Explain how the development of telecommunications has made cities like Bangalore and Omaha important locations for the development of service trade?

Answer 1

Telecommunications have increased the value and pay of English speakers around the world. Before the coming of toll-free telephone numbers, telemarketing and call-in services such as travel reservations (since taken over by the Internet) were minor industries. As these services grew in volume during the 1970s, Omaha, Nebraska, became home to the largest number of call centers. Its location became a resource because it was in the center of the country, which was important when rates varied more with distance than they do today. It also had the highest-capacity telecommunications network of any major city because it was adjacent to Strategic Air Command Headquarters during the Cold War. As growth drove up the wages of call-center workers in Omaha, their owners discovered another resource. They set up shop in farm towns where job opportunities were vanishing with population decline.

What happened in Omaha is now happening in India, and for the same reason—high-quality telecommunications now make English-speaking call-center workers there an economical alternative to Americans. Bangalore's location thousands of miles from the United States and Europe was once a major detriment, but telecommunications have turned it into a resource. Because Bangalore is ten and a half time zones away from the United States, Americans can work on programming and design projects during their daytime and send them to India for further work during the Indian day.