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

Golden Gate BPO Solutions Partners with NETCAST BPO Services

When it comes to business process outsourcing (BPO) while many parts of the world are gaining traction as places to locate facilities, India and the Philippines because of their large English-speaking talent pools remain the dominant BPO places to operate. This is particularly true for companies whose majority of customers require support in English. [ Read More ]
05/21/2015

AMC Technology Contact Canvas Integrates Contact Center Apps to Microsoft Dynamics CRM

In recognition of the value-added of CRM integration with contact center capabilities, enterprise and contact center application integration software specialists AMC Technology has announced it has telephony enabled Microsoft CRM 2013 and 2015 through its Contact Canvas platform. The AMC platform allows customers to integrate business apps and communications across the enterprise, from contact center agents to knowledge workers and mobile staff. [ Read More ]
05/21/2015

Lazy Dog Restaurants Partners with RRT On Takeout Management Solution

When it comes to the business world, customer satisfaction is the real currency that keeps a company going. This is true whether talking about a retail or restaurant or a call center. Lazy Dog Restaurant and Bar just announced it is taking the next step in increasing its customer service approach thanks to an agreement with Restaurant Revolution Technologies. The agreement will allow Lazy Dog to implement an innovative takeout order management solution that is going to be supported by the compan… [ Read More ]
05/12/2015

Boston Retail Partners' Survey Reveals 87 Percent Plan on Using Gamification

The latest survey from Boston Retailers Partners reveals retailers are implementing customer relationship management (CRM) solutions as a key enabler to influencing customers. And gamification has become an important tool as part of the CRM deployment. [ Read More ]
05/12/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!