Question: 2. Mini case study (10%) A Brisbane-based insurance company is facing increasing costs of delivering customer services based in Australia. The company has decided
2. Mini case study (10%) A Brisbane-based insurance company is facing increasing costs of delivering customer services based in Australia. The company has decided to move its call centre service to the Philippines, where there are many established local companies with experience in delivering call centre service for western multinational companies, including many Australian competitors. The company needs to make a strategic choice of either outsourcing its' call centre service to an independent third-party local service provider in the Philippines or building a Greenfield call centre operation (i.e., owned by the Australian company) in the Philippines. Assuming outsourcing and Greenfield will result in a similar amount of cost-saving in the long run, which 2 strategy would you recommend in order to achieve a sustainable competitive advantage? And why?
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