Overview

In the twenty-first century, everyone is becoming even busier and emphasizing efficiency more than any other time. Thus, people are rapidly adapting social media to interact and work in the most efficient way. But why would someone choose Skype among all other popular social media websites? What are the benefits offered by Skype, but not others?



The Platform in Brief

Skype is a telecommunications application software that registered users are identified by a unique name and allowed to communicate through video chat, voice chat, and instant messaging from computers, tablets, and mobile devices via internet to other devices. The users can also exchange files and images, send video messages, and create group conference calls of up to 25 people by simultaneously logging into www.skype.com. Most services offered by Skype are free, but Skype credit, a debit-based user account system is required for users to call landline or mobile numbers around the world. Skype can be downloaded onto devices running Microsoft Windows, Mac, Android, or Linux, and Windows phone, Blackberry, Nokia X, Fire OS, Xbox One, and PlayStation Vita. While communicating through the platform, users need a microphone for voice call and a webcam for video call.


Skype was first introduced in August 2003 by Janus Friis from Denmark, and Niklas Zennstrom from Sweden. Its software was created by Estonians Ahti Heinle, Priit Kasesalu, and Jaan Tallinn. On 12 September 2005, eBay acquired Luxembourg-based Skype Technologies SA for approximately US$2.5 billion. Yet, four years later, eBay sold the 65% of Skype to Silver Lake for US$1.9 billion, valuing Skype at US$2.75 billion. On 10 May 2011, Microsoft Corporation purchased Skype Communications SA for US$8.5 billion, and made its incorporated division. By the end of the year, it completed acquiring all of the company’s technologies and phased out its long-standing Windows Live Messenger, instant messaging service by using Skype.


As of today, 500 employees are recruited in Skype, offering services for over 560 million users all over the world. According to a survey provided by Skype (2010), around 54 percent of its users are females, while remaining 46 percent are male users. Also, the survey results more than half of its users are between 16 and 34 years old. Recently, Skype has announced that the volume of its international calls has been continuously growing - 40% in 2014 alone!



The Platform in Operation

Skype emphasizes that more than 30 percent of its global users use the service for business operations. A survey by BBC News Magazine (2013) stated that more than six out of 10 human resources managers in the United States are now using video to interview job applicants. Moreover, the number of companies in the United Kingdom adopting a similar approach has been rapidly increasing. “Video interviewing is becoming an attractive option as organizations branch out overseas” said Claire McCartney, from the Chartered Institute of Personnel Development (2013). For instance, the UK company called Webrecruit has been using Skype for an automated video interviewing for the last few years. Skype allows its employers to input their questions and sends automated emails to interviewees to invite for the interview. Then the interviewees can sit for the interview within an allocated time frame, and the answers are recorded for employers to view at their pleasing time.

As growing number of companies are hiring employees globally, video interviews through Skype can be much more cost-effective method. Employers in the UK have spent an average of 10 working days on interviewing, 16% of the working week for travelling to meet candidates and created reimbursing travel expenses of £3,286 by according to a survey by Cammio (2012), a Dutch company specialized in online video services. Meanwhile, the European Organization for Nuclear Research (CERN) has reported cutting recruitment cost by 20% using Skype for its first-round video interviews. Another example would be Brightstorm Inc., the US company which offers distance learning videos for high school SAT and ACT students. Skype has become a strategic tool for the company to hire the best teachers from all over the country to teach its online video courses. The company’s co-founder and CEO Jeff Marshall mentioned that traveling from one place to another to find great teachers would have been much more time consuming and costly compared to the usage of Skype. More importantly, Marshall pointed (2009) “In-person is not the measure in which we want to test them… it is how well they do on camera”. Hence, it is vital for companies like Brightstorm to test the interviewees’ abilities to express themselves using a Web cam.

In addition, Skype is becoming popular not only in the service industry, but in various industries for marketing purposes. For instance, The Oprah Winfrey Show, an American national talk show with 25 seasons, had implemented Skype to host video calls between Oprah and her viewers at home. Also, nowadays it is very common for network news stations around the world to use Skype, as a cost-effective replacement for sending satellite trucks, and allowing citizen journalists to submit responses quickly. Therefore, Skype offers organizations vital strengths to stay closer to their clients, even in a circumstance of reducing the costs.



The Platform’s Pros and Cons

Opening a new account on Skype takes only few minutes, but it offers numerous benefits for its users. Originally, it was designed for individual use, yet the company developed Business Control Panel, which is an online utility enabling company to manage accounts for multiple employees. There are several functions of Skype allowing users to interact with others at lower price including instant messaging (free), Skype In (free video and voice calling), and Skype Out (low-cost call and text messages to mobiles and landlines worldwide). Especially for companies with many branches in overseas, having hundreds or thousands of employees to use Skype would be an important cost-effective strategy. In 2007, Skype stated that among 250 companies using the service, 95 percent experienced a large reduction in telecommunications costs. Moreover, the users avoid non-essential business travels by creating a conference call of up to 25 people, and save not only traveling costs, but the time on road as well, which increases the productivity. Also, Skype provides a tool called Skype Manager, by which companies can set up accounts for staffs, allocate credit and manage one central account to easily keep track of expenses incurred.

