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Advantages of In-House Vs. Outsourced Call Centers

Growth Trends for Related Jobs

Call centers can provide entry-level jobs where people gain valuable experience. According to “Computer Economics,” the U.S. economic conditions since 2008 continue to drive call center jobs to be outsourced offshore. Information technology, human resources and financial service jobs are the leading outsourced jobs according to the Hackett Group. Their December 2010 report estimates that another 1.3 million jobs will be outsourced by 2014. But outsourcing has a number of constrains as compared to in-house call centers.

Speak My Language

When sending a business function to a company in another country, cultural issues come into consideration according to InfoWorld. The call center location may exist half a world away, handicapping both outsourced workers and consumers. Some consumers have difficulty understanding the call center employee because of heavy accents. Call center employees may also have difficulty understanding the consumer. InfoWorld also notes that developers and call center workers are handicapped by not seeing body language or knowing how business users work with the product.

Financial Considerations

Most businesses that outsource call centers hope to save up to 50 percent of their call center costs according to Web Factory Marabella. The real savings often add up to less than half of that. Additionally, the company suffers a 13 percent loss in customer satisfaction. According to ConsumerWorld UK, the quality of work often falls far short of expectations and increases the chances that their projects will not succeed.

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Technical Expertise

The company who creates the product will have the most familiarity with the products and any new additions. The company will have had the most experience with the product during development and the most information about safety and quality concerns. Expecting call center employees to have access to this information denies reality. They will receive the information secondhand and may not be able to provide technical information recently acquired by the technical development arm of the production company.

Security Concerns

Access to business information required by outsourcing creates security concerns for the company who created the product. The more sensitive the information, the more risk the company bears in keeping that information secure. The call center, especially if outside the U.S., may not maintain the same level of security and this can put the company and consumers at risk. Consumers share the risk if they must reveal any personal information to the call center employee for verification or payment for services. In 2010, 90 percent of the companies that experienced security compromises through hacking had outsourced 40 percent of their applications to third parties, leaving businesses vulnerable because of code outsourcing.

Supporting the Local Economy

The Hackett Group estimates that more than 3.3 million jobs will be outsourced overseas in the U.S. by 2014. According to Web Factory Marabella,, companies could save a comparable amount by outsourcing those jobs to financially depressed U.S. localities, if they must outsource.

About the Author

Rev. Kathryn Rateliff Barr has taught birth, parenting, vaccinations and alternative medicine classes since 1994. She is a pastoral family counselor and has parented birth, step, adopted and foster children. She holds bachelor's degrees in English and history from Centenary College of Louisiana. Studies include midwifery, naturopathy and other alternative therapies.

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