Economic Growth in Korea

The fast development and improvement in the recently industrializing economies (NIE†s) in ongoing decades has been downright fabulous. Presently among the world†s most powerful industrialized economies, the NIE†s of Singapore, Taiwan Hong Kong, and South Korea which will be the center, remain as maybe the best instances of fruitful financial turn of events. The monetary improvement of South Korea, which has been among the most fast on the planet is run of the mill of the ‘miracle† that is the NIEs. Korea has overcome much since the days it was ‘a country of hungry rice farmers†, by seeking after an industrialisation-drove advancement duty since 1961, which has since delivered yearly GDP development of 8.4% per annum, second just to China. The achievement of South Korea, has been recognized by various variables including the move away from import replacement techniques towards trade orientated industrialisation, and the successful overseeing of the economy and dictator rule embraced by the administration so as to quicken the pace of capital collection, specialized advancement and basic change to create financial development past what might happen in a free market economy. NIEs, South Korea, are currently perceived as ‘export machines† bragging some the most elevated exchange/GDP proportions on the planet. Worldwide monetary relations started in 1964 with the acknowledgment of these constraint of the residential market and the ineffectualness of seeking after replacement industrialisation techniques. As a feature of its new system for send out extension the South Korean government presented new estimates which incorporated the depreciation of the won, which improved the intensity of its fares and acquainted motivators planned with channel assets into trade orientated businesses. Exporters were likewise bolstered by direct money installments, authorization to hold outside trade income for the acquisition of imports, and the exclusion from for all intents and purposes all import controls and levies. The legislature in discussion with firms, set up trade focuses for enterprises just as individual firms. These objectives seemed to have affected firm conduct and supporting this case was from somewhere in the range of 1961 and 1973 the volume of fares expanded at a yearly pace of 35% and today proceeds to reliably rank in the main twenty exchanging countries. In the course of the most recent 30 years the portion of makes in complete fares has expanded from 12% to 95%. Besides the makes sent out have themselves changed with further developed items, drove by hardware ruling the rundown of significant fares and consequently the significance of the Samsung and Lucky Goldstar to the Korean economy. The course of exchange has additionally changed to some degree, where South Korean fares went to a great extent to the USA and imports originated from Japan, Asian nations barring Japan are presently South Korea†s significant exchanging accomplices. The significance of China is likewise happening to expanding importance. South Korea†s financial accomplishment as noted can likewise be added to the significant levels of reserve funds and venture. South Korean†s spare about 35% of GNP and subsequently maintainable financial development has been driven by capital stock collection and extended gainful limit. To be sure a few figures appear at 60% of monetary development in South Korea is a consequence of capital amassing and increment foundation. Without a doubt one of the most significant legitimizations for financial achievement is powerful government intercession. Specific government intercession has advanced the improvement of new businesses, huge numbers of which have gotten globally serious and furthermore bolstered and propelled the development of the private segment. The principle point of the legislature in South Korea has been to guarantee that the conduct of individual business concurred with the drawn out enthusiasm of the business class in general, and keeping in mind that applying dictator rule perceiving when the time had come to permit the market to work all alone. Aside from the macroeconomic administration, government in the NIEs have likewise tried to quicken the pace of capital gathering, specialized advancement and basic change past what might have come about because of â€Å"laissez-faire.† All NIEs sought after exchange arrangements, supporting mechanical extending and the improvement of national firms with particular motivations to advance fares. In South Korea for instance, the legislature gave Chaebols special access to bank advances, depending on them to grow substantial and compound ventures equipped for contending globally. Without a doubt four many years of mechanical advancement in South Korea have been set apart by what have been set apart as ‘incestuous ties† between large business and government. As of late government has been threatening to the combinations however the arrangement of Mr Kim Suk Won to the decision party has revived an old injury over the job of large business and legislative issues in South Korea. The job of the Chaebols in the Korean economy was a significant explanation behind Korea†s accomplishment in the course of the most recent 40 years. The Chaebols are the enormous multi-organization family claimed business substances which are both evenly and vertically incorporated. Models incorporate Samsung, Hyundai, Lucky Goldstar and Daewoo, which together record for over a large portion of the all out yield. The Chaebols have assumed a significant job in the financial improvement of Korea. They were given particular access to bank credits and were depended upon to build up the HCIs (as they had the assets and capacity to contend in remote markets). For sure, the time of the HCIs drive denoted the most fast development of the Chaebols. The Chaebols occupied with savage and even heartless rivalry with each other on the numerous fronts of industry, with in any event 4 or 5 rivals in every industry, which all added to the financial extension of the economy. The administration in South Korea, just as different NIEs has upheld an innovation strategy. By giving a positive assessment condition, government has in a roundabout way empowered business innovative work consumption. The Korean government for instance gives a duty credit equivalent to 10% of capital uses. Flow strategies are planned for accomplishing a 5% portion of innovative work consumption in all out GNP by 2001. The legislature has likewise helped crucial innovative improvement in cutting edge materials, propelled vehicle innovation, bio materials and atomic reactors. The job of the legislature in South Korea was likewise to give these monetary motivators to advance the improvement of specific businesses. Financing costs for instance were kept commonly low and stable so as to lessen the expense of venture. Assigned businesses got need in portion of bank credit, state speculation reserves and outside trade, The administration in South Korea intentionally misshaped costs and motivating forces as to improve the market result and quicken financial development. The administration in South Korea likewise effectively sought after rivalry arrangements. This intercession works the two different ways. As it were rivalry strategy limited the opposition or advanced rivalry strategy in the zones relying upon the conditions. In South Korea the administration conceded exceptions to aggregates from laws overseeing monopolistic practices. Rivalry strategy has been hitched with industry strategy. In this the job of government has been restricted with government strategy collaborating with the serious techniques of private firms. Governments in the NIEs have been surprisingly steady. This has had evident advantages on the economy. There is no standard equation for government in the NIEs and there are contrasts between them across countries. Singapore for instance has a paternalistic government while Hong Kong is basically â€Å"laissez-faire† Stability is the main genuine connection between administrations of the NIEs. As the South Korean economy arrived at a progressively full grown phase of financial development issues with respect to the auxiliary change in the economy started to surface. The farming part in South Korea for instance is presently just 33% of its unique size. Most prominently there has been a checked move to the tertiary division. There has been clear issues and difficulties coming about because of this. Most eminently fast development has realized work deficiencies in key areas, for example, hardware, overwhelming apparatus and shipbuilding. Such lack of work in which bosses have noone to fill opportunities made by extended beneficial limit will compromise South Korea†s blasting fares, which is viewed as the vehicle for development in South Korea. The issue is additionally exacerbated by an expanding hesitance among school leavers to ‘dirty their hands† in industry and the failure and reluctance to draw in outside work. After development and advancement in South Korea for such a long time was driven by government intercession one of the most significant difficulties confronting the developed economy was for the administration to give up quite a bit of its impact over the economy and to permit showcase powers to work adequately. On the off chance that South Korea is to keep on developing as a really progressed industrialized country then clearly the market system should be let to work uninhibitedly. This will require some serious energy and cause and furthermore cause relative social agitation. As the South Korean economy has arrived at an adult stage, it has perceived the old administrative condition that prompted significant levels of sources of info particularly in assembling segments yet low degrees of profitability must change. In assembling, Korea has enormously put resources into the best accessible innovation but since of protectionism and poor corporate administration in banks and organizations, it was not compelled to receive the best administrative practices. Therefore work and capital profitability are in most assembling divisions less that half of US levels and in this way should be one of the difficulties for future achievement of the Korean economy. Different difficulties that Korea has needed to confront, c

