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A Melbourne-based internet service provider is facing increasing costs of delivering customer services based in Australia. The company has decided to move its call centre
A Melbourne-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 choice between the following two strategies: [a] outsourcing its call centre service to an independent third-party local service provider in The Philippines, and [b] building a Greenfield call centre operation that is owned by the Australian company in The Philippines. Assuming [a] and [b] will result in a similar amount of cost-saving in the long run, which strategy would you recommend? And why
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