January 31, 2007
The Wheels Turn Finally
By Priya Jestin, Staff Writer
To increase profits, an organization has to increase its revenues, while keeping costs constant – no brainer right? There’s another method – reducing internal costs like overheads. One of the biggest drains on all cash flow for any organization is its contact center.
Over the past decade many firms outsourced their contact centers to a firm overseas or built facilities offshore that will still be part of the parent company. These alternative locations seemed quite attractive as they promised lower overall costs and a skilled and educated labor pool. And the best part? Salaries would be a fraction of what it was in America.
Welcome to present-day reality: degradation in services, backlash from customers, unfavorable cost structures, and an inability to effectively manage these offshore units. Despite significant investments in these offshore units, many firms are finally accepting the reality: it’s time to come home.
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