Where should my center go? A Geographical Choice You work for the Everything You Want To Know Company. With corporate headquarters in Denver, CO, your company allows people to either call in or get on the Internet to ask questions between 5:00 am and midnight, central standard time. There is a small fee for each question asked and your company promises to supply the answer within 1 hr, or give a full refund. Business has been good and the company is ready to expand. The company’s goals are: To expand into global markets To offer answers within ½ hr, shortening the time the customer needs to wait To use steadily more highly educated staff members to answer questions You are in charge of making the decision about the expansion. You have 3 choices: I. Open a new center somewhere in the southeast United States. Things to consider: 46% of your business is currently coming from the East Coast Depressed markets in the southeast will allow you to hire 120 people II. Open a new center somewhere in India Things to consider: India is one of your biggest overseas users so far Lower pay scale and overhead cost will allow you to hire 160 people You have very little global business, so there might be a lot of employee downtime III. Expand the center you have in Denver Things to consider: You have a good base in Denver and should be able to easily expand Because you’re already established in Denver, pay scale and overhead cost will allow you to hire 130 additional people Part 1 Answer the following: Get out a map and considering what you’ve learned about time zones explain what each choice will do for your coverage times. Assume that the people working at each location will only work between 5:00 am and midnight wherever they are. Which location do you think you would select in the southeast United States? Explain why you picked that location. Which location do you think you would select in India? Explain why you picked that location. Part 2 Read each of the 20 statements below. For each statement, decide whether it is relevant to your choice. For each statement, explain why this does or does not this influence your decision about where to put the center. Example Statement: There is steadily improving access to elementary public schools in India. Below are 2 possible answers: Relevant: This means that there are more possible educated workers available to work in the overseas center Irrelevant: My company wants more college employees and an elementary education won’t impact who is hired Notice that both of these answers are acceptable because they have been supported. Where should my center go? A Geographical Choice You will decide if each of these is relevant or irrelevant (NOT BOTH) and explain why. 1 Workers in India $60 a week. An equivalent worker in the United States would earn $350. 2 A teacher in India earns $40 a week 3 Bangalore has a population of over 6 million people and is the fastest growing city in Asia 4 Indian call centres are 40% cheaper to run than ones in the United States and Europe 5 2 million people a year graduate from Indian universities and technical colleges 6 One third of India’s population lives in absolute poverty 7 The Indian center has promised that all employees go through a 4 week training to teach them to have an English accent 8 The Bangalore region is called the ‘byte-basket’ of India. There are 1154 I.T. companies based there 9 There has been a big drop in infant and child mortality in India in recent decades 10 The single biggest cost for a call centre is labor 11 India gained independence from Britain nearly 50 years ago 12 Workers uses the Internet every day to check what the weather is like in the cities they’re contacting 13 In the last two decades GDP (Gross Domestic Product) in India has grown significantly but there are higher rates of unemployment 14 Indian call centres recruit only university and college graduates 15 Workers in India often have to work through the night Where should my center go? A Geographical Choice 16 Call centers in the US are often located in areas of industrial decline and high unemployment 17 The University of Bangalore has 300,000 students and is the largest in Asia 18 Many Indians speak English well 19 Call center staff in India are educated to a higher level than their US counterparts 20 Workers are allowed to watch US soap operas during their lunch breaks Part 3 Create a short presentation that answers each question and explains which evidence you used. Where will you put your center? Why did you make that selection? Which pieces of information influenced your choice the most? What will be the benefits and problems of your choice on your company? What will be the benefits and problems of your choice on the economy of the United States? What will be the benefits and problems of your choice on India?