The concentration of purchases from one or a limited number of suppliers may be beneficial to the firm under certain circumstances. List any five of these circumstances and discuss how Dell benefits by using Indian call centres
History of Dell’s outsourcing call center to India
Dell is a well‐known brand of personal computers which are sold directly to end‐users. With the
direct sales model, Dell could save costs and became the cost leader in PC industry. Its revenue
increased from 6.2 million USD in 1985 to 62 million USD in 2009. Dell was the number one market
share in USA and globally for a long time. In order to serve a large number of customers better and
cut down costs, Dell decided to outsource call centers in India. Dell opened its first call center in
Bangalore, India in 2001 to provide technical support for customers in U.S. After that, it set up the
second customer contact center in Hyderabad in 2003 to deal with the increase in customer base.
Eventually, the third call center of Dell was opened in Chandigarh metro area in the north of India.
In recent years, call centers are one of the most popular businesses that are outsourced. Not only
Dell but also many global and famous companies such as AOL, American Express, and General
Electric have outsourced their call centers to improve their cost efficiency. Among many countries,
China and India are ideal choices for outsourcing due to the cheap and skilled labor in these
countries.
The concentration of purchases from one or a limited number of suppliers may be
beneficial to the firm under certain circumstances. List any five of these circumstances
and discuss how Dell benefits by using Indian call centres
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