Hi Tech Corporation is a California based company that has contracted with a separate company in India to handle its customer service call center. Hi Tech Corporation's practice is most accurately described using the term:
a.Outsourcing.
b.Globalization.
c.Offshore operations.
d.Shared services.
Answer:C
Choice "C" is correct. Offshore operations are the outsourcing of services or business functions to an external party in a different country. Hi Tech's decision to operate its call center out of India is an example of offshore operations.
Choice "d" is incorrect. Shared services would involve splitting the cost of a service with another organization, not contracting out with a separate entity.
Choice "a" is incorrect. Although Hi Tech Corporation is outsourcing, the best description of the practice of moving their call center to India is offshore operations because the outsourced service is actually being performed out of the country.
Choice "b" is incorrect. Globalization is the distribution of industrial and service activities across an increasing number of nations. Globalization does not describe the actions of a single company.