Research Real Estate Data Set free essay sample

Dynamic In this paper the group broke down three insightful articles identifying with our investigation. Besides, the group likewise dissected extra informational indexes to incorporate more factors like rooms and restrooms in our examination to test our speculation which shows that the outcomes are reliable with the theory. The populace size, essential and auxiliary information, utilizing fair-minded data and applying morals are additionally talked about in detail. Land Data Set II As we start the last phases of our venture it is essential to comprehend the procedure of applied research and how at least one variable affect the reliable variable. It is imperative to comprehend why research is essential and how we apply research to find solutions to issues. The group investigated thirty date sets to look into homes with or without a pool, with or without a carport, and on the closeness of the house to the city, and how those variables influenced the selling costs of homes. Moreover, the group additionally broke down more informational collections to incorporate more factors like rooms and restrooms. Six rooms, three shower houses will sell for in excess of a one room, one shower houses, whether or not it has a pool or carport. As we go ahead with this task and break down more information assortment sets, it appears that the theory that we proposed is the correct one. Our theory is based around the idea of human prioritization and its job in home determination. Also, the group inquired about three academic articles that are relevant to our investigation to assist us with understanding why the exploration is significant and fundamental. The principal article utilizes investigation to talk about the association between the selling cost of a home and â€Å"Time on the Market† (TOM) (Sirmans, et al, 2010). It expresses that the more extended the house is available the lower the selling cost of the house. The investigation utilizes informational indexes to inspect single family homes and whether the TOM co-effective is powerless to area, salary of families, riches and time. The outcomes demonstrated that the TOM co-effective is touchy to the factors and there is a critical connection among TOM and the selling costs (Sirmans et al, 2010). It additionally expresses that selling costs and TOM is an entangled on the grounds that ellers/purchasers need to boost the cost, while venders need to sell at the top value purchasers need to buy at the most reduced cost. The subsequent article examines the investigation of how innovation of land is changing and how significant innovation is critical to accumulate significant information from private and open hotspots for the land business. Numerous investigations have been distributed about the effect of the data on the land business, on showcase siz e and productivity, and market development. These examinations have demonstrated that email and the utilization of web are utilized as a positive showcasing instrument. Study questions were created to accumulate data about realtors and their mentality about utilizing data innovation as promoting their administrations. The outcomes were certain and all that were studied seen that data innovation was key in certain regions. Web utilization got a high score alongside online research yet close to home webpage’s demonstrated a lower score (Acharya et al, 2010). The third article analyzed that in land improvement there is a requirement for hazard appraisal strategies to survey the effect of the task. The article depends on an exploratory overview which information was gathered through meetings and a poll. The examination was led in the Thailand territory utilizing Thai land advancement organizations. The examination uncovered that there are no deliberate procedures to manage the worries of monetary and political dangers (Khumpaisal et al, 2010). Each of the three articles center around land research and how data is gathered and utilized in various examinations. Every one of the three article talk about how information, the assortment of the information and the utilization of the information have a significant influence while leading examination. When directing examination it is frequently troublesome, or unrealistic to test the whole populace. Numerous issues can emerge, for example, time utilization, cost, and excess data. Frequently it is workable for specialists to reach inferences dependent on populace tests. This is the point at which we test a little segment of the populace and make determinations on the whole populace dependent on the example results. For our examination the example of thirty homes originated from a bigger example of one hundred six homes. These homes were an example of homes in a single state, across five townships. For our exploration we chose to restrain the example to around thirty homes of comparative characteristics (outside of the factors we are trying). The explanation we do this is to make certain there isn’t an outside, obscure variable influencing the trial. Along these lines we picked homes that are somewhere in the range of two and three rooms, with two washrooms. This gave us an example of thirty-one homes. For this specific research, it is conceivable to see the effects of various factors on home costs. Likewise, with in excess of thirty examples it is additionally conceivable to wipe out anomalies that may slant midpoints. For instance, on the off chance that we just tried three homes and two of them were estimated preposterously, we wouldn’t have the option to reach substantial inferences. Notwithstanding, by testing thirty-one homes, we can wipe out exceptions. There are numerous potential wellsprings of predisposition and blunder when testing a theory with just example of the populace. For our situation, we could basically preclude homes that refute our speculation. One explanation behind this is on the off chance that we were working for a land organization and they need to see which homes can get them the most cash-flow, and we know there are a great deal of homes close to the downtown area available to be purchased. On the off chance that we overlook homes far away from the city that are selling for additional, our inclination has made us give bogus discoveries. Not all exclusions are deliberate. Once in a while mistakes are essentially made in the examination procedure. For instance, with our exploration we could have included homes with any number of rooms. This would have brought about information that might not have been pragmatic for our examination. For instance, the total informational collection included homes with up to eight rooms. If we somehow managed to contrast that with a home with just two rooms the way that either had a pool, or carport, or was near the city would have been insignificant. Once more, we decided to just test comparative homes in regard to number of rooms and restrooms so as to forestall this blunder. It is important to gather essential information when a scientist can't discover the information required in optional sources. A few techniques for essential research would incorporate perception, postal studies, phone interviews, online overviews, vis-à-vis reviews, center gatherings, and test promoting. Perception functions admirably in retail advertises. Watching shopper conduct gives numerous experiences, in spite of the fact that can some of the time leave unanswered inquiries. Postal overviews are extraordinary in light of the fact that they are generally modest with the capacity to cover a wide land region. In any case, reaction rates are insignificant and can take a long while before any of the studies are returned. Phone interviews permit faster criticism than a postal study however any potential clients are normally reluctant on offering anything besides short responses. Progressively mainstream and at generally minimal effort, reviews online are broadly utilized by developing organizations as a method of social affair the perspectives on potential and existing clients. Up close and personal reviews are some of the time expensive, however an incredible method to get individual nitty gritty knowledge, while center gatherings are a decent method of getting point by point data about client inclinations and tastes. Test advertising includes picking a little area of the market and offering another item so as to survey client response. This essential research can be an extraordinary indicator of how another item or administration will be gotten by the bigger market. Essential research is the favored research and led constantly. National surveys and reviews gather the population’s musings about proposition or specific political figures, columnists use it as their essential methods for detailing occasions just as news, and associations gather information on their market patterns and purchaser base. When directing exploration in expert or scholarly settings, the specialist should know about the morals behind the examination movement Ethical issues emerge all through any bit of all exploration. These issues regularly transform into political ones, and there are additionally close associations between issues around investment and moral concerns. Moral issues likewise tend to transform into inquiries of trust. The specialist is the exploration instrument in this manner the peruser or potentially client of subjective research must have the option to believe the analyst to have followed the best possible methods. There are many key expressions which portray the arrangement of moral securities that clinical research and the contemporary social foundations have made, for example, willful interest, educated assent, classification, namelessness, and rights to support, to all the more likely ensure the examination participant’s rights. When leading exploration it is imperative to see all phases of the examination and apply great practices, for example, utilizing fair-minded sources and clear and moral norms. In any event, when clear moral norms and standards are set up, there will be times when the privileges of potential members clashes with the need to do exact research. No arrangement of guidelines can foresee each moral condition. Besides, there should be a method that guarantees that specialists will consider all significant moral issues in detailing research plans.

Free Essays on The Importance Of 24 Hours

The Importance of 24 Hours I have had significant years, some genuinely huge months and possibly a couple of remarkable weeks, however I can’t state I’ve had too many momentous days. It is just 24 hours all things considered. There is one specific day, in any case, that could likely be advocated as significant, possibly the most significant day for me: March tenth 1980. I can sincerely say I would not be the individual I am today notwithstanding that day and its occasions. All that I could ever require was acquainted with me that day. I met a few people who might be there to help me in the entirety of my future endeavors, fruitful or not. They would show me numerous important systems to make my objectives achievable. I met a lady with an incredible information on numerous helpful abilities and stunts she would joyfully impart to me. There was a young lady, and she guaranteed that day to control me through the hardest occasions and to set me up for when she was unable to be there. The man who was there would sometime walk me up to the greatest choice of my life and give me and my choice to another person. They make up a quite decent group. It’s such a characteristic and fundamental thing that one’s birthday would not be the ordinary reaction to â€Å"What was the most significant day of you life?† yet it ought to be. That is the day when every one of your establishments are laid, regardless of whether they are fortunate or unfortunate, that is the place our life will start. What's more, I was starting off on a really decent foot. The main lady I met, my mom would some time or another show me all the nuts and bolts I would need to get me by throughout everyday life. She would instruct me to cook, clean, sew, basically exactly how to run a house. She would likewise disclose to me the various things a lady has to know. She would be there from the earliest starting point as far as possible. My father’s job anyway would not be so huge and would not come until some other time in my life. He would be there to tell me the best way to have a ton of fun, how to fall into difficulty and, ideally, how to escape inconvenience. Later on he would have b... Free Essays on The Importance Of 24 Hours Free Essays on The Importance Of 24 Hours The Importance of 24 Hours I have had significant years, some genuinely noteworthy months and perhaps a couple of eminent weeks, however I can’t state I’ve had too many notable days. It is just 24 hours all things considered. There is one specific day, in any case, that could presumably be defended as significant, perhaps the most significant day for me: March tenth 1980. I can genuinely say I would not be the individual I am today notwithstanding that day and its occasions. All that I could ever require was acquainted with me that day. I met a few people who might be there to help me in the entirety of my future endeavors, fruitful or not. They would show me numerous important procedures to make my objectives feasible. I met a lady with an incredible information on numerous helpful aptitudes and stunts she would cheerfully impart to me. There was a young lady, and she guaranteed that day to control me through the hardest occasions and to set me up for when she was unable to be there. The man who was there would some time or another walk me up to the greatest choice of my life and give me and my choice to another person. They make up a quite decent group. It’s such a characteristic and fundamental thing that one’s birthday would not be the ordinary reaction to â€Å"What was the most significant day of you life?† yet it ought to be. That is the day when every one of your establishments are laid, regardless of whether they are fortunate or unfortunate, that is the place our life will start. Also, I was starting off on a really decent foot. The primary lady I met, my mom would some time or another show me all the fundamentals I would need to get me by throughout everyday life. She would instruct me to cook, clean, sew, practically exactly how to run a house. She would likewise disclose to me the various things a lady has to know. She would be there from the earliest starting point as far as possible. My father’s job anyway would not be so huge and would not come until some other time in my life. He would be there to tell me the best way to have a fabulous time, how to fall into difficulty and, ideally, how to escape inconvenience. Later on he would have b...

What You Dont Know About Topics to Write a Profile Essay on

What You Don't Know About Topics to Write a Profile Essay on The Nuiances of Topics to Write a Profile Essay on Profile writing involves disparate elements of the brain in order to create an emotionally involving piece. Career objectives are most useful for people targeting one specific position, since they let the applicant to directly cover the requirements of the business and show how they are going to fit in the workforce. Stating an objective on your resume is a means to convince employers that you understand what you want in work, though a profile explains what you need to provide the employer and can help sell your candidacy. You will have the ability to pick out your strengths a good deal better in case you write your individual profile last. You are interested in being honest without You need to mention your finest traits but don't wish to seem conceited. You would like to mention your finest traits but don't wish to seem conceited. The Upside to Topics to Write a Profile Essay on Convince anyone who reads your profile that you're a champion and which you can change their company. You can imagine a couple more questions you will use in such a circumstance. An individual can come across hundreds of business profile templates, from which the very best one can be chosen to fulfill the demands of the organization. It's super-difficult to work out what to say in an initial email to a prospective match. A well-written company profile is a powerful approach to introduce the business to the possible clients and other stakeholders. Have a look at the work listing for insights into just what the organization is on the lookout for in an employee. Don't advertise for an assistant Even supposing it's correct, you don't need to mention that you will need home cooking or a superb handyman around the home. If you've just launched a new company and are searching to earn a fantastic first impression on prospective clients, then it's necessary to make a potent company profile. Topics to Write a Profile Essay on - Dead or Alive? Lay down a fundamental groundwork of what topics will be covered, the duration of time needed, and the significance of the interview. The secret to a superior profile is being aware of what elements to list so as to catch a possible employer's interest. The profile is just one of the most fundamental and versatile formats of media writing. A personal profile is es sentially an overview of the abilities and experiences which you have. Topics to Write a Profile Essay on Explained Before you start to compose your artist profile, take some opportunity to think about the image of yourself you'd love to present. An artist profile is intended to tell those who discuss and adhere to the art world about you and the art you earn. After all is said and done, make certain to bear in mind your artist profile will increase and change with you. It will need to be direct and to the point, so you will need to go through the various points you want to make and pick the ones that are the most essential. Topics to Write a Profile Essay on Features Let's try to compose the steps on how best to write a great profile essay. When writing about a case of a profile essay about an individual who's not well known include enough details that will enable your reader to acquire an idea about what you're presenting. As you read the job of different writers, you'll be in a position to recognize even little details that would have eluded you. It's a good idea to plan your writing process and to plan the entire story. The conclusion is composed of a couple sentences wrapping up your essay. In a case of personality profile essay, you may use a brief story or a conversation. You don't need to divide the major portion of the essay into a few parts devoting each to a single sphere of life. Tip It's fine to let the individual you're profiling read your essay should they wish to, but don't forget that the last say in the way the essay is worded belongs to you. In case you were writing about a personal profile essay example about a celebrity, you must make the reader feel pleased with the info you've provided. By eliminating one sentence from a three-sentence quotation, for example, your readers may discover that it's a lot easier to recognize the vital point which you want to have across. Give the reader a glimpse about what things to anticipate from you. You are able to put away one or two sentences if you think it will assist the reader to find the most important idea better. At the conclusion of a well-written profile, you might adore the man or woman or hate the individual. A profile is a sort of feature story and usually focuses on an individual and what's important or interesting about that person at the present time. An excellent profile provides you with something that you can't get elsewhere to truly become familiar with the individual. The term profile usually means you ought to describe and uncover all the hidden features of someone or something.

