It has been noted that a combination of political pressure, economic incentives and technology change is bringing back call center work that has been offshored to the United States. The technological shift is the most interesting, because it is being driven by the same forces that took these jobs offshore in the first place. Companies have found that not only is it cheaper to have customers perform basic service functions online, but that customers prefer it. By enabling customers to handle basic service functions online, companies reduce the need for call centers altogether. When the function of the call center changes, not only do customers receive better service, but the cost savings from foreign call centers are reduced.
Foreign call centers derived their cost advantages from the high volume of calls that needed to be handled, and these advantages persisted despite the disadvantages of operating calls overseas. A smaller call center, one with the focus on high-end interactions with customers, still has the same disadvantages in training, provision of service and the same risks of doing business overseas ranging from political risk to infrastructure issues. Yet, while the costs of operating call centers overseas have remained stable, the cost advantages have diminished. Thus, the economics of using call centers is not nearly as positive as it once was. Given that even states are adopting laws to punish firms that outsource customer service jobs overseas (Semerdjian, 2012).
Conclusion
Ultimately, the case for setting up call centers overseas is not as compelling as it once was. The case was always economic, and as we have seen a combination of different factors has dramatically diminished the economic case for overseas call centers. For high-volume call centers, especially those focused on outbound calls that can be run by third-party subcontractors, there is still a relatively strong overseas call center industry. However, for inbound call centers where the agents must engage in a high level of interaction with the customers, the case for offshoring is becoming less compelling. Technological change and the idea that a company can gain competitive advantage from locating in the U.S. have reversed the tide of offshoring, bringing a lot of call center jobs back to the U.S. Firms that do this have...
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