Call Center Outsourcing Payback

Because of the recession here in the United States and other developed economies, many businesses are outsourcing with call centers. Critics suggest that this could cause unemployment, which could be reduced if these jobs stayed at home. They also think that all phases of production are better handled by those at home, as well.

If we compare numbers though, those businesses would spend somewhere between 67%-72%, where as if they outsource, they are only having to spend 33%-40% of all costs, and that cost includes training, benefits, and other incentives. The savings are due to the uneven exchange rate of the currencies of the client and the service provider countries.

Labor cost overseas generate between $1.12-$1.14 in additional value for the American economy by making goods and services cheaper, and companies more competitive. Keeping the service at home would incur higher investment with 5-10 time's longer payback period.

So keeping services overseas is a more financially-sound alternative. The countries that receive the outsourcing services usually experience impressive financial growth and higher standard of living for those directly involved. It's really a win/win situation. 

Outsourcing is usually beneficial for businesses that deal with process which are associate with the company's image enhancement, require little access to the intellectual properties and patents, incorporate core competencies with the least possible influence on overall operations, and are not labor intensive. Countries that want leadership in outsourcing have to show written and spoken proficiency in English, skilled workforce, flexible hours, low labor costs, and available staff or management. 

There are some negative considerations that need to be taken into account like political and religious instability, cultural differences, internal competition for resources, rising labor costs, and poor infrastructure. 

An unexpected drawback is the high rate of attrition. Many agents can only stay on for a year or so because the industry prefers dynamic and restless young people, individual talent is generally overlooked, the job is seen as upper societal, many consider the opportunity as temporary, or monotonous semi-mechanical and repetitive operation during night hours is conducive to boredom and drowsiness.

To adjust to this issues, you can initiate and push some steps like hire more mature and emotionally reliable people, recognize personal talents to be rewarded, encourage involvement in community-based programs, provide tangible job security, and implement round-robin turns in responsible positions or functions within the line-of-business or account.