Why Giving Away Millions of Dollars is Okay - 1933 Words

The utilitarianism principle is commonly thought of as the basis behind making morally good decisions or acting to create the greatest happiness for the greatest amount of people. John Stuart Mill’s basic principle of utilitarianism is usually referred to as the â€Å"greatest-happiness principle† because of this (Mill, 7). In chapter two of his book, â€Å"Utilitarianism† Mill defines the moral principle of utilitarianism as one that encourages people to act so as to produce or promote the greatest aggregate or combined happiness for all people (p 7).When confronted with the decision of whether to accept the Vanderbilt’s Chancellor recommendation that the Athletics Department budget be cut by 90% in order to raise funds for early childhood†¦show more content†¦Even though a fool may be content with that he doesn’t know, the educated person knows both sides and should feel bad about not helping. Besides education, childhood education progra ms have been linked to a lower crime level in cities. Lower crime rates mean less people in jail, which would save the state money, and potentially lower taxes for citizens, increasing happiness for a huge base. According to Tennessee’s correctional facilities website, it costs about $65 to keep an inmate in jail for one day. In the terms of having the highest intensity or integrity of happiness, education can lead to higher earning, fewer crime problems, etc. Mill discloses to the reader how to distinguish between quality pleasures (higher and lower). If people would choose the pleasure over a different pleasure even if it comes with minor pain or discomfort, it can be considered a higher pleasure. It is also of higher quality if they wouldn’t trade it for more of the other pleasure. Continuing, it is incontestable that given equal opportunity to receive the opportunities and pleasures, people will choose those that appeal to their higher faculties, for example someo ne who has received an education will not choose to become uneducated and therefore ignorant (p 10). It should be noted that the cut money from the budget would also be put into low-income healthcare. Projects like these help keep people healthy, even ifShow MoreRelatedPersuasive Essay On Death Penalty1158 Words   |  5 Pagespeople have forgotten the difference between right and wrong and have forgotten that some things aren’t okay to do. People think that it is okay to kill, rape, torture, etc. They think they can do all of this stuff and not get punished for their actions. How can we as a society think that we can make a change in this world if people continue to do hateful things and think that those things are okay to do? 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The Cold War Tension Effect On The U.s. And The World

Ison Leong Leong 1 Amy Hawkins ULI Lv6 Advanced Writing 26 July 2015 The Cold War Tension’s Effect on the U.S. and the World After the end of World War II, some people may have felt safe. However, even before Nazi Germany put its guns down in Germany in 1945, the political giant, and U.S. president, Franklin D. Roosevelt died by illness. The new president, Harry S.Truman, had to face an unstabilized situation and some new challenges. At first, he had to make sure the war criminals were punished during the Nuremberg trials. He helped create the World Bank and the International Monetary Fund (IMF) and financed the remaking of Japan under General Douglas MacArthur. In 1947, Truman developed the Marshall Plan, which offered more than $10 billion for the reconstruction and reindustrialization of Germany (SparkNotes Editors). The Marshall Plan was so successful that manufacturing plants in Western Europe were producing the product equal to prewar numbers within a couple of years. The U.S and the Soviet Union worked together during the World War II, because they had the same interest. Unfortunately, Joseph Stalin , Soviet premier, did not agree with what Truman did above. He wanted Nazi Germany to pay for what they had done in the Second World War, and he destroyed the factories in Germany in order to make sure the GermanShow MoreRelatedEssay on Causes and Effects of the Cold War1384 Words   |  6 PagesCauses and Effects of the Cold War The Cold War, though never involving any fighting on either side, resulted in one of the biggest scares the U.S. society and government had ever experienced. The Cold War was all in all an extended period of political and military tensions between the United States and our allies in the Western Bloc, and the pre-existing Soviet Union and their allies involved in the Warsaw Pact. If not had been dealt with very carefully, the Cold War would’ve gained a new nameRead MoreCold War Vs. 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Adult Learning Session Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Adult Learning Session. Answer: When to evaluate adult learning session, explain the following for three sessions Three learning sessions that an educational institution can arrange for the stakeholders are as follows: Workshop: Workshop is a sort of interaction session between the facilitators and the participants for enhancing the practical knowledge and experience of an individual. In order to run an educational institution successfully, the role an efficient teacher as well as management is undeniable. The facilitators tend to interact with the participants by conducting a workshop. In this particular learning session the facilitators like to provide various practical situations to the participants. The participants are allowed to demonstrate this situation. Based on their level of performance the facilitators provide necessary training on how to improve their performance level. Seminar: Seminar is the form of academic instruction where large number of experts intends to give their presentations. Participants are successful to enhance their skill and knowledge from the presentation of lecturer. Seminar is the form of one way learning communication where the participants do not have the direct scope to interact with the experts at every step. This particular learning session as well helps to increase the knowledge and experience of the participants. Training program: Training and discussion program is the type of learning process where both the trainers and the trainees have equal contribution for enhancing knowledge. The trainers by maintaining interactive approach tend to communicate directly with the participants in order to know their problems facing at the training session. Identify the two key stakeholders for each session: Stakeholders are the concerned persons or the group of persons who are directly or indirectly associated with an organization. The key stakeholders who are involved in the success of an educational institution include managers, teachers, students, other members of administrations and so on. Workshop: In order to participant in a workshop the key stakeholders who have been chosen include teachers and workshop facilitators. Seminar: Managers and the teachers have been selected as the key stakeholders for this particular training session. Managers in every single department play a major role in keeping a constant control of an institution. The role of an efficient manager is to direct every single employee towards reaching the goal. Therefore, in order to direct the teachers managers have to gain skill and competency level. Therefore, an effective training session is needed based on which the managers in various departments can develop their professional skill. As a result, they can handle needs and demands of teachers efficiently. On the other hand, teachers are another stakeholder who needs a learning session for enhancing their performance level. The success of an organization is fervently dependent on the performance level of teachers. Therefore, before involving the students in a classroom, organizations need to provide an effective training session to the teachers as well. Training program: Teachers and the management faculties have been selected as the key stakeholders for conducting this learning session. Identity two stakeholder needs: The three learning sessions that have been conducted for an educational institution include workshop, seminar and training and discussion program. The needs of those key stakeholders for each learning session are as follows: Workshop: Need of faculties: Workshop facilitators play the major role of organizing the entire workshop systematically. The teachers intend to follow the instruction of every individual facilitator for enhancing their skill and competency level. The role of workshop facilitators is to train and guide the teachers for being flexible in the classroom both in their attitude and their style of teaching. Need of teachers: While taking a class an efficient teacher aims to grab the attention of every single student. Therefore, the teacher has to follow teaching style or mode in such a way that students from every psychological background can focus on concentrating within the classroom. Therefore, an effective workshop can enhance the competency level of the teachers for being more flexible within the classroom. Seminar: Need of teachers: Teachers need to select the teaching mode in such a way that every single student can concentrate in the classroom. Otherwise, the purpose of maintaining teaching and learning process would not be effective. Therefore, an in-depth seminar can help an individual teacher on how to maintain attitude inside the classroom. Need of managers: In order to form a particular organizational strategy and policy managers should have a level of competency. Their delivery mode needs to be systematic by maintaining a rhythmic pace. Managers by attending a seminar know on how to implement organizational strategy so that number of target customers can be increased. The personality of an effective manager reflects on the delivery style Training session: Need of teachers: Every individual teacher would like to follow the decision of management only when the managers would be able to throw a convincing approach to the teachers. Therefore, an effective delivery mode is highly important to direct the employees properly towards reaching the business goal. Therefore, this particular study has decided to focus on choosing delivery model as the stakeholders need. Based on the primary needs of stakeholders the institution has decided to provide training session. Need of management faculties: Management faculties should receive a proper training on how to overcome sudden crisis happening at the workplace. At the same time, managers should know how to maintain a team rapport for achieving the business target. In order to interact with the guardian of students, managers should have a professional skill and competency. Therefore, training and discussion is needed for enhancing their professional skill of management faculties. Two evaluation tools The evaluation tools that would be used for each session are as follows: Workshop: In order to conduct a workshop the two evaluation tools that would be used include observation and questionnaire. Seminar: In order to conduct a workshop the two evaluation tools that would be used include observation and questionnaire focus group. Training session: In order to conduct a workshop the two evaluation tools that would be used include interview and questionnaires. Evaluation tools At the time of using these tools, the areas that have been covered imply presentation style, content structure and opportunity for interaction. After observing the two key stakeholders the trainers have identified the appropriate presentation style that the stakeholders should apply at their workplace. The tool of observation helps the trainers on how to make identify the problems of participants. The trainer has also explained why presentation is highly important for every stakeholder for dealing with different situations. On the other hand, the teachers would be successful in taking a particular class only when the learning process would be beneficial for the student. Therefore, while using the evaluation tool like focused group the trainers have made a group discussion by involving the teachers regarding the development of learning policy. At the same time, the significance of interview is also very important. Before making a presentation both the managers and the teachers within an institution have to prepare a script or content. As a result, at the final stage they would not fumble while providing the presentation. Students are from different cultural and religious backgrounds. As a result, the teachers have to form content in such a way that every individual student can equally understand the learning style. Similarly, managers should present their speech in such a way that teachers can easily understand them. In the two evaluation tools for each section, the trainer is having enough scope to interact with the participants. Without an effective interaction or questionnaire, the trainers would not be able to understand exactly where the participants are facing difficulties in following the training process and methods. Therefore, based on those areas, the trainers can change their strategies. References Aelterman, N., Vansteenkiste, M., Van Keer, H., De Meyer, J., Van den Berghe, L. and Haerens, L., 2013. Development and evaluation of a training on need-supportive teaching in physical education: Qualitative and quantitative findings.Teaching and Teacher Education,29, pp.64-75. Hardr, P.L. and Burris, A.O., 2012. What contributes to teaching assistant development: differential responses to key design features.Instructional Science,40(1), pp.93-118. Hutchison, A., 2012. Literacy teachers perceptions of professional development that increases integration of technology into literacy instruction.Technology, Pedagogy and Education,21(1), pp.37-56. Reece, I. and Walker, S., 2016.Teaching, training and learning: A practical guide. Business Education Publishers Ltd. Rienties, B., Brouwer, N. and Lygo-Baker, S., 2013. The effects of online professional development on higher education teachers' beliefs and intentions towards learning facilitation and technology.Teaching and Teacher Education,29, pp.122-131.

