Contact Center Solutions Featured Article

Will Trends Emerge to Move the Call Centers Back Home?

April 10, 2008

The opening of a new call center is not always big headlines, but it can be when that opening is happening in the U.S. Too often, corporations are turning to more cost effective options overseas, leaving many out of work and frustrated with changes. So why the change and why now?

The reality is that there is still plenty money to be saved by implementing an offshoring strategy and many companies are still turning that way, but the economics of such a move are changing. Wages are rising, labor pools are diminishing and the value of the dollar is suffering.
 
According to Andy Singleton, chief executive of Assemla, a company that organizes distributed software development teams, there has been a 30 percent change in cost over the last half year. For those companies only saving 30 percent by outsourcing its call center labor, offshoring may no longer make economic sense.

While India still presents significant opportunity for those looking to offshore contact center and call center operations, some experts are predicting that the labor savings there could be gone in 5 to 10 years. This possibility has generated some interest in low-cost labor markets in the U.S.

"We've seen quite a few small, rural sourcing projects," says Doug Brown, partner of Brown-Wilson Group, an outsourcing consultancy, in a company statement.

According to a July, 2007 report from the Information Technology Association of America (ITAA), the midsize metropolitan areas and rural communities could provide a 30 percent cost savings over top-tier IT hubs in the U.S. The report also highlighted that overseas outsourcing was here to stay, but acknowledged that there might be niche opportunities in low-cost domestic outsourcing.

Even recently, foreign outsourcing firms are starting to set up shop in the U.S. India’s Wipro (News - Alert) announced in August 2007 that it would open a global software development center in Atlanta with plans to hire 500 workers.

One obstacle to the trend to move jobs back here is whether or not highly skilled individuals are available to fill the positions. In one example, AT&T (News - Alert) agreed to move IT positions back to the states, but had trouble finding talent. As a result, the company had to set up a training program.

There really is no one-size-fits-all solution when it comes to the call center and contact center industries. Every company is looking at the situation and how it will impact their own bottom line. While trends may be apparent, the end result is too hard to predict.
 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is, Best Practices in Agent Retention brought to you by Enkata.

Article comments powered by Disqus

Related Contact Center Solutions Articles

Altocloud Jumps in the Smyths Toys Toybox to Bolster E-Commerce Presence

Those not immediately familiar with Smyths Toys can be forgiven, particularly if they don't live in the U.K or in Ireland, where Smyths Toys has at last report 80 stores to its credit. But Smyths Toys might well be easier find thanks to a new connection with Altocloud, which will bolster Smyths Toys' online presence and make e-commerce that much easier to carry out. [ Read More ]
04/22/2015

US Contact Center Jobs Continued to Increase in the First Quarter of 2015

The number of new U.S. contact center jobs was on the rise in the first quarter of this year, according to a jobs4america report. [ Read More ]
04/21/2015

Xerox in Gartner's Leaders Quadrant for Third Straight Year on the Strength of its BPO Services

Gartner recently announced that as a result of its research and evaluation, Xerox's performance in business process outsourcing (BPO) had placed it in the Leaders Quadrant for that industry for 2014. It marks the third straight year that Xerox has received such recognition. [ Read More ]
04/15/2015

Evariant Delivers More Data Driven Solutions for the Healthcare Industry

With so much information at their disposal, service providers are offering solutions that make sense of all this data while combining different products and services to improve the overall operations of healthcare providers. The new release by Evariant looks to use big data and analytics to improve the experience of patients, physicians and employers with contact center solution for real-time engagement and mobile Physician Relationship Management app. [ Read More ]
04/13/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!