Essays on Business Process Outsourcing at Telstra Corporation Limited Case Study

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The paper 'Business Process Outsourcing at Telstra Corporation Limited " is a good example of a finance and accounting case study. Telstra Corporation Limited regularly known as Telstra is Australia’ s biggest telecommunications as well as Media Corporation which runs services like pay television, the internet as well as mobile access, markets influence, in addition to other entertainment services and products (Telstra, 2014). Notably, Telstra is operating in more than 200 nations as well as over 1300 points-of-presence across Australia, and other parts of the world. What’ s more, Telstra surfaced from an Australian government department, but these days Telstra has totally been privatised.

Lots of transition program have been taking place to make it more directed towards sales as well as marketing under the leadership of David Thodey, Telstra’ s present CEO. To enhance Telstra service provision across the globe and in Australia, Australia’ s National Broadband Network has enforced both regulatory as well as structural alteration to the company. Australian Telecommunications Corporation (ATC) and the Overseas Telecommunications Commission (OTC) were joined into the transitory Australian and Overseas Telecommunications Corporation (AOTC) in 1992. A year later, TEL- telecommunication STRA- Australia was coined subsequent to AOTC being renamed to Telstra Corporation Limited (Telstra, 2014).

Worldwide, Telstra has carried out its business operations under the brand name Telstra; while in Australia it conducted its business under the brand name Telecom Australia until in 1995 when "the company began using Telstra as the brand name globally and locally. Still, ever since the 1990s, Telstra has experienced stiff competition from Optus, which was then Australia's second-largest communication company in addition to other suppliers in the telecommunication industry.

Thanks to the backing the company receives from the Australian government, the company has managed to hold on to the ownership of Foxtel in addition to fixed telephone lines. Telstra has in excess of 2.6 million clients for mobile broadband and roughly 2 million clients for retail fixed broadband. Statically, the company has more than 39,000 employees’ worldwide (Telstra, 2014). 2.0 outsourcing Call centres Telstra shifted almost 1,500 jobs to India under a strategy meant to make key Australia’ s technology operations more efficient in preference of overseas outsourcers. This strategy was aimed at helping Telstra reduce its IT expenditure, and the jobs were exported through contracts between Telstra as well as Infosys, Indian-based Company (Ramli & Smith, 2013).

Telstra suppliers have as well transferred their work overseas to cut costs. In the recent move, work performed by IBM was awarded to Infosys (India) in a shift that had an effect on almost 180 jobs (Cai & Kwek, 2013). These days, the dollar continues to be stretched further and further by customers, and so great competitive pressure has compelled some companies in Australia such as Telstra to cut costs by outsourcing with the intention of competing with international companies (Holt, 2011). In a modern competitive world, companies have to cut costs so as to present a service or product, and so as mentioned by Kinnie, Purcell, and Adams (2008) labour costs reduction is a suitable means of reducing production cost.

In consequence of shifting such IT jobs abroad, Telstra has experienced a reduction in cost in terms of lower costs of labour. This, as a result, will ultimately reduce the cost of the services and products to the company, the customer, and importantly the company will become more and more competitive (Schneiders, 2008).

According to Friginal (2011), the desire for prices reduction is consumer-driven, and so with intense competition drawn in the global market, companies from other countries with reducing costs of labour. The companies with reduced labour costs will compete directly with companies from Australian with higher costs of labour.

References

Cai, P., & Kwek, G. (2013, February 22). Outsourcing will deliver better service: Telstra. Retrieved from The Sydney Morning Herald: http://www.smh.com.au/business/outsourcing-will-deliver-better-service--telstra-20130221-2euby.html

Friginal, E. (2011). The Language of Outsourced Call Centres: A Corpus-Based Study of Cross-Cultural Interaction. Journal of Sociolinguistics, 15(4), 528–532.

Holt, N. (2011, March 18). Australia: Telstra’s “Project New”—another round of job destruction. Retrieved from World Socialist Web Site: https://www.wsws.org/en/articles/2011/03/tels-m18.html

Kinnie, N., Purcell, J., & Adams, M. (2008). Explaining Employees' Experience of Work in Outsourced Call Centres: The Influence of Clients, Owners and Temporary Work Agencies. Industrial Relations & Labor , 50(2), 209-227 .

Ramli, D., & Smith, P. (2013, February 22). Telstra tipped to outsource another 1000 Australian jobs. Retrieved from The Sydney Morning Herald : http://www.smh.com.au/business/telstra-tipped-to-outsource-another-1000-australian-jobs-20140213-32j43.html

Rouse, M. (2012, July). Infosys Technologies (Infosys Limited). Retrieved from TechTarget: http://searchcio.techtarget.in/definition/Infosys

Samuel, V. (2013). Advantages and Disadvantages of Outsourcing. Retrieved from Outsource2India: http://www.outsource2india.com/why_outsource/articles/advantages-disadvantages-outsourcing.asp

Schneiders, B. (2008, October 4). Telstra call centre jobs to be axed in overseas deal. Retrieved from The Age: http://www.theage.com.au/national/telstra-call-centre-jobs-to-be-axed-in-overseas-deal-20081003-4tkn.html

Talkdesk. (2013, October 10). The Pros and Cons of Call Center Offshore Outsourcing. Retrieved from TalkDesk: http://blog.talkdesk.com/the-pros-and-cons-of-call-center-offshore-outsourcing

Telstra. (2014). About Us . Retrieved from Telstra.com: http://www.telstra.com.au/aboutus/

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