6 Must-Follow Tips for Editing an Academic Paper

Editing an academic paper is a bit different from that of work destined for a blog or publishing a novel. Because academic and scientific papers are written in a formal style, they need to be carefully edited to ensure the communication of ideas in an unambiguous way, with clarity and solid structure from start to finish. An academic work is meant to be taken literally, so let’s explore these 6 best practices for editing. 1. Ensure style is consistent throughout. There are many formats for writing an academic paper, so choose which style will best suit your work and ensure that it’s applied consistently throughout. The APA writing format (American Psychological Association) was designed for publication in psychological journals, but is widely used in many scientific fields. Whatever style you choose, follow the appropriate outlines and formatting structures for the greatest success. Some general guidelines to follow are: Maintain consistency with margin width: top, bottom and both sides. Font size should be used consistently. Double space text, including references and bibliographies. Text should be aligned to the left margin. If your work is to be published, use a Running Head (a short title no longer than 50 characters) at the top of each page, aligned flush left. Use the active voice. This is an area of change from the past where an impersonal form was the traditional rule, and personal pronouns weren’t used. Pagination and order of pages. The page number should appear at the top of every page, either centered or at the right margin. And the order of pages should be as follows: title page abstract body references appendices footnotes tables figures 2. Evaluate your paper for supporting parallels. When writing a paper it’s easy to simply jot ideas down as they pop into your head without concern for their relationship to your main topic. When editing, you need to ensure that all of these ideas marry up and parallel one another. For example, does your thesis parallel the concluding paragraph? The conclusion needs to support the exact position of the thesis without conditions or qualifying statements. Also, your topic sentences should reflect the points in your thesis. If your thesis states that A, B, and C are qualities found in D (D being your thesis), then you need to commit the appropriate space to analyzing A, B, and C in order to support your claims. And, any quotes used within your paper need to be scrutinized to ensure they’re supporting your topic sentences, which in turn support your thesis. The thread of your subject needs to run all the way through the fabric of your paper. 3. Mind your words. An academic paper is meant to be read by peers and professionals within a given field, so the use of technical terms and industry verbiage is an encouraged and accepted practice. Avoid the common mistakes that detract from your authority or professionalism – spellcheckers will miss homonyms and the meaning behind your word selection, so take the time to edit carefully for Common Errors in English Usage (Paul Brians). Some of them are: Improper use of plurals and possessives. Confusing effect and affect. Making up words when there are plenty of good ones available. Not knowing the accurate meaning of the words you use. Use of slang or jargon. Not using appropriate technical words and terms. Use of contractions. Abbreviations. Avoid them and spell out your words. However, acronyms are preferable after they’ve been spelled out the first time used. This article from the University of Pennsylvania is well worth reading, covering these points and more, in detail. 4. Cut down on wordiness. An academic paper is formal in nature, but it doesn’t have to be stuffy or boring. Apply the following writing and editing principles for effective communication of your ideas. Write from an outline. This gives structure to your thoughts, so your writing is always on topic. And having structure means you don’t have to use filler words or try to â€Å"fluff† your paper. Stick to one idea per paragraph. And each idea should always be clearly related to the main idea of your thesis. Rework any lengthy sentences into clear and compact structures. Use expressive nouns and verbs to express your ideas and avoid trying to enliven your writing with empty adjectives and adverbs. Read your text out loud to determine where your prose can be made more direct and vivid. 5. Citations Bibliographies, references and citations. There’s no getting around it, they need to be included in your work. Many different formats can be used for referencing the resource material used in a paper, so it’s best to pre-determine what the preferences and guidelines are for each one. In essence, they all require a minimum of information to allow others to locate the source material you’ve cited: A bibliography requires the author’s name, title of the book and date of publication. A journal article must include volume and page numbers. Conference papers need the title of the conference, page numbers and details of publication. Your paper will need to have a reference for every source you mention so that peer reviewers and those who mark your work will be able to easily access your support documentation. Without them, your credibility and marks will suffer. It’s a valuable detail that needs to be respected. 6. Proofread To be effective, your academic paper should be polished and professional in every aspect. And nothing says â€Å"amateur† quite like misspelled words, sloppy punctuation and grammatical mistakes. Don’t count on a spellchecker to do this for you as there are simply too many instances where words and errors are overlooked for any number of reasons. And there you have our 6 best tips for editing an academic paper. Use these ideas to give your work every opportunity to stand out and be noticed amid the competition.

Free Essays on Paul And His Views On Marriage

Paul and His View on Marriage This article, â€Å"Paul and How He Radically Redefined Marriage†, was written to discuss Paul’s drastic view on marriage and how it affected the Roman sexual revolution as well as the emerging Christian movement. The writer, Roy Bowen Ward, analyzes the views on marriage and sexual pleasure between different groups such as the Roman Knights and the Stoics. At the beginning of Christianity, the Roman Empire was having a hard time controlling the rate of people that have chosen to stay single. The Roman tradition was that marriage was a duty, and was endured only for the sake of obtaining heirs. Prostitutes satiated sexual desire, since it was commonly believed that it could not be possible between husband and wife. This led many people to remain unmarried, in order to pursue a lifestyle of sexual pleasure free of responsibility. While other more conservative groups, such as the Stoics, supported marriage, but opposed sexual pleasure except for procreation. Again st either backdrop, Paul’s view on marriage can be considered extreme, since it states that sexual desire was to be quenched only in marriage. This is indeed odd because the need to quench sexual desire was the reason many Romans did not marry. Paul also apparently does not recommend marriage for the reason of procreation. This is because he sees the purpose of obtaining heirs irrelevant on the grounds that the world will soon come to an end. Another drastic view of Paul’s is that the husband and wife are equal partners in marriage when it comes to receiving and obtaining sexual pleasure from each other. Since the Stoics, as well as other Roman philosophers believed that the wife was there only to serve the husband, Paul can be seen as the more liberal in his opinions. To summarize, Paul’s preference was for unmarried people to remain unmarried, since this was a way to exercise self-control, a virtue given to some by God. Paulï ¿ ½... Free Essays on Paul And His Views On Marriage Free Essays on Paul And His Views On Marriage Paul and His View on Marriage This article, â€Å"Paul and How He Radically Redefined Marriage†, was written to discuss Paul’s drastic view on marriage and how it affected the Roman sexual revolution as well as the emerging Christian movement. The writer, Roy Bowen Ward, analyzes the views on marriage and sexual pleasure between different groups such as the Roman Knights and the Stoics. At the beginning of Christianity, the Roman Empire was having a hard time controlling the rate of people that have chosen to stay single. The Roman tradition was that marriage was a duty, and was endured only for the sake of obtaining heirs. Prostitutes satiated sexual desire, since it was commonly believed that it could not be possible between husband and wife. This led many people to remain unmarried, in order to pursue a lifestyle of sexual pleasure free of responsibility. While other more conservative groups, such as the Stoics, supported marriage, but opposed sexual pleasure except for procreation. Again st either backdrop, Paul’s view on marriage can be considered extreme, since it states that sexual desire was to be quenched only in marriage. This is indeed odd because the need to quench sexual desire was the reason many Romans did not marry. Paul also apparently does not recommend marriage for the reason of procreation. This is because he sees the purpose of obtaining heirs irrelevant on the grounds that the world will soon come to an end. Another drastic view of Paul’s is that the husband and wife are equal partners in marriage when it comes to receiving and obtaining sexual pleasure from each other. Since the Stoics, as well as other Roman philosophers believed that the wife was there only to serve the husband, Paul can be seen as the more liberal in his opinions. To summarize, Paul’s preference was for unmarried people to remain unmarried, since this was a way to exercise self-control, a virtue given to some by God. Paulï ¿ ½...

How did major discoveries in physics change the course of chemistry Term Paper

How did major discoveries in physics change the course of chemistry and interpretations of the discoveries - Term Paper Example This led to more complex applications that have improved humanity’s standards of living besides drawing a clear distinction between man and other animals, which the latter do not possess such kind of heightened intellectual capacity. Some of the early major physics discoveries or developments that have greatly impacted humanity’s life comprise those of Isaac Newton and Faraday whose respective theories’ contributions are still evident today (Heidarzadeh, 2008). This is especially in the current world where some technological inventions trace their roots from laws these scholars brought forward, though due to certain sophistications unveiled by incumbent scientists appear as if they are completely new. Theme/Thesis: Therefore, this paper will critically highlight diverse major scientific historical discoveries with much emphasis on electromagnetism and thermodynamics unveiled by early inventors and controversies that characterize them even though their respective contributions led to major breakthroughs evident today (Heidarzadeh, 2008). ... They have either cold and hot or wet and dry characteristics (Woody, 2008). Based on this expounding, Aristotle without doubt assumed all other things irrespective of their minor compositions each represent a unique homogenous substance though later he came up with a fifth category calling it â€Å"aether† (matter that occupies universe). Based on the aether hypothesis, this category comprised of â€Å"incorruptible† things whose existence is eternal besides being devoid of clear sign of aging (Heidarzadeh, 2008). This based on Aristotle is untrue because he contended the four matters are basic compounds of an individual except the fifth category (Woody, 2008). The four elements during creation were in proportion with each person’s magnitude though there is no evidence of unit quantities meant for given sizes of human beings. The most intriguing aspect concerning his theory was how he contended the four elements were unique or pure but did not exist anywhere secl uded or being on their own except in combined form (Woody, 2008). After the invention of this theory for approximately 2000 years, it found numerous applications in both philosophy and other scientific related fields like physics as well as chemistry (Woody, 2008). Earth despite the scholar citing is a unique element comprises of numerous aspects including rocks and minerals similar to H2O, which based on the current scientific knowledge has elements of Hydrogen and water (Heidarzadeh, 2008). This is completely confusing because based on the current chemistry; it states an element is any substance having a homogenous material whose alterations is only by subjecting it to a chemical process or physical disturbance. This is either to gain or lose certain amount of material

Colonial history US History Research Paper Example | Topics and Well Written Essays - 500 words

