Upwardly mobile phone jockey… or ‘cyber-coolie’?

Thursday, November 6th, 2003

Upwardly mobile phone jockey… or ‘cyber-coolie’? describes India’s success in taking over the call-center business:

In India, which has been most successful in stealing call-centre business from the rich countries, companies teach their operators to understand American accents and imitate them. They watch American movies together, and those who can easily comprehend Sylvester Stallone’s dialogue are said to be approaching perfection. Some companies try to create an American ambience by putting little American flags on the desks and providing pizza.

India now has more than 160,000 call-centre workers and expects to have a million by 2008. Raman Roy, who runs a company called Wipro Spectramind, imagines India becoming ‘the back office of the world.’ He had 200 employees three years ago and now has 5,100. They take catalogue orders, book hotel and airline reservations, do some telemarketing, and then move up to computer help desks, insurance claims processing, various forms of accounting, and payroll management.

This is where it gets interesting though:

Not everyone finds this system admirable. Last year, a reporter for the Times of India mentioned to Roy that there are those who think these workers operate at the lowest end of the value chain. Roy replied that you can do a low-end job and then maybe move to a better job. “Without the low end, you cannot proceed to the high end.”

This controversy recently broke out in an unlikely place, the letters column of the Times Literary Supplement. After Susan Sontag praised Indians for putting their English-language skills to work through call centres, a furious professor in New Delhi denounced her for failing to see that “These poor young men and women are indeed the cyber-coolies of our global age.” In the next issue, another Delhi resident wrote that what the professor considers exploitation looks to workers like a way to acquire skills as well as income. He acknowledged that while “it isn’t much fun to persuade someone in Detroit to pay his credit card bill” (yet another function of call centres), it builds negotiating skills.

It is an iron law of international economics that the Exploitation Police will swoop down and denounce anyone who creates new jobs, particularly in relatively poor areas. The common complaint is that call-centre companies set up shop in places (New Brunswick is a good example) where they can find well-educated workers at relatively low wages. The Exploitation Police make this sound almost criminal. In fact, it’s the way capitalism has always expanded and the way that poor regions have traditionally turned themselves into less poor regions. To consider this sort of change deplorable is to miss the fact that business lives by ingenuity and perishes when it ceases to find new and cheaper ways to get its work done.

It is an iron law of international economics that the Exploitation Police will swoop down and denounce anyone who creates new jobs, particularly in relatively poor areas. I love that line.

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