what do you think about the business strategy of outsourcing?
answer desk for banks and wireless phones to name a few.
For the business it makes sense, I know that a lot of companies outsourse to India because from what I have heard that there are not a lot of jobs and a lot of the time there are highly educated people that are working in the call centers for less money than they would have to pay someone here in the US. I have worked for a company that outsoursed to India. From the conusmer point, I think that it sucks. Regardless of the fact that they speak english, they are hard to understand and there is still a language barrier. They use terms that we do not use here. Do the needful for example, who says that?
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January 23rd, 2010 at 1:56 am
For the business it makes sense, I know that a lot of companies outsourse to India because from what I have heard that there are not a lot of jobs and a lot of the time there are highly educated people that are working in the call centers for less money than they would have to pay someone here in the US. I have worked for a company that outsoursed to India. From the conusmer point, I think that it sucks. Regardless of the fact that they speak english, they are hard to understand and there is still a language barrier. They use terms that we do not use here. Do the needful for example, who says that?
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January 23rd, 2010 at 2:01 am
I see both sides of it. I’ve worked for a company that provided outsourced customer service, another company that outsourced some of its customer service jobs, and I’ve had my job outsourced.
In some cases, it makes perfect sense. A start-up company may not have the money or the expertise to run its own call center. In that situation, the company either outsources it or abandons its plans and doesn’t start up.
For companies that have the money and expertise, outsourcing must be done