Colonial history US History - Research Paper Example This information has been gathered over the past seven days through intelligence by the forces. Relevant sources inform that there is news spreading through the countryside that some leaders had strayed in Lexington, and had weapons stored in Concord for purposes of destabilizing the crown. General Gage who sent his aides to town in the past four days organized this intelligence gathering; hence, the militias were aware of Gage’s mission and intelligence plans. Therefore, they had established a communication system so that they could know in advance when the government’s forces were coming (â€Å"The Battle of Lexington† 310). This was made to ensure that their military supplies were safe. The militia is said to be under the command and organization of sympathetic colonialists Samuel Adams and John Hancock. One of the militia’s comrades Paul Revere had organized a communication system of alerting the militia of the military’s coming and actions. On 19 April, upon spotting the British army, he used two lanterns as a signal of the British forces approach to seize the military equipments in Concord. However, aware of the generals interest in the town, the militia were said to have moved their equipment to other towns away from Concord (â€Å"The Battle of Lexington† 310). Word has it that he rode while signaling the lanterns from the north church across the Charles River. Revere and Dowse hurriedly rode their horses to the west of the town to sound the warning of the British arrival. The other messengers awakened the town by using the church bells, sounding of drums and firing shots to call everyone out. The town was suddenly running up and down from the alarms; moreover, John Parker who lined them up as the warning continued organized the militia. The militia’s actions are likely to mark the beginning of a revolution against the crown; this is expressed by the events that happened before the shot that was heard around Lexington and people say was

Human Resources Essay Example for Free

Human Resources Essay Employees are always considered an asset to the organization. However organizations can never estimate what amount of this asset is required. Usually the number of employees is either higher than wanted or lower than wanted. Thus to cope up with either surpluses or shortages organizations have a number of methods that are as follows: To manage shortage of employees The first and foremost method to slash shortages is recruiting more permanent employees. This increases the number of workforce as required by the organization. However increasing new employees increases costs for the organization as well. Another method to overcome shortages is to retain employees within the organization who are retiring and offer them added incentives on a late retirement. Similarly another approach to lower down costs and still come over shortages can be to hire retired individuals again on a part time basis. This helps the organization to meet the shortage requirement in an efficient manner as no training is required and also the part time wages are low. Another approach can be to reduce turnovers by providing benefits such as premium pay etc. This is an effective way to retain old employees but can elicit a bidding war which the organization might not be able to control for a long time (Caruth, 1997). Over time and subcontracting is also a good way to deal with shortages. Sub contracting is an expensive procedure but obviously for a short time the company could afford to contract employees. Temporary hiring is also an option and is somewhat similar to sub contracting. Redesigning the job processes so that lesser employees are required is also a way to deal with shortages. This method though requires training so that employees adapt to the new job design and are comfortable with it and doesn’t result in heavier workloads and lowering down the talent level. To Manage Surplus of employees Surpluses are easier to manage then shortages. Stopping the hiring process, no replacements of those who leave, layoffs, offering early retirements etc are one of the most commonly used downsizing techniques (Mathis, 2004). Downsizing activities however have a negative effect on existing employee’s motivation and thus are usually avoided by most organizations. By introducing the shift system, number of hours worked can be reduced and efficiency of employees can be increased. Similarly, outsourcing or temporary employees shouldn’t be hired as there is already a surplus. To lower down costs, the company can either cut down pays across the board or switch to a variable pay plan (number of hours worked multiplied by per hour rate). In either way those with a lower pay or those who work lesser hours will prefer finding a new job that pays them more. Training is also a good way to deal with surpluses. Train half of the employees at a given time and let the other half work then train the later half and let the first half work. Though this is also something expensive and in the long run of no benefit to the organization. Voluntary severance is also another way in which you ask employees to volunteer if they want to leave the organization. Another way to utilize abundance of employees is by expanding operations. Though a firm cannot expand operations overnight nor it can expand them just to accommodate extra employees when there is no need of an expansion. Job Description My current job is as a sales and marketing executive at a technology corporation. I report directly to my sales and marketing director. The basic purpose of my job is to plan and carry out product activation and brand awareness activities in order to increase and sustain sales of my company. The core responsibilities of the job include developing and maintaining a database of customers and potential customers, to plan and carry out sales activities, develop new ideas, keep a track of sales performances, provide management with relevant information, frequently research on the market, the competitors and the customers in order to cope up with the changing needs, make connections with clients for business and organizational development, conduct training sessions to pass on my learning, skills and knowledge to my juniors. Apart from these I have to readily keep my colleagues up to date with all relevant information so that the department is on the same page in meetings or conferences. Communication is one of the foremost things in my job and I have to take care that relevant information reaches the pertaining individual on time. Redesigning the job description In order to redesign my job description following the exhibit I think the first thing that should be focused upon is that the job shouldn’t be monotonous as it is in the above mentioned case. The duties should vary from hard to difficult and from usual to unusual. Skill variety should be a basic part of it. This will lead to an increase of interest towards the job and thus will increase my motivation. My performance will also be definitely improved as I will be learning something different every time and this will be adding to my experience and skills. This will also alleviate the redundancy in my job to some extent (Tanke, 2000). One thing that I feel is lacking in my job is the power of making decisions on my own. As already mentioned I report to my director. At times he is not in the field and he does not have the true picture. In such cases a delay in decision making can be costly for the organization. Thus sales executives should be given the autonomy to at times make decision on their own which can benefit the company. Obviously everyone knows that wrong decision will result in losing the job. So every employee will definitely think for the best of the organization before taking any actions. Employee empowerment results in increasing employee confidence and provides them with new experiences particular to dealing with responsibilities. In turn, employees are satisfied with their jobs, feel a relationship with the organization and get a morale boost. One way to make an employee feel important is to provide feed back. Feedback tells the employee if their work is appreciated or not and in what areas they need to improve. If my director gets feed back from a client on any activity that I planned then it should be known to me as well. Apart from this there should be a little more flexibility in the management attitude so that they also understand that every employee has different needs (Tanke, 2000). Like my job could be more exciting if the management does not keep me sitting in the office just to fill in the hours an employee has to be on his seat. It would be beneficial for both if I am out in the field and monitoring and assisting in the sales activities. All these steps will definitely improve performance, motivation and satisfaction.

Oppression in Jane Campion’s The Piano Essay -- Jane Campion The Piano

Oppression in Jane Campion’s â€Å"The Piano† Jane Campion’s â€Å"The Piano† relates the story of a Scottish woman who is sent to New Zealand, during the Victorian Era, for an arranged marriage with a farmer. Ada voluntarily gave up speaking at the age of 6 and communicates by either signing for her daughter, writing on a small paper tablet around her neck, or, more joyously, through playing her piano. After a long and arduous journey with the piano, Ada is forced to leave it on the beach where her boat landed. Left without her musical passion, Ada must learn to adapt in very male world. A native white man who has adopted the culture of the Maori Indians named Baines quickly discovers what the abandoned piano means to Ada. Baines secures the piano by trading 80 acres of land to the farmer and husband of Ada, Stewart. After getting the piano back to his home, he employs Ada to give him lessons, but really wants to have sex with her in exchange for the piano. Her passion for the music allows for this and an affair is born. The affair is discovered by Stewart and he goes irate eventually cutting off Ada’s forefinger in a backwards attempt to win her love. When he realizes the futility of winning her love, Stewart sends her off with Baines. On the boat to a new home and life, Ada insists of getting rid of the piano and almost commits suicide as the piano sinks to the bottom of the ocean. This movie is beautiful to watch, yet difficult. It is raw, yet the cinematography is breath...

