Possible Outcomes of Using Offshore Call Center Outsourcing

    Ruben Rosas Moya
    By Ruben Rosas Moya

    An offshore call center, commonly referred as a BPO (Business Process Outsourcing) can be defined as an arrangement in which an organization employs people from another country (low cost centers) to accomplish some of their business processes which are generally not a part of their core business. The services provided by an offshore contact center may include inbound or outbound customer support, technical support, chat support, financial services support and so on.
    Benefits of Call Center Offshore Outsourcing
    It enables an organization to lower down its costs and to focus upon its core business to keep pace with the dynamically changing market trends. Countries like India and Ireland are emerging as the hot favorites for organizations in the US and Europe for outsourcing their processes.
    Additionally, outsourcing has the following benefits:

    • Time Zone: The support staff in countries like India, practice ‘follow the sun’ model which accounts for 24×7 support services without compromising upon quality standards.
    • Optimum Utilization of Resources: As a result of outsourcing the process, the company can focus on its core business process without having the need to bother regarding the outsourced process. The firm can optimally utilize its personnel for other productive and strategically important processes.
    • Tax Sops: A number of tax sops are being provided by a number of countries such as India, Philippines, and Ireland; which has made these countries a hot destination for BPOs. These Tax incentives provided by the countries help in minimizing the costs incurred in the process, thereby improving the financial results of the company.
    • Access to Skilled work force: Outsourcing the process results in access to a large pool of skilled resources in the offshore country at lower operational costs thereby boosting the balance sheet of the company.

    Disadvantages of Call Center Offshore Outsourcing

    • Customer dissatisfaction: Sometimes, it becomes a hefty task to assist a customer remotely due to lack of proper training given to the call center agent; cultural barriers between customer and call center employees; or sometimes technical issues. The grievance resolution time, thus increases significantly which results in customer dissatisfaction.
    • Security Issues: Sometimes, people are not willing to disclose their personal information to a remote call center in the world which incurs security costs along with reduced efficiency. On the contrary, theft of sensitive data such as credit card details and personal information of the customers readily available at offshore centers also raises security concerns.
    • Reduced Job Creation in Home Country: As the process is outsourced to an offshore country; it decreases job creation in the home country, although it generates a glut of jobs offshore. Countries such as U.S are trying to pass a bill in U.S Senate, which seek to penalize firms who outsource their processes to other countries by imposing higher tax on such firms.
    • Employee Attrition: Company incurs a considerable amount of money in training and knowledge transfer to the new recruits and attrition makes it go all in vain. A number of possible reasons may be cited which account for higher attrition rates in the BPO sector, such as poor working conditions and lesser career growth opportunities.