Indian Outsourcers Should Look At Rural Talent

According to recent Forrester research, technology spending in the United States is expected to grow 8.4% in 2010 and global market IT spending is projected to rise 7.7%. But, while IT spending may be better, the $60 billion Indian IT industry has a tough challenge in maintaining margins. The sector earns the majority of its revenues from the United States, and with the rupee growing stronger against the dollar, margins are being hurt. The Indian rupee appreciated 4% over the dollar in the quarter ended March after registering a 5% gain in the previous year. Additionally, with the job market opening up, players are resorting to double-digit salary increases to retain offshore staff and are taking a hit on their margins; the increasing costs are making traditional outsourcing a less attractive alternative. As I wrote in my Forbes column today, Indian IT majors should look very seriously at rural and small-town outsourcing, and soon.
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Outsourcing: West Corporation Interview (Part 6)

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.  >>>

Outsourcing: West Corporation Interview (Part 5)

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. >>>

Outsourcing: West Corporation Interview (Part 4)

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? >>>

Outsourcing: West Corporation Interview (Part 3)

By guest author Tony Scott

New Offshore Centers For BPO?

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. >>>

Outsourcing: West Corporation Interview (Part 2)

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? >>>

Outsourcing: West Corporation Interview (Part 1)

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. >>>

Is Outsourcing Dying Or Thriving? (Part 4)

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. >>>