Bpo Philippines Essay

INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS Aileen S. Alava* Facing high expectations as the newest â€Å"sunshine industry†, the call center industry in the Philippines appears to have dimmer prospects in the coming years. Having experienced rapid growth from 2000 to 2003, the industry experienced a slowdown in growth from 2004 to 2006, raising the question of how sustainable the country’s competitive advantage is against neighboring competitors such as India and China. This paper uses Porter’s Diamond Model to analyze the factors resulting in competitive advantage between nations, and provides industry player and market information on the Philippine call center industry, as well as updates on how the industry’s participants are seeking to address the industry’s challenges. I. INTRODUCTION The call center industry is heralded as the newest sunshine industry in the country, earning around US$1.8 billion in 2005 alone, with revenues forecasted to reach US$5.3 billion by year 2010. Employment for this sector has more than doubled every year, from 2,400 agents in 2000 to 150,000 in 2006, and is expected to reach 300,000 full-time employed agents in 2010. The Philippines is among the top locations in the world for outsourced call centers. An SGV industry report states that in 2005, the Philippines’ share of the global call center market is 3% and 31% for the Asia Pacific market. By 2010, industry leaders target 6% global market share and 51% Asia Pacific market share. II. FRAMEWORK AND METHODOLOGY What will give Philippine call centers an advantage over call centers in other countries, such as those in India, China, Malaysia, Singapore? Michael Porter‘s Diamond Model defines competitive advantage between nations as the outcome of four interlinked factors: 1) firm strategy, structure and rivalry; 2) demand conditions; 3) related supporting industries; and 4) conditions affecting the key factors of production within the nations. This paper aims to discuss the competitiveness of the Philippines using this framework. Desk research was conducted to obtain secondary industry data on local and global call centers, while interviews _________________________________ with call center managers provided insight on opportunities and challenges within the industry. The role of government will also be discussed in this paper. Industry developments show government policies such as tax incentives and relaxation of property laws contributed to the industry’s growth. Strengthening of government support for primary education is crucial to the sustainability of the Philippines’ competitive position. Insufficiency in primary education is threatening the Philippine advantage as local players face difficulty meeting global demand with local supply of qualified call center agents. * Assistant Professor of Information Systems Management, College of Business Administration, University of the Philippine-Diliman. 2 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS III. CALL CENTER OUTSOURCING A call center is a business operation handling multiple types of customer-oriented functions such as marketing, selling and servicing, through multiple channels of customer interaction such as electronic mail, the World Wide Web, electronic messaging, voice messaging, fax messaging, and traditional mail. Call centers serve various stakeholders of an organization: from prospects to customers, suppliers to competitors, as well as distributors, partners, and employees. The term â€Å"call center† is used as a collective term to refer to these operations for the reason that the primary means of contact facilitated by these businesses are telephone calls. Call centers are categorized as Business Process Outsourcing companies or BPOs. BPOs also include medical transcription, IT support, animation, software development, financial accounting and payroll processing companies. Outsourcing in the Philippines arrived at the heels of successful deregulation in the telecommunications industry. Intense competition spurred massive investment in technology and skill among Philippine telecommunications companies, leading to innovation, quality improvement, and price competitiveness in services. The Philippines is no stranger to foreign arrangements of this kind. The semiconductor industry, one of the leading export sectors in the country, started in much the same way. From the early 1970’s to mid 1980’s this sector experienced dramatic expansion, growing at an annual average rate of 53%. International factors also impelled growth in the form of transnational companies from the developed economies (e.g., US, Europe, Japan) locating offshore plants in developing countries (e.g., Philippines, Vietnam, Singapore) for the most labor-intensive phases of semiconductor manufacturing. As with the call center sector, the Philippines’ main advantage in semiconductors is cheap and literate labor. Government response to further incite export activity in semiconductors is similar to regulatory mechanisms implemented in the call center industry today, such as the establishment of freeport zones, the relaxation of tariffs and duties on imported technologies, and the permission to employ foreign nationals. Agreements in the semiconductor industry during its period of rapid growth were covered by subcontracting arrangements. Today’s global trend for â€Å"off-shoring†, or offshore outsourcing, has very little difference with subcontracting. Offshoring is the arrangement by which one company contracts with service providers located outside the country for services that could also be or usually have been provided inhouse. Outsourcing business processes to remote locations is made possible by advancements in the telecommunications sector in the outsourcer countries. Low labor cost and improved connectivity resulting from technological advancement and deregulation in the telecommunications sec tor in the servicing countries (e.g., India, China, Malaysia, the Philippines) have made offshore outsourcing attractive from an economical standpoint. The costs of operating a call center in the Philippines, for example, is reportedly 40% lower than in the United States (55% cost savings from labor less 15% incremental cost from travel and telecommunications requirements). Offshore outsourcing in general brings in around 25% to 50% in cost savings. Globalization and its societal effects have made manageable the challenges of crosscultural communication: many offshore destinations have a Western heritage and almost all are exposed to Western culture – pop culture, even – through the internet, cable television, and other entertainment media, e.g., movies, books. The difference in time zones between the servicing and the served countries (e.g., the United States, the United Kingdom) are addressed through alternate six- to eight-hour shifts in the day, enabling call centers to maintain 24-hour service agent availability. While incremental costs are incurred for perfunctory risk management expenses, e.g., AILEEN S. ALAVA 3 hazard pay, etc., the total cost of operating a call center out of India or the Philippines are still lower compared to the cost of operating out of the US or the UK. IV. THE PHILIPPINE CALL CENTER INDUSTRY An IT-Enabled Services briefer from the Board of Investments in 2007 states that there are an estimated 146 call center companies in the Philippines. Call center companies should be distinguished from call center sites. A â€Å"site† is a facility housing a call center operation and a call center â€Å"company† may operate multiple sites. Sykes Asia, for example operates five sites in the Philippines while People Support operates four. There are three categories of call center companies: ï‚ · Foreign-owned call centers with Philippine subsidiaries. These are call centers owned by foreign companies, usually from the United States, that have branched out to offshore outsourcing. Insourced call centers of large multinational corporations. These are operations that are dedicated to the parent companies and whose objective is to bring competitive advantage by transforming an erstwhile internal backoffice function into one that is re venuegenerating. Filipino-owned call centers. These call centers are wholly owned by Filipino entrepreneurs or corporations (e.g. Smart, PLDT, Globe, etc.) that seek customers from the United States, Europe and Asia, particularly from Japan and Singapore. ï‚ · ï‚ · Estimates from the Board of Investments (BOI), the Commission on Information and Communications Technology (CICT) and the Business Process Association of the Philippines (BPAP) report the demand for call centers to reach anywhere from between 30,000-50,000 new agents hired in the Philippines per year from 2007-2010. Figure 1 Employment in Contact Centers 350000 301,000 300000 262,000 250000 218,000 200000 168,000 150000 112,000 100000 50000 0 2004 2005 2006 2007 2008 2009 2010 *2006-2010 from BOI/CICT/BPAP Forecast 64,000 331,000 Source: Board of Investments, BPAP 4 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS The success of call centers worldwide is attributable to the growth of outsourcing as a profitable business model. The BOI estimates that 2006 revenues in business process outsourcing (which includes other IT enabled services such as medical transcriptions, animation, and back office transactions processing) amounted to US$3.67 billion, and projects revenues to jump upwards 40% to reach US$4.79 billion this year. Joint forecasts from the BOI, BPAP and CICT predict that there will be 343,000 new outsourcing jobs this year (of which 64% or 218,000 will be in call centers), a 40% increase from the number of new outsourcing jobs in 2006 of about 244,000 (of which 69% or 168,000 were in call centers). Figure 2 Annual Employment (2004-2010) 1000000 900000 800000 668,1 26 920,764 700000 600000 479,51 9 500000 400000 244,675 343,01 3 262,000 21 8,000 1 68,000 99,300 64,000 1 2,000 1 301 ,000 331 ,000 300000 200000 100000 0 2004 1 62,250 2005 2006 2007 2008 2009 2010 BPO Industry Contact Centers Source: Board of Investments, BPAP The Philippine call center industry is estimated to have earned US$2.7 billion in revenues in 2006, a growth of 50% from 2005’s earnings of US$1.7 billion. The Department of Trade and Industry expects actual 2007 returns to be close to US$3.5 billion, a further growth of 30%. AILEEN S. ALAVA 5 Figure 3 Annual Revenues of Contact Centers (in US$M) Source: Board of Investments, BPAP It is interesting to note that service income of ten of the top call centers1 in the country (Ambergris, Convergys, Cyber City Teleservices, Sitel, E-Telecare, iContacts Corporation, InfoNXX, Parlance, PeopleSupport, and Sykes Asia) together account for more than 20% of the total revenues of the entire sector. Figure 4 Comparative Annual Revenues of 148 Call Centers vs. Ten Top Call Centers (2004-2005) 6 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS Activity in the industry is apparently dependent for the most part on a small number of big players. The BOI in its IT-Enabled services briefer (2007 release) states that it expects upward momentum to continue until 2010. Sources of growth have been identified as follows: a) Expansion from established call centers such as PeopleSupport, Sykes, eTelecare, PLDT, ClientLogic, InfoNXX, Citibank, Ambergris, Accenture, IBM, Caltex and HP b) Entry and consequent expansion, i.e. addition of new sites, etc. of global players such as Dell, HSBC, JP Morgan, AIG, Convergys, TeleTech, Sutherland, Deutsche Bank, and NetSuite. c) Next wave of entrants such as Accor Reservation, MiSYS, Siemens, Ericson, Alsbridge, Virgin Atlantic, Philips, Emerson, Capital IQ, DDC and Kanbar. Growth in the sector follows expansion the operations of big players. In the last two years, both Sykes Asia and People Support have established new call center sites while still others have added new projects and accounts. These activities and the influx of new players have resulted in revenues steadily growing until 2006 and expectations for further expansion until 2010. While growth is continuous, however, a slowdown in the rate of growth is expected starting 2005. Figure 5 Annual Revenue Growth Rate of Contact Centers 220.0% 166.7% 133.3% 114.3% 75.0% 50.0% 29.8% 20.2% 14.9% 10.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 *2006-2010 forecasted by BOI/CICT/BPAP Source: Board of Investments, BPAP Slowing growth in the last two years after the steep increases of 2003 to 2004 indicates that the call center industry in the Philippines is now approaching maturity. Sales and earnings expansions of the past years resulted from the Philippines’ cost advantage over other countries. The passage of time, however, may erode this advantage as China and other Southeast Asian countries threaten to eat into the Philippines’ market share with better cost or quality AILEEN S. ALAVA 7 offerings. The challenge for the industry is to extend growth by improving the competitive dimensions where the Philippines is weak or by adjusting industry targets to create new competitive advantages. The Global Arena The Asia Pacific region outperforms other regions such as Eastern Europe, South America and Africa. Japan and South Korea are seen to increase nearshore outsourcing investments in low-cost, labor-rich neighboring China while Southeast Asian countries benefit from close-toWestern cultures, open economies, and advanced technologies for a similar cost advantage. In 2005, Frost and Sullivan forecasted that call centers in Asia will grow from 21,360 in 2004 to 39,248 call centers in 2011, at a compound annual growth rate of 9.1% Figure 6 Forecast Growth of Call Centers in Asia Pacific *at a Compound Annual Growth Rate of 9.1%, as forecasted by Frost and Sullivan. More recent studies predict faster growth rates. A 2006 Asian Contact Center Industry Benchmarking Report assessed the industry to be in a period of strong growth. The study conducted on 747 contact centers in the Philippines, India, Singapore, China, Malaysia and Thailand estimates that by 2007, the total 576,000 seats in the countries studied would increase to 704,500, a growth rate of 23%. Among the countries in the study, the Philippines has the highest forecasted growth rate. By 2007, it is expected to grow by 33%, Singapore and Malaysia by 32%, China at 22% and India by 16%. Of the Asian destinations, India is the top choice, with other nations such as the Philippines, Malaysia, Singapore, and China following closely. The Philippines, having an American-influenced culture, a proficiency in English comparable to India without the heavy accent, and a skilled labor force, was considered the greatest threat to Indian domination in this sector. However, recent years’ developments in other competitor countries such as China, Malaysia, Thailand and Indonesia coupled with a strong peso and deficiencies in the local supply of qualified call center agents have weakened the Philippines’ advantage. The A.T. Kearney Global Services Location Index in 2007, a survey conducted to measure the relative attractiveness of offshore locations with regard to financial structure (40%), people 8 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS skills and availability (30%), and business environment (30%), has ranked the Philippines the 8th most attractive country for offshoring in 2007. The top twenty-five countries are as follows: Figure 7 Source: AT Kearney 2007 Global Services Location Index AILEEN S. ALAVA 9 The 2007 study saw the Philippines decline from its 4th rank from AT Kearney’s last GLSI survey which was conducted in 2005. The top twenty five locations then were as follows: Figure 8 Source: AT Kearney 2005Global Services Location Index The Philippines’ drop in the AT Kearney rankings is attributed to the appreciation of the peso and growth in the call center industry which has driven up labor costs in terms of the US dollar, by as much as 30%, according to AT Kearney’s GSLI 2007 highlights. In other areas of performance, the country improved slightly, particularly in infrastructure, industry size and language skills. In contrast, Malaysia, Thailand, and Indonesia have either retained their rankings or moved up the index. Slower industry growth rates in these countries have tempered the effects of inflation on labor costs. 