The Outsourcing of American Call Centers

Customer Service from Afar

Michele Starkey

I am trying desperately to see some positive in the outsourcing of American call centers. I've decided that I now have the opportunity to speak with people all over the world that I otherwise would never meet. I'm clinging to that thought and wondering how I can use it to make the world a better place.

It began last week when I called the local Times Herald newspaper customer service. My call was transferred to a call center in the Philippines. When I inquired where they were located, my representative politely admitted that she was outside the U.S.

Last night, we had issues with our local cable company and I ended up chatting with a gentleman in India who was also upfront about his location. I have no problem with the international call centers handling my customer service calls but I wonder if this is the death of American Call Centers.

I found a comparison chart for wages. Entry-level American workers in call centers earn $30,000 per year as compared to US $4,500 for India and US $3,600 for the Philippines. Americans cannot survive on those wages as it would be considered below poverty level in America.

But, are the American businesses that are outsourcing these jobs compensating the American consumers for the savings? The answer is no they are not passing along the savings but they are stating that it is preventing increases in services.

The outsourcing of call centers has been growing at an alarming rate. When I wrote this article about being caught in the tangle of tech support back in 2009, my cable company's tech support was still located in the United States. It has since moved overseas. You can read that article here. If you call today, you will be transferred to India or Malaysia.

The onshore vs. offshore debate has escalated to the courts in a recent class action suit filed against Bank of America on Aug. 3, 2011. The suit alleges that the financial industry's practice of transferring customer service calls to offshore call centers where foreign calls centers have access to customers' financial information is illegal. The Bank of America is using those offshore call centers and transferring financials outside of America. You can read the full report from the Loeb and Loeb website here.

Is there any solution for customer service centers to return to American shores? An article that appeared in the Amarillo News in 2008, Dell was offering its customers the guaranteed American customer service agent - at a premium price. The article stated, "Your Tech Team Dell service, with agents in the United States, costs $13 a month for customers with a Dell account, or $99 a year for people who buy a new computer."

I called the phone number on the Dell website (1-866-223-5417) and my call was quickly routed to New Delhi, India and I spoke with Deepak. He told me that for a premium price, I could be transferred back to America. I asked Deepak what his compensation was and he said he was not at liberty to discuss it. It was 7:30 in the evening in India. He did say his shift was just beginning.

If nothing else, I am meeting people all over the world that I would never have the opportunity to speak with and trying to stay positive as the American Call Centers are slowly dying.

Sources:

http://www.contactprofessional.com/topics/remote-agents/news/virtual-home-call-centers-play-crucial-role-econom-3136

http://www.loeb.com/financialinstitutionlawsuitoffshoringcalldatacenterservices/

http://www.magellan-solutions.com/call-center-industry_people.htm

http://www.dell.com/content/topics/segtopic.aspx/services/your_tech_team?c=us&l=en&cs=19

Published by Michele Starkey

Optimist who enjoys writing, laughing and spreading good news. If I have but one life to live, I hope to make mine memorable. My epitaph will read: she lived, she loved, she left.  View profile

58 Comments

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  • Michael Segers10/7/2011

    There is "out-sourcing" of call center jobs within the US. Florida has a number of call centers, paying minimum wage, associated with companies located elsewhere in the US, because they can get away with low wages here.

  • Betty Asphy10/2/2011

    Yes there is outsourcing now for nearly everything.

  • Linda M. McCloud9/23/2011

    I love how you try to look on the nice side of things. I hate that these jobs are going out of the country because so many people needs jobs. I also hate the fact that I have so much trouble understanding these support people. That is why I have my hubby make the support calls in our house.

  • Gabrielle Rice9/23/2011

    I am with RC Johnson. I can't understand half of them at the call centers and I don't think they understand me half the time. I hate the fact that American call center jobs are being shipped overseas and it is a negative effect on our economy.

  • Judy (Montelauro) Harrell9/22/2011

    Having been unemployed for so long and not even having enough money to heat my home, I, of course have a biased opinion! Even though I am now retired I would love a call center position where I could work at home. I just don't like the idea of any more American jobs vanishing as I sit in my cold home this winter and wonder if hypothermia will set in.

  • Sivaramakrishnan Ananthanarayanan9/21/2011

    Technology has shrunk the world. In a way, we cannot fight the momentum and are powerless, sort of Pandora'a box is opened! Even in Singapore, my calls are transferreed out to many countries - siva

  • Oscar Crawford9/20/2011

    On this one I am so right wing, I shock myself but if I feel prompted to ask where the person is and they are not in the U.S. the conversation is over. That is a job taken from a U.S. city and citizen further eroding middle class working America that builds community in other countires while the U.S. companies still sell the products to American. That is jacked up. Thanks for the article.

  • Charlotte Kuchinsky9/19/2011

    I'd love to put a positive spin on it but usually I come away so frustrated, I want to scream.

  • C. Jeanne Heida9/19/2011

    Love this article and how you put a positive spin on it. But ultimately, the blame is on us, the American consumers who "talk the talk" about buying American, but continue to use services that outsource their labor to overseas because we don't want to pay more.

  • Rita Oakleaf9/19/2011

    I admire that you're putting a positive spin on this, but even with my easy-going personality, little in life is as irritating as a customer service call that can't be understood or a problem that can't be solved due to ignorance. Real customer service is what will keep customers coming back.

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