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Dell's Outsourcing Decision-A Turning Point or a Bump in the Road for Offshore Call Centers? Outsourcing the Right Way

Articles Dell's Outsourcing Decision-A Turning Point or a Bump in the Road for Offshore Call Centers? Ten years ago this coming May, Centech published its mission statement, suggesting that over the next decade, we believed that excellence in customer service would become the key differentiator in the marketplace as global firms continue to equalize their competitive advantage, both in terms of product quality and cost. Has that happened? In late 2003, Dell reportedly re-routed all of its corporate customers' calls to domestic call centers. (Home computer owners' calls will continue to be routed to Dell's call center in India.) The reason? Complaints from its corporate customers about accents and knowledge, according to CNN. Frankly, I am dismayed by the wholesale shipment of customer service calls to call centers in India in the last five years. The cost per hour is significantly less due to lower labor costs, but this is not the first time companies have experimented with sending their customers' calls overseas for lower cost. Accents are not the only barrier to overcome. There are cultural differences between our society and other countries that can take years to train for and become accustomed to. As a result of language and cultural barriers, American consumers and business customers often experience frustration when trying to make themselves understood. Here is an important factor to consider: Does the customer's propensity to call increase or decrease when calls are shipped to India? On the one hand, callers may hang up and try again, increasing call volume and cost in their hope of reaching another agent, perhaps in another country (the US). Or, they may not call again at all, and abandon any attempt to do business at all. Dell is not the only firm to pull back from India. The wireless industry has experimented there, and at least one major wireless carrier has shut down its Indian operations. Simultaneously, Verizon has clearly established itself in this industry as a dominant wireless provider by providing outstanding customer service. At Centech, we continue to believe excellence is the true determinant of success, not low hourly rates. Perhaps we have reached a turning point after all. Quality counts!

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