10 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS Figure 9 Philippines’ Offshore Attractiveness, 2005 & 2007 A. T. Kearney Findings 6 5 4 3 2 1 0 Financial Structure Business Environment People and Skills Availability 2005 2007 3.6 3.3 2005 2007 1.2 1.0 2005 1.0 2007 1.3 Ratio of Categories – 40:30:30 Philippines’ Score 2007 2005 Financial Structure Compensation Cost (8) Infrastructure Cost (1) Tax and Regulatory Cost (1) 7.1 7.7 0.7 0.8 0.3 0.5 8.10 9.00 Philippines’ Score 2007 2005 Business Environment Country risk / Economic and Political Environment (6) Country Infrastructure (2) Cultural Adaptability (1) Security of Intellectual Property (1) 1.9 1.2 0.7 0.3 4.1 1.8 0.7 0.8 0.2 3.5 Philippines’ Score 2007 2005 People Skills and Availability Relevant experience / IT BPO Industry size/quality (4) Size and availability of labor force (2) Education (1.5) Language (1.5) Attrition risk (1) 1.2 0.7 0.9 1.2 0.2 4.2 0.9 0.7 0.9 0.7 0.6 3.8 Source: AT Kearney 2005 and 2007 Global Services Location Index AILEEN S. ALAVA 11 India Among the top contenders for offshore locations, India is the country with the most experience. The emergence of call centers as an opportunity for national growth came upon deregulation in the telecommunications industry in the mid-1990’s, much like the Philippine experience. The outsourcing sector, the first participants of which were medical transcription service companies then followed by data management and customer support providers, began to take root in the late 1990’s. As in the Philippines, the first operations consisted of support subsidiaries of multinational companies servicing the parent company. Low-cost and highly-skilled labor, significant improvements in IT infrastructure, and a positive business environment spurred by industry organizations such as the National Association of Software and Services Companies (NASSCOM) propelled exponential growth for the industry in the years to follow. The NASSCOM estimates yearly growth of 37% for the outsourci ng segment with the call center industry leading the sector. Call centers comprised 46% of the total US$4.6billion revenue the outsourcing sector earned in 2005. India is the strongest contender in the sector and is often tagged as the world’s first-choice in offshore outsourcing. In 2005, it has 8% global market share and 68% market share in AsiaPacific. The Philippines’ greatest advantage over India is in language skill. American English being the dominant lingua franca in sales and support transactions coursed through call centers, the Philippines has a culture that is closer to the West and an English tongue that is the easiest to understand in the whole of Asia, partly to exposure to American television and pop culture, as well as English being the medium of instruction in all education levels. It has been observed that India’s pool of talent has the advantage in technical, specialized occupational skills while the Philippines’ competence is in liberal arts, which provides more general knowledge as well as capabilities needed for back-office processing, e.g., communication skills, and cultural adaptability. Increased global competition in the call center sector has led to efforts to expand the portfolio of services of the Indian IT-enabled services sector. NASSCOM reports that the last three to four years in India have been a period of diversification. India’s BPO companies have expanded to higher-value processes through vertical integration towards non-voice-based services such as back-office processing and content development. In 2005, customer care services comprised 34% of total BPO revenues in India, compared to 69% in the Philippines. 12 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS Figure 10.1 Figure 10.2 Sources: DTI (Philippines) , PriceWaterhouseCoopers (India) China China is the preferred choice as a call center location for companies targeting South Korea (attracted by ethnic Koreans living in China) with which it has the closest cultural ties. China is the only other country in the world that poses a threat to India as far as size and cost of labor supply is concerned. The yearly cost of operating a call center seat in China is the lowest in Asia. Table 1 Comparative Annual and Hourly Costs per Call Center Seat in China, India, Malaysia, the Philippines, Singapore and Thailand in USD ($) Annual Cost per Hourly Cost Seat per Seat 13,543.00 3.62 15,872.00 4.24 34,779.00 9.29 18,086.00 4.83 66,998.00 18.46 18,527.00 4.95 China India Malaysia The Philippines Singapore Thailand Source: callcentres.net China’s cost advantage, however, is dampened by its deficiencies in Englishspeaking manpower. In this regard, China cannot as of yet compete head-on with India and the Philippines in the global outsourcing market. University enrolments however have grown 25% in recent years which increased the country’s potential to compete. China’s entry to the World Trade Organization has spurred the inflow of capital as well as Western influence and analysts predict that in due time the labor supply in China AILEEN S. ALAVA 13 will be comparable to India in size as well as in skill. Singapore Despite high labor costs, Singapore enjoys a comparative advantage from reliable bureaucracy, excellent technical infrastructure, superior educational systems, political and economical stability, and stringent enforcement of intellectual property laws for information and data security. Singapore outsourcers provide high-value services differentiated from lowvalue, back-end processes provided by other Asian countries. To take advantage of this market niche, Singapore outsourcers market advanced offshore functions such as basic research, robotics, healthcare and medical diagnostics. Singapore companies in turn outsource lower-value operations to India and China to gain cost advantage. Malaysia What Malaysia lacks in manpower (its population is significantly smaller than India or China and thereby cannot meet the same economies of scale) it makes up for in advanced infrastructure. Malaysia is second only to Singapore in IT competitiveness rankings between countries in Southeast Asia. Strong government support is apparent in efforts such as the Multimedia Super Corridor project, which includes the development of infrastructure in what they have called â€Å"intelligent cities† such as Cyberjaya and Penang Cybercity, where major IT leaders such as IBM and Motorola have already located their regional offshore service centers. Latin American Countries Latin American countries such as Brazil, Chile and Mexico enjoy the advantage of being â€Å"near-shore† destinations, or offshore servicing countries close to the served country, this being the United States. Near-shore destinations are in the same time-zone as most customers, thereby lessening the need to arrange multiple 8-hour shifts in the day as well as the need to invest in additional expenses for hazard pay, safety insurance and the like. The A.T. Kearney study found Brazil has the best labor skills in the region, Argentina has the cost advantage, while Chile has the best business environment (e.g. it has, for instance, supplemented agreements with US and European companies with IP infringement penalty clauses). Nonetheless, perhaps the primary advantage of the region in general is the vast availability and incomparable quality of its bilingual (English and Spanish) call centers, much in demand in the United States. Eastern European Countries Eastern European countries such as the Czech Republic, Poland, Romania and Hungary are possible choices for Weste rn European countries as a near-shore destination. Eastern European call centers provide cost, language skill, and time-zone advantages. Multilingual call centers for the multilingual European market can be easily and efficiently set up in Eastern Europe more so than in Latin America or Asia. Customers from Germany and the United Kingdom moreover may prefer Eastern European call centers most particularly for its bilingual workforce: citizens in most Eastern European countries can speak both German and English. Reportedly, however, Eastern European countries, most particularly Russia, need to upgrade telecommunications infrastructure to compete with the other regions as well as to comply with European Union requirements. 14 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS V. CONCLUSION The factors affecting firm strategy, structure and rivalry involve the services offered by local firms, and how competitive locally provided services are against those provided by other countries. Primarily, this involves why the Philippines is chosen by call center companies when making the call center location decision. The factors involving demand conditions involve the evolving needs of the global market for call center services, ranging from the basic service of answering inquiries based on predefined scripts to the more complex service of providing technical assistance and support. The sufficiency of related supporting industries will involve the state of local educational institutions, real estate, transportation and retail sectors and how these sectors contribute to sustain the growth of the local call center industry. Finally the conditions affecting the key factors of production, such as local skilled labor and mission-critical technology, will also be discuss ed. Firm Strategy, Structure and Rivalry Figure 11 Factors Affecting the Call Center Location Decision As earlier mentioned, the first factor affecting competitiveness is firm strategy, structure and rivalry, which primarily contributes to why the Philippines is chosen by call center companies when making the call center location decision. The offshore location decision is influenced by a number of factors and it is against these criteria that India, China, the Philippines and other countries are evaluated. It follows that it is in these attributes that the Philippines should perform for a distinct competitive advantage over the others. These factors include the following: quality and cost of labor (including technical competency and language skills), connectivity (i.e., telecommunications bandwidth) cost and reliability, mature business, regulatory and technological environments for outsourcing operations, political stability, and cultural alignment between the offshore outsourcer, the outsourcing company, and the customers to be served by the call center. Decision Criteria in Selecting an Offshore Call Center Political Stability Reliability and Cost of Connectivity Quality and Cost of Labor Cultural Alignment Mature Business Environment Among these success factors, the Philippines competes strongest in (1) quality and cost of labor, and (2) cultural alignment. It is in these two factors that exponential growth in 2003 and 2004 can be attributed. The challenge of sustaining the Philippines’ advantage in the industry can be discussed from two vantage points: first from the view of creating a distinct AILEEN S. ALAVA 15 competitive advantage and second from the view of ensuring the distinct advantage created is impervious to erosion. Threats arise from deliberate attempts by competing entities to undermine it and from developments in call center operations and technology that will shift the bases of competition. The benefit of lower cost is the Philippines’ most substantial value offering to call center investors and customers. The results of the AT Kearney survey have shown that while other factors are also significant, the global competition in the call center sector continues to be driven by cost at the present: it remains to be the most important factor in the perception of the â€Å"attractiveness† of an outsourcing location. In this regard, the country’s low infrastructure and compensation costs, as well as the provision of special tax concessions within specific zones have contributed significantly to making the country a preferred choice among investors. In addition, the results of the study also emphasized that in the Philippines, call centers were given most emphasis among the outsourcing sectors and likewise highlighted the efforts of the government to promote these services by establishing special economic zones that provide investors with freeport privileges, tax shields and holidays. Among the participants in the global call center industry, India outperforms all other countries with a combination of advantages: low-cost labor as well as a progressive educational system ensuring a continuous supply of highly-skilled employees, reliable low-cost infrastructure, supportive business government, and a wealth of management experience in the call center industry, as well as in other outsourcing services. The Philippines directly competes against India by providing labor and infrastructure at comparable rates and furthermore provides the advantage of a Westernized culture and better performance in conversational English to appeal to US-and UKbased c ustomers. Singapore has the highest compensation rates but has the advantage of good government reflected in lower costs of bureaucracy and corruption. China’s major advantage is its massive pool of available lowcost talent—only China can directly compete with India in size of available labor—however labor skills are still limited in language proficiency and management experience in the industry. What makes India a success story is the combination of multiple sources of advantage available to the call center investor. The Philippines’ current competitive advantage meanwhile is in the combination of low compensation cost and high English proficiency, and while this advantage continues to bring additional revenues and employment to the sector, growth rates have also been observed to be decreasing, apparently due to two observable trends: low acceptance rates and high attrition rates. Both low acceptance and high attrition threaten the advantages of labor availability, cost