they try to find the new tool, which
is cost effectively and global enrichment in the form of outsource in the south and East Asia. The
people in those countries are not able exposed to modern communication era yet because of their
countries poor economic conditions. In this situation most of the telecommunication sector giants
are try to setup their own outsourcing operation in Southeast Asia, where they are able to use much
area then a developed country. In south East Asia there is a huge population with more than one
fourth of the world so the company can able to get a huge range of customer and also able to get
rich manpower in low price than any other place in the world. So they can spend less and profit
more.

At a time when these talented professionals started to work with outsourcing corporations in
telecommunication sector and see the flow of change of their production cost which is lower than
other place yet with international standard as people in this part of the world are dedicated, sincere,
industrious and also happy with a better payments compared to their previous employments.

The telecommunication sector not also gets their profit or not only for business have they also
created a huge range of work placement for people of south and East Asia where unemployment is
one of the major problems for poverty. So when the new opportunities start to flow into those
people, their life style, idea is begin to changes in the form of social, national and also in the form of
personal means. People to get a good job and better payment with other facilities the social
improvement start to reflect into the each community.

The main issue is profit and increase the business behind the decision of Telecommunication
Company to outsource their services in south and East Asian country, where they can reduce their
cost of production and grasp the huge customer of that area. While they had their operations in
developed country the cost of productions, employee payments, government taxes are much higher
than south East Asia’s developing courtiers. Therefore they won’t able to get better profit. When
they realize that the people of south East Asia are ready to work with low payment with low
government taxes they take the opportunities.