1/31/2005

A Valid Point on Outsourcing

I am open minded enough to see the benefits of outsourcing. Yes, jobs are being deleted and people are losing their job as a result, but in the long run won't they find another or create a job, possibly something where they can contribute to society in a more efficient manner? Not to sound cold hearted, but my concern is not for the welfare of the the working U.S. citizen. Well, I guess it is, but not as direct as everyone elses'. My concern is for the individual business, that despite outsourcing of some positions, still employ U.S. citizens. Lou Dobbs of CNN, who does not favor outsourcing, brings up the point that not only are we losing jobs here in the U.S., but the quality of service is being forfeited as a result. Here lies my concern. I've experienced a decline in quality service with a company that serves me. It discourages me from wanting to use the service because I can't understand the person that is trying to help me, in part due to their strong accent. In addition, the representative I am speaking with sometimes has no experience with the product I'm using. If quality of service declines, customers will go somewhere else, and revenue will drop for a business, possibly causing more job losses. I think outsourcing may have a more indirect effect than the majority of the public are focusing on. What will happen to the economy if the customer service of businesses have poor quality?

18 comments:

Rex said...

I agree with Sandy. Outsourcing can cause serious issues with a company’s customer service. I understand that as a nation, we are searching for the lowest price on every single item that we buy. This presents a problem for many companies. Meaning where do they draw the line. If people want low prices are they willing to get inferior products? Or can the producers save money by outsourcing their customer service. One way to look at it is if they keep the quality of the product up, they may not have to put so much importance on customer service. Maybe we, the American public, have brought this upon ourselves.

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Chuck said...

I too have been the victim of a company's plan to outsource their customer service department. I too don't enjoy talking to someone overseas who is hard to understand and knows little about the product. I've also talked to automated systems where you have to scream bloody murder to get to a customer service representive 15 minutes later. Outsorcing may be good in several areas of business but not in Customer Service. I don't want to talk to a computer or some guy in India when I have a real problem. Give me customer service!

Dr. Tufte said...

There are three ideas to touch on here. The first is why outsource? The second has to do with diversification. The third with measurement of these things by management.

Firms outsource when they think the productivity they get for wages is better overseas than here. So a firm may be very aware that the quality of their customer service has gone down, but they may be substituting quantity for that. I do not think that managers are dumb enough to go for lower quality customer service without increasing its quantity.

One little talked about advantage of that quality for quantity tradeoff is that it helps diversify a firms offerings. They may actually be able to reduce the risk of a caller getting bad service by having more people to spread that task over: more people allows for more specialization and better performance.

Lastly, there is a big measurement problem in anything involving service. We spend some time in ManEc talking about the econometrics of how you measure demand, and you will not find that stuff easy. It is substantially harder to measure things like service productivity, or the absence of demand because you lose customers from bad service. So, it is entirely possible that a lot of outsourcing is being driven by former ManEc students who didn't get a good handle on their econometrics. ;)>

Dale said...

I think that outsourcing hurts America in the beginning. As for the long term perspective it forces Americans to continue being entrepreneurial. Americans are notorious for taking risks and they can create new jobs that will eventually be better off for Americans.