Offshoring of contact centres can be two-way

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Posted Sun 24 February 2008 @ 12:09 p.m. by Ernie Newman

Two different stories about offshoring of contact centres hit my inbox this morning, and I happened to read one immediately after the other.

First, the DomPost reports that Telecom is investigating replacing jobs in its Hamilton contact centre with outsourced roles in the Philippines.

Second, finding outsourcing to Canada is becoming less attractive as the Canadian currency strengthens against the US, so some US businesses that outsourced their contact centres to Canada a few years ago are looking at bringing them home.

It got me thinking. Of all the labour-intensive occupations on the planet, contact centre work must be just about the most internationally-mobile. Offshoring has its chalenges but they can be managed, and the cost of international calls has gone through the floor.

Maybe the way of the future, ongoing, will be for contact centres to become something of a safety valve for currency movements and staff availability? So for example, when New Zealand's dollar strengthens and labour is scarce - the situation we face now - we'll see significant contact centre work outsourced. But when as always happens the cycle reverses, the jobs will be repatriated.

If so, contact centre managers and business strategists will need to be fast on their feet, and people who work in the centres will need to adapt to an ongoing scenario where the number of jobs in the sector becomes permanently volatile.

It's a slightly scary prospect on one hand. On the other, its the market at work and has the potential to generate a lot of efficiencies.

The key message is that the contact centre manager and employee of the future needs to be multi skilled and adaptable. Exciting times!

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2 comments

• Vincent says:

  Interesting article, I have worked in the telecommunications industry for nearly 20 years, having seen the affects in the UK of moving call centres off shore I am disappointed to hear that Telecom are now considering such a move. Sure the communications company saves lots of money but what really happens to customer service here in NZ? In my experience the following: You have language/accent problems which lead to an incredible amount of customer frustration You take work out of the country costing local jobs Customer service loses the personal touch and local knowledge interaction The company looses a great deal of control over how the call centres operate. Complaints are handled pooly as there is little knowledge of the business Generally I think it’s a real bad idea! Many European companies have seen the error of their financially based decisions and as a matter of fact some call centres are finally returning home.

  Added: 23 April 2008, 9:11 a.m. Flag as Spam  |  Flag as Offensive

• Richard Blank says:

  In today’s highly competitive outsourcing market, a closer proximity to the United States , Central Time Zone and Spanish language capability as an added value are now considered almost basic requirements when making a decision on what call center to use for your important project. Leaving this to chance is not even an option anymore.
  
  Many of the offshore call center agents are bilingual in their native Middle Eastern or Asian language which is difficult to the North American ear. Whereas Spanish is more useful and practical as a second language for potential untapped markets throughout the North, Central and South American populations as well as those countries where Spanish is either a primary or secondary language. This aspect alone has made Costa Rica a very attractive “near-shore” outsourcing solution.
  
  Most importantly, you can take advantage of the international tax laws granted to international companies that invest in Costa Rica and its local economy. The potential savings and benefits will make your outsourcing campaign a very wise business decision.
  
  In addition, unlike other traditional call centers, Costa Rica’s Call Center stays focused on managing no more than a hundred person call center, one outsourced or inbound customer oriented campaign at a time in order to properly control quality,performance and positive employee morale. Once capacity is reached at one of our call centers, another location will be created with the same structure and business plan in order to keep our call center results and expectations consistently higher than that of the competition.
  
  Call center software is as important to an outsourced campaign as telemarketing training. Both areas must be secure, reliable and willing to out perform the same competition that you are currently considering. Costa Rica has a very solid infrastructure ,stable democratic government, very competitive labor costs and a call center job pool that is especially attunded to the North American culture. Call center jobs are some of the top paying career opportunities in Costa Rica. This differs greatly from other countries that consider it as a starting position in a dead end company. Turnover at these other locations are five to ten times more than in Costa Rica.
  
  The high demand for call center services has provided our company with an abundance of respectable resumes of qualified telemarketers that want to work with and for you.
  
  We encourage you to visit one of our call centers on your next personal vacation or business trip to Central America’s paradise, Costa Rica. While you are here, we would recommend taking an extra day of your trip to visit breathtaking virgin beaches, play golf next to the ocean, try your luck at deep sea fishing, explore tropical jungles, climb a volcano or just relax in natural hot springs. Come and see for yourself why call center outsourcing in Costa Rica is a perfect solution for your growing company and a powerhouse in the BPO industry.
  
  http://www.costaricascallcenter.com/why_costarica.html

  Added: 29 June 2008, 7:40 a.m. Flag as Spam  |  Flag as Offensive

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