and quality of Philippine call centers. The advantage of cost over other factors, i.e., people and environment, affecting the offshore location decision is n onetheless not a perpetual one. The leveling of technical competency between the different countries through globalization and convergence of technologies as well as the homogenization of social conditions between different economies may affect the importance of cost as a success factor. The ubiquity of information available through advanced mass media and telecommunications have also brought about less cultural heterogeneity between the countries competing as call center locations. The advantage of cultural alignment is therefore not exclusive to the Philippines and, further, is one that erodes with the passage of time and the availability of communications technology. Demand Conditions Despite the low-cost labor advantage offered by offshore call centers, companies continue to look for ways to gain even more cost savings, if not from a more efficient and thereby cheaper workforce, then from automation technology. Meta Group’s technology research services group reported an increasing number of clients 16 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS choosing to implement voice-automation technology systems to handle standard, routine inquiries, e.g., account balances, product and service, payment offices, etc., instead of contracting the services of an outsourcer in a low-cost country or establishing their own call center operations offshore. The eventual outcome of this development is that, with the existence of automation technology, only customer calls requiring more complicated assistance will be routed to offshore call centers, perhaps from the Philippines or India. This direction means that customers will have higher expectations from call center agents in offshore countries. Agents will no longer be able to rely on simplified question-and-answer instructions or â€Å"scripts† to answer more complex questions that will be asked them. Industry analysts observe that, out of 100 applicants, only three to five are hired given existing skill requirements. Support services for more complex inquiries, perhaps requiring tec hnical information or instruction, will consequently require higher technical competency, as well as more than adequate communication and problem-resolution skills. Should such requirements be made necessary, it is expected that the hiring rate will be lower in the years to come, unless initiatives are implemented to enhance the skills and capabilities of existing as well as future workers in this sector. Sufficiency of Related Industries The Philippines’ weakness in information technology infrastructure threatens the ability of the country to compete where value-added services require a higher telecommunications bandwidth. Despite being one of the top offshore location choices in the world, the Philippines ranks, and has always ranked poorly in network readiness surveys, seen by most investors as measures of the competitiveness of a country in information technology. In both the 2004 and 2005 Network Readiness Index (NRI) listing compiled by the World Economic Forum (WEF), t he Philippines ranked in the lower levels: 67th in a group of 100 in 2004 and even lower in 2005 (70th place). Other outsourcing destinations fare similarly: India, the top location for offshore outsourcing is at 40th place while China, 2nd in the AT Kearney Index, is at 50th place. The WEF NRI is a measure of relative performance in the following areas: a) aspects of the environment of a given nation for development in information and communications technology (ICT) such as the regulatory regime and legal framework for ICT, and the available infrastructure; b) networked readiness of individuals, businesses and governments; and c) ICT usage by individuals, businesses and governments. The apparent inconsistency between networked readiness and other IT competency ratings for the Philippines and the remarkable growth of IT-based services, made plain by records of investment, revenue, and employment actually generated by the sector, is attributed by industry analysts to the observation that indices and rankings comparing countries with each other consider all the regio ns in the country, from the most advanced areas to the undeveloped ones. Developed countries such as the United States, Japan, and Germany have progressed to a point where the availability of telecommunications technologies and other related services in the less urbanized regions are virtually at par with that of the most industrialized areas. Developing countries are characterized by a marked difference in infrastructure and economic activity between the centers of business and the rural, residential areas. Such is the case of India, China and the Philippines where the small portion of the population living and working in the centers of business enjoy advanced technology while the rest have very limited access to even the most basic computing technology, e.g., internet access, if at all access is given them. Nonetheless, call centers in developing countries choose to locate only in the industrialized, AILEEN S. ALAVA 17 technology-enabled centers of business. Thus, they are able to employ, and at a cost advantage, the network infrastructure, hardware equipment, software and consulting services at a comparable technological level to those used by call centers in more developed countries. While it is valid that network-readiness surveys include locales in the Philippines which call centers are not considering to locate in, and that these call centers are eventually established in the industrialized, technology-enabled centers of business, it is still worthwhile considering that this shortcoming significantly limits the range of options for call center sites in the Philippines. Low infrastructure development in areas outside Metro Manila also threaten the cost advantage as call centers are constrained with only a few places to locate their operations since the location options are limited, the cost of real estate in these areas increases. While on the one hand the rise in real estate prices is seen as contributing to the trickle-effects of revenue growth in the call center sectors, on the other hand it can be seen as a threat to the country’s cost advantage as far as real estate and infrastructure costs are concerned. Factor Conditions The 2006 Asian Contact Center Industry Benchmarketing Report ranks human resource management, particularly the areas of recruitment and agent turnover, as the greatest challenge faced by Asian contact centers. In the Philippines, the consistency of supply of qualified call center personnel is threatened—as reflected in a very low 3% acceptance rate—by apparent degradation of the quality of primary and secondary education in both private and public schools. Although it has been reported that the average 10-year-and-above literacy rate in the Philippines is above 93%, literacy is not enough to ensure a position for a call center applicant. Basic English proficiency, for that matter, is considered a minimum requirement, enough for the agent to be considered for a position, but still insufficient to match the higher levels of conversational and even colloquial proficiency required for hiring. While low cost labor still works to the country’s advantage, labor on the average making up 46% of the total budget of operating call centers, such an advantage will not be sustainable if the country is not able to supply as much as is needed by steadily growing demand. While hiring is becoming more and more stringent, English proficiency in the formative levels of education remains below average. English language skills tend to diminish over time, as shown by statistics reported by the Department of Education, e.g., Grade 4 public school students show national average of 42% in English, while high school students show 30%. As English and communication subjects are required less in college, it may be expected that the level of proficiency will deteriorate more in the tertiary levels of education. Although English continues to be widely used in business, in government (at least in the high levels), and in school, programs in local mass media and entertainment are dominated by Tagalog films, making mastery of English a more difficult task for the average call center applicant. The current state is reflected in the low acceptance rate among applicants in call centers and other BPO companies. Out of every 100 new college graduates applying, only three are hired. High attrition rates and the increase in â€Å"poaching† and â€Å"piracy† of agents on the other hand threaten the low cost of labor as companies invest in benefits and compensation packages to ensure agents will not move to a competitor. In 2006, the labor attrition rate in the Philippines is reported to be 18% for full-time agents and 24% for part-time agents. India has significantly higher attrition rates, as follows: 18 INDUSTRY REPORT: THE PROBLEM OF SUSTAINABLE COMPETITIVE ADVANTAGE IN PHILIPPINE CALL CENTERS Table 2 Comparative Mean Attrition Percentage for Full-Time and Part-Time Call Center Agents in China, India, Malaysia, the Philippines, Singapore and Thailand Mean Attrition (FullTime) 17% 38% 18% 18% 16% 15% China India Malaysia The Philippines Singapore Mean Attrition (Part-Time) 29% 32% 24% 24% 21% 16% Thailand Source: callcentres.net At this rate, a job in a call center is already considered as a career in the Philippines, and not looked upon as merely a â€Å"temp† position as in the United States. Nonetheless, â€Å"poaching† or â€Å"pirating† of employees between call centers has already been observed because of the limited talent pool. Call centers are challenged to implement best practices in curbing employee attrition in the call center industry such as a flexible and conducive environment, high incentives, and training schemes, and more importantly, a career path development plan to convince college graduates that being a call center agent is not a â€Å"dead-end† type of job. The Challenge of Moving Forward The question remains as to who will bear the cost of improvements required to strengthen all factors necessary to ensure the sustainability of the Philippines’ competitive advantage in the call center industry. Some call centers have shouldered the cost themselves, o ffering free inhouse training for new hires. Still others have established joint efforts with existing universities and the Technical Education and Skills Development Authority (TESDA) to incorporate call center-oriented training requirements in their curricula and courses. Call centers have established personnel development initiatives, e.g., in-house training and evaluation, to enhance skill, and compensation and benefits initiatives, e.g., higher allowances, all-expense paid holidays and vacations, career development planning, etc., to curb attrition rates, ensure greater stability of the workforce size, and lessen the â€Å"poaching† of call center agents. More call centers are also contributing to the development of the countryside, more specifically the locations outside Metro Manila such as Laguna, Baguio, La Union, Cebu, Davao, Cagayan de Oro, Iloilo, etc. Geographical diversification, i.e., expanding call center operations to provinces, will provide more labor supply, and breathing room to answer to the intense scrambling for office space in Metro Manila. Call center operations will also encourage infrastructure development in other metro cities, with the possibility of replicating the development in the cities of Metro Manila in infrastructure and skill to the countryside areas. Another opportunity available to the sector is value diversification. India’s move towards strengthening non-voice services was not lost on Philippine ears. In its forecast towards 2010, the Department of Trade and Industry (DTI) expressed its target to increase the share of other BPO services in the total BPO revenue pie while decreasing dependence on call centers, which might now be showing signs of decline. The semiconductor industry in its peak of growth during the mid-1980’s also prompted recommendations toward diversification towards higher-value processes. At the time, the sector primarily consisted of low-level technologysupported processes, mainly automated simple assembly of semiconductor devices and product testing. Even now, industry activity in high-level AILEEN S. ALAVA 19 technology-supported activities such as wafer production and device design are still yet to reach the growth stage. The Philippines’ competitive advantage in the call center industry may be sustained through the enhancement of supply conditions, strengthening of related industries, and geographical diversification. Whether these efforts will work will be determined by two developments industry participants should take care to observe at the close of the year: first, how the market will respond to the industry’s efforts, i.e., whether the growth in demand will be sustained by continuous inflow of new contracts and whether forecasted increases in employment, facility expansion and investment will be attained or exceeded; second, how the industry will answer the demands of the market, i.e., whether the total operational capacity (as to labor supply, connectivity, technology, facility and real estate) of the call center sector will be sufficient to respond to the rise in demand. These developments will indicate whether the call center industry can reverse the tide and halt impending decline. However, the industry should be prepared should the slowdown in growth rates persist in the coming years, indicating that the country’s advantage has been weakened by the supply strength of other countries such as India or China. In this case, a prudent response that call centers should consider is to diversify into other BPO sectors such as high-value, non-voice-based services to compensate for the effects of decline in the call center industry. REFERENCES A. T. Kearney (2007 & 2005). Global services location index. Balfour, F. (2003, February 3). The way,way back office. Business Week. Bharadwaj, G., Varadarajan, P. & Fahy, J. (1993). Sustainable competitive advantage in service industries: a conceptual model and research propositions. Journal of Marketing, 57(4), p. 83. 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The semiconductor industry. Institute for Developmental and Econometric Analysis, Inc. Call center industry and the Philippine economy. Lecture delivered at the UP School of Economics. March 2006. International Customer Management Institute. http://www.incoming.com IT Matters. http://itmatters.com.ph McDougall, P. (2004, January 26). Automation takes toll on offshore workers. Information Week. NOTES 1 Selection of the ten top call center companies is arbitrary and not based on an objective ranking of financial performance. The subset was intended to illustrate industry concentration: how a small minority of ten call centers have contributed significantly more revenues to the sector than the other 138.