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

Plantronics' DA80 Makes Customer Service Centers Smarter

The moniker smart is now attached to phones, TVs, homes and even cars. As the size of computer processors get even smaller, more products will be embedded with the technology to make them smarter to deliver improved efficiency and productivity for many different industries. For contact centers, the goal is to always improve customer service, and then new Plantronics next-generation USB audio processor not only increases the effectiveness of service center operations, but it makes customer intera… [ Read More ]
02/25/2015

Contact Solutions Launches Adaptive IVR that Learns from Caller Behavior

We are all familiar with Interactive Voice Response (IVR) systems as the first thing we typically encounter when calling a contact center. The fact of the matter is that today's IVR capabilities can do a lot more than just give us options for directing calls to the appropriate resources. They are in fact valuable tools for contact center administrators in terms of improving the customer experience. In fact, as illustrated by the recent announcement by Reston, VA-based cloud-based customer care s… [ Read More ]
02/25/2015

Interactive Intelligence Highlights Five Customer Interaction Trends to Watch in 2015

A few weeks ago collaboration, communications and customer engagement solutions provider Interactive Intelligence hosted a jam-packed webinar called What's New for Contact Centers in 2015 and Why it Matters. If you missed this event, you can still watch and listen to the archived version, and it is highly recommended to say the least. [ Read More ]
02/19/2015

Teleperformance Wins Frost & Sullivan Award for Product Leadership in Chile

Work with BBVA cited as Teleperformance Wins Frost & Sullivan Product Leadership in Chile award. [ Read More ]
02/18/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!