Option 1: After careful analysis of the business environment, I recommend that the account transfer department be relocated to India. For my reasoning, read below. Option 2: Looking carefully at the situation and business environment, I would not recommend Charles Schwab to move part of its customer service department to India. Please read the analysis for more details. Analysis: The main factors that have contributed to the explosive growth of the offshore services sector are the phenomenon of globalization and other demographic, political, social, technological and economic factors. Demographic: It is very likely a decline in the ratio of the working population in richer countries will occur in the near future. And for developed countries to continue to function and remain competitive, they will have to look for employees from outside. This shortage of skilled labor in richer countries can be covered by external resources located abroad. India and other developing countries have a younger workforce with the skills and education levels needed to fill the likely shortage of highly skilled employees in the developed world. India, for example, produces over 2 million graduates every year; this gives companies enough options to choose from, when recruiting workers for their offshore operations. Cost-Effective: One of the biggest benefits of offshoring to India is cost savings. By relocating operations there, companies are able to save between 40% and 60%. Indian workers can be hired for much lower wages than their counterparts in the United States. Infrastructure costs in India are also lower, leading to significant capital savings. There are also tax incentives, the Indian government is giving tax breaks, for example 35% tax on corporate profits is being waved for companies that offshore their operations in India. The Indian government also offers a ten-year tax break for new companies within industrial parks or economic zones. Technological: the decrease in communication costs, the sharp increase in telecommunications infrastructure, the availability of high-speed data connections, the Internet and constantly evolving hardware and software technologies have made it possible to move information cheaply, quickly and efficiently in terms of quality, allowing geographically dispersed teams to work together. One of the main reasons why India is so profitable for foreign companies is its low-cost supply base. The factors that make India so attractive to choose as an offshore destination are the English language, English legal system and huge highly skilled and educated workers..