From Vision to Reality:
If you think offshore call centers will not become mainstream…think again!
By John Weikert, President, Weikert & Co., L. L. C.

History tells us manufacturing jobs began moving offshore 30 years ago, so is telemarketing and customer service, now. The trend, fueled by market demand for 24/7 phone and e-mail support, and business' need to control labor costs, has given rise to the same arguments that skeptics made generations ago about off-shore manufacturing jobs. Chief among them: (1) Foreign workers aren't as skilled; (2) foreign workers take good jobs away from Americans; (3), workers (particularly those in developing/emerging economies) will be subjected to oppressive conditions; and (4); we have a choice. Each of these statements is emphatically wrong.

Culture Clashes
The first argument might be viewed as patronizing. But there are accent, idiom, culture and consumer expectation issues to consider. Fact is, telemarketing and customer service in the modern sense is an American invention. Anyone who has traveled widely knows customer service in the rest of the world is poor compared to at home. Indeed, the perky professionalism that is the hallmark of U.S. agents tends to be regarded as suspicious, demeaning and subversive outside our borders.

That said, contact centers popping up in such distant locales as India, Indonesia, Israel, Egypt, the Philippines and the Caribbean are providing American-style service. Customer feedback indicates comparable levels of quality among domestic and offshore agents.

Why the favorable performance? For starters, many of the offshore call centers have "accent neutralization" initiatives that help agents to speak slowly and to include American idiomatic expressions in conversation. Second, foreign support agents are often better educated than American counterparts. That's because high competition for jobs in developing countries allows for more rigorous screening of applicants. Employee turnover is low compared to US rates because agents in developing economies have a higher status than in North America. As a matter of fact the job of telemarketer/agent is looked upon more as a career than a job.

As to the second argument – that contact centers take good jobs from Americans – consider this: With more than 70,000 call and contact centers in North America, finding qualified agents is a major concern for many managers. And keeping agents after they're hired is a major headache. Many companies are as likely to cite labor availability as lower labor costs as a reason for opening contact centers offshore.

And what about the third argument: That there is a risk of unregulated and potentially oppressive working conditions? Well, not so. Ramesh Gudalur, Vice President and his colleague, Manuel D'Souza at Intelenet, tells us their company provides a fund similar to our 401K, called the Provident Fund, which is mandated, by the Indian Government, accident insurance, transportation, free food for evening and night shifts, Internet café's at central points on each floor – meant for the agents. They are also working on providing concierge, education on diet and nutrition, guesthouse facilities and a host of additional benefits. Ashish Khandeiwal, director of business development for Zenta Technologies, confirms that his firm too offers a variety of benefits including food service and special vacation benefits.

Accepting the Vision
Finally, do we have a choice? I think not. Historically, as populations have become more prosperous, they have demanded more service while becoming less willing to provide the necessary labor from within their own ranks. Foreign workers have frequently been imported to fill low-wage labor positions. But now technology allows some of these workers to stay at home. The benefit to emerging economies is obvious: Decent jobs in a clean industry; investment in regional infrastructure; expanding tax bases; families kept together. The benefit to North American consumers is also clear: More service at a better price with little or no decline in quality.

John Weikert is president of Weikert & Company, LLC, a leader in assisting companies plan and execute outsourcing and merger and acquisition strategies for the call center industry. For more information about Weikert & Co., [Click here!]

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