WOMAN: Welcome to this month’s Consumer Awareness Lecture Series presentation. In our globalised economy, most of what we buy is manufactured overseas. You’d be hard pressed to find a piece of clothing or an electronics appliance that is actually made in Europe. The same is also quickly becoming the case with services. Customer service, graphic design, website development…these are just some of the services that are being outsourced to countries where labour costs are significantly cheaper.
This is good for developing countries trying to compete in a cutthroat global economy. India, for example, has been able to develop by leaps and bounds thanks to its specialisation in outsourced call centres for major Western corporations. English being the country’s official second language…thanks to British colonisation, mind you…there’s, um, a large population of educated, English-speaking individuals to respond to the need for customer service representatives for all kinds of companies. And relative to other options domestically, working at a call centre is a quite good job.
This new trend in outsourcing can obviously be beneficial to many, but you as the consumer still need to remain vigilant and savvy. It’s becoming more and more difficult to determine the quality of the services you are purchasing. You can’t visit the company, and it’s unlikely that anyone’s heard of it, unless it’s one of the larger, more reputable outsourcing agencies. So, how do you protect yourself from getting the wool pulled over your eyes?
For one, do a lot of Internet research before using any services. You can usually find reviews of either individuals or companies on blogs, forums, or on service review websites. Um, but look, you need to read through quite a few of them before getting an, an accurate picture. I know I’ve read some scathing reviews but then later found out that the experiences of those reviewers were the exceptions rather than, rather than the norm.
But before even looking into a service’s reputation, you need to make sure it is legally registered. Educate yourself about business regulation laws in the country from which you intend to purchase the service. Ask the person or company for proof of their legal status. Usually this will come in the form of a certificate or business license. And if you’re not convinced, or just not sure, you can contact the relevant local government agency to double-check the registration’s validity. I know that seems like a lot of work, but it could save you trouble down the line.
Payment is another grey area in this new global service market. There are a lot of opinions out there on this, but here is my rule: don’t pay more than a 10-percent advance. If you do, you’re setting yourself up for trouble. Remember that 20 percent of a service is a lot of money in some countries, and many scams get you to put the money up front and then the recipients of the payment disappear. So, I say stick to the 10-percent rule.
But even if all of this checks out, you shouldn’t do any major projects with someone you’re just getting to know. You wouldn’t give a million-dollar contract to a company in your own country that you didn’t know and trust very well, right? The same rules apply when doing business overseas. Start with a small project, and if it goes well, move in to bigger ones.
Don’t get me wrong…I fully support outsourcing services, and I do think it’s an important aspect of economic development. I’ve had wonderful experiences outsourcing website and logo work. A freelancer in Bombay that I’ve been working with for years designed my own business’s logo, and my website is managed by a company in New Delhi. But some of my colleagues and friends have had less positive experiences, so just be careful.
And for tax purposes, you do need to obtain official invoices for any financial transactions. There are standard formats you can find online, and then just fill in the details. I know that the companies usually have their own invoices, but you need one that is in compliance with British tax policy.
Basically, being a smart consumer of anything, anywhere requires thorough research and some precautionary measures. If you follow these general suggestions, you’re almost guaranteed to have a pleasant and smooth business transaction.