Tuesday, October 02, 2007

The Ethics of Outsourcing Customer Service


Sending jobs overseas may be good for the bottom line in the short term, but frustrated customers will vote with their wallets

It's a familiar scenario: A product you purchased recently has developed a problem, so you call the company's toll-free number and are connected to a "customer service associate" in India or the Philippines. You describe your problem but have a hard time understanding what the company representative is saying. You try several more times to communicate why you are calling but cannot get information that you can comprehend. You ask to be transferred to someone in the U.S. and are then put on hold for what seems like an eternity. You hang up in frustration and vow never again to purchase anything from this company.

More and more businesses are outsourcing not just manufacturing jobs but services ones too. On the face of it, this seems like a smart financial move: By slashing labor costs 25%, 50%, or more, companies that have had slim profit margins are now able to enrich the bottom line and keep shareholders happy.

See full Article.