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The Key Factors that Drive Companies to Outsource their Call Center Services Offshore

By Sonia Roody Subscribe to RSS | April 20th 2012 | Views:
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Running a company is no walk in the park. Aside from the market and service-oriented aspects required to keep a company running, it also entails a lot of supervision and accounting As in all businesses, customers get confused or dissatisfied at some aspects of the product or service, and to keep them, companies set up call center services to attend to their concerns.

A key controversy in the outsourcing phenomenon is the decision of most companies (particularly those based in North America and Europe) to outsource their call center services overseas. The first answer offered by most people is that offshore outsourcing is cheaper. In most respects, this is true. However, other crucial factors come into play, and if you are seriously considering outsourcing overseas, these are issues you need to consider.

The most compelling reason for companies to outsource their operations is lower wages. It’s no secret that most outsourcing occurs in third world countries such as China. Aware of the fact that people in these places are used to lower wages, executives find it tempting to outsource labor.

Another factor frequently underappreciated is the high regulatory cost of employing workers in first world countries. First world workers are entitled to social security, Medicare, unemployment insurance, and a host of other government-imposed benefits. By hiring overseas, executives get the same talent for less, as none of these costs apply to them. The high cost of corporate income taxes is another impetus to outsource. Overseas countries are aware of this and to bring in more jobs, they offer generous tax incentives to outsourcing companies.

Financial losses arising from employee lawsuits are also a significant factor behind outsourcing. As employees become more educated about employment laws, it becomes difficult for executives to arbitrarily downsize as a reaction to market dynamics. But with an outsourced call center, executives can expect less lawsuits from laid-off call center agents, as the expense of attorney’s and court fees make it prohibitive for them to do so.

By outsourcing their call center services, businesses can devote resources to their core activities – that is, what primarily brings them profit. Thus, the resources freed by outsourcing can be used to increase advertising or finance a new product line. In short, outsourcing services through an overseas call center can be beneficial for companies.

These are just some factors that might help you decide to outsource customer care services through an offshore call center. You can learn more relevant information about outsourcing on streetdirectory.com and entrepreneur.com.

Sonia Roody - About Author:
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