By guest author Tony Scott
Managing in a Truly Flat World
Tony: Do you see your customer base continuing to be predominantly in the United States, or do you look to expand outside of the country with companies in other markets where offering a call center model might be attractive?
Matt: Our clients will predominantly be U.S.-based in the foreseeable future, but we do have a sister company – InterCall – that works with companies around the world. >>>
By guest author Tony Scott
Labor Arbitrage and Fully Burdened Costs
Tony: What’s the general price differential that you have in terms of percentages between a domestic at-home agent versus a similar quality offshore agent?
Matt: That depends on the market that you are in and the client program. The Philippines and Central America can be roughly 45%–50% of what you would charge in a domestic center. A home-based agent can be roughly 15% less than a traditional agent working in a traditional facility. >>>
By guest author Tony Scott
Culture Gaps and Management Challenges
Tony: Do you find a cultural gap between the agents who are working for West who are based in the Philippines or who worked for you previously in India compared to your U.S. agents? Has that impacted your ability to move into higher value services when using offshore agents? >>>
By guest author Tony Scott
Tony: Are you looking at the virtual model outside of the United States as well, or do you do pure brick-and-mortar offshore?
Matt: We have discussed it, but we haven’t pursued it at this point. >>>
By guest author Tony Scott
The Home Agent Advantage
Tony: You mentioned that you believe you are able to provide a total cost of service at a lower rate using the home agent model versus the brick-and-mortar model?Compared to domestic brick-and-mortar call centers, what percentage differential do you typically find? >>>
The Future of Call Centers
Last week I talked about the double-edged sword facing outsourcing companies that are playing a pure labor arbitrage game because of lower cost of communications and the potential to virtualize call centers. This week I’d like to share with you some of my interview with several senior executives from a company that has taken advantage of the opportunity to virtualize call centers – West Corporation. >>>
By guest author Tony Scott
The Double-Edged Sword: The Flat World
A few years ago Thomas Friedman’s “The World Is Flat” became a global best seller. One of that book’s key areas of focus was examining the immense change that lower-cost, effective global communications was causing by enabling back-office call centers and IT support work to be provided in lower-cost labor environments, particularly India. >>>
By guest author Tony Scott
In part I of my article, I pointed out the reasons why outsourcing to India based on pure labor rate arbitrage faces significant obstacles to continued growth – and possibly even to future survival. On the other hand, outsourcing is clearly thriving – in India and around the world. How can we reconcile this? >>>