In 1996, British Airways opened a processing centre in Mumbai, India, to handle some of its operations work.Customer relations (handling complaint letters rather than phone calls)and passenger revenue accounting (an airline finance function)were the first two major business tasks moved to India.Since then, the ROI from this relocation included savings of nearly $23 million per year per 1,000 jobs it relocates to India, reduced delays in answering complaint letters (from more than two weeks to less than three days), shorter training periods, and higher work quality.The above serves as an example of:
A)open-sourcing.
B)offshoring.
C)in sourcing.
D)home sourcing.
E)onshoring.

Question

Quizplus · Accepted Answer

The example describes offshoring, which is the relocation of business processes from one country to another—this case from the UK to India for cost savings and efficiency improvements.

In 1996, British Airways Opened a Processing Centre in Mumbai