Furthermore, Skype builds more interactive environment for individuals, colleagues, and customers around the world. Regardless of differences in time and location, people can communicate 24/7 in over 170 countries. They also can send files, photos, as well as videos of any size immediately, and share computer screens with the person talking to. Another great advantage of the platform is called Skype Translator, which live-translates messages and spoken conversations with someone who speaks different language. Particularly for individuals, there are different types of emoticons and signs to express themselves even better through instant messaging, and chat histories are stored or can be modified. In the other hand, companies value video conferencing as same as the face-to-face meeting since time and finances are finite. Additionally, as customers are key to a successful business, companies take advantage of Skype to closely interact with them by spending less money. At the same time, it saves the consumers’ money and leads them to give more feedback on products and services. Eventually, the companies receive valuable information towards their future needs for improvements.  

Nevertheless, Skype has several issues that are seldom raised by its users. Like any other social media companies, security and privacy are the main concerns of Skype. One example would be its users in China used to use TOM online, a joint venture between a Chinese wireless operator and Skype since 2007. However, in October 2008, it was reported that TOM had been storing the full message contents of some Skype text on its own server, especially focusing on conversations related to political issues such as Tibet, Taiwan independence, and the Chinese Communist Party. Even personally identifiable information was recorded in the saved messages. As a result, Microsoft chose Guangming Founder (GMF) as a new partner for Skype. Recently, Skype stopped its support for calling mobiles and landlines from Skype within India. Yet, people in India can still make free calls by Skype-to-Skype accounts worldwide and international calls to mobiles and landlines, while the users outside of India remain able to make international calls to mobiles and landlines in India.

Moreover, there is another issue on using Skype for job-interviews that it provides younger generation an unfair advantage. Although, younger generations are experiencing technology from their earlier ages compared to older generations, it does not mean that they will feel more relaxed and sit comfortable for the interview. In fact, the chances of adults with no fundamental computer skills applying for a type of job with a video interview would be very low. Also, computer skills are earned in a short time of period and employers are looking for those with essential computer skills. Meanwhile, a break or loss of a system due to a busy Internet highway can be serious issue for internet-based companies like Skype. To prevent this type of default, Skype has been upgrading its software frequently and has not faced any big challenge so far.



Analysis

Lastly, I consider Skype as a highly efficient tool for both individuals and organizations. Due to its great advantages such as user-friendly, availability of different features and low price, people can interact more closely with one another, while organizations can increase its efficiency and productivities of the employees. Particularly, families whose family member is living in abroad and organizations with many branches in overseas are likely to benefit even more. Although, services offered by Skype still have some issues, I strongly believe that they will continue to develop, and improve the efficiency of daily lives of its users.



References

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Blackwell, G. (2009, April 22). The Pros and Cons of Skype for Business. Retrieved

February 18, 2015, from http://www.smallbusinesscomputing.com/buyersguide/article.php/3816716/The-Pros-and-Cons-of-Skype-for-Business.htm

Briggs, H. (2013, February 14). The awkwardness of the Skype job interview. Retrieved February 5, 2015, from http://www.bbc.com/news/magazine-21334710

Kasesalu, P., & Tallinn, J. (n.d.). Skype. Retrieved February 4, 2015, from  http://en.wikipedia.org/wiki/Skype

Krapf, E. (2010, August 9). Profiling the Skype User: Female, Young, Well-Off. Retrieved February 10, 2015, from http://www.nojitter.com/post/226600277/profiling-the-skype-user-female-young-welloff

Mcllwain, A. (2011, June 16). The Advantages of Skype in Business Communications. Retrieved February 5, 2015, from http://financialsocialmedia.com/the-advantages-of-skype-in-business-communications/

Skype Technologies. (n.d.). Retrieved February 4, 2015, from http://en.wikipedia.org/wiki/Skype_Technologies

Smith, C. (2014, May 21). 20 Amazing Skype Statistics and Facts (January 2015). Retrieved February 5, 2015, from http://expandedramblings.com/index.php/skype-statistics/

Contact Information

To contact the author of this article, “What You Need to Know About Skype: An Executive Roadmap for Social Media Success,” please email the author at [email protected] and/or [email protected].    
 

The mission of the College of Business at Southeastern Louisiana University is to provide educational experiences for personal, professional and intellectual growth, enable the creation and sharing of knowledge to enhance learning and to advance the practice of business, and engage communities through service to positively impact their future. The Accounting and Business programs in the College of Business are accredited by the AACSB International.