Businesses look to lower costs<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Have you ever wondered where exactly the customer service officer
\nyou are talking to in a call center is actually located?<\/p>\n
In the same city or same country? Possibly. But it is now more
\nthan likely he will be sitting somewhere with lower real estate
\ncosts, a regional survey has reveals.<\/p>\n
A customer in Europe, for example, might well be calling a
\ncustomer service officer in India to get a gadget fixed by a
\nEuropean technician a few hours later.<\/p>\n
According to the results of Jones Lang LaSalle's corporate
\nreal estate impact survey, 48 percent of companies surveyed in
\nthe Asian region try to reduce their costs by moving some of
\ntheir operations to lower cost locations, be they back office,
\ncall center or manufacturing units.<\/p>\n
The survey reveals that India remains the prime destination
\nfor manufacturing outsourcing and call centers, while China is
\nemerging as a leader for research and development, and software
\ncenters.<\/p>\n
Separately, two of Indonesia's biggest enterprises are also
\njoining the move overseas.<\/p>\n
The Sinar Mas Group opened a pulp and paper factory in Henan
\nprovince, China, last year.<\/p>\n
The 106,720 hectare plant produces 300,000 tons of pulp and
\n600,000 tons of paper annually.<\/p>\n
Meanwhile, another giant Indonesian conglomerate, the Salim
\nGroup, confirmed in May 2005 a plan to set up a
\nwholly-owned motorcycle manufacturing unit in West Bengal, India.<\/p>\n
The plant would have a production capacity of 60,000
\nmotorcycles annually.<\/p>\n
Even though business conditions remains positive in most parts
\nof Asia, global pressures are driving prices down for many
\nproducts and services.<\/p>\n
\"Companies are seeking further cost reductions from their real
\nestate portfolios ... through offshoring activities to cheaper
\nlocations and implementing alternative workplace strategies,\"
\nsaid LaSalle Asia Pacific managing director John Forrest.<\/p>\n
Looking ahead, the strongest demand for office space will
\nremain focused on China, followed by cities in India, driven by
\nthese markets' continuing appeal as offshoring destinations,
\nLaSalle stated.<\/p>\n
Demand for space is focused on the major Chinese cities of
\nShanghai and Beijing, as well as Indian cities like Bangalore,
\nMumbai, Delhi and Hyderabad.<\/p>\n
However, new locations are expected to emerge in Sri Lanka,
\nPakistan, Vietnam and the islands outside of Luzon in the
\nPhilippines.<\/p>\n
Indonesia, unfortunately, is nowhere to be seen in this part
\nof the report.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/businesses-look-to-lower-costs-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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