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A Sydney-based internet service provider 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 some 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 that is 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 strategy would you recommend? And why?

Reference no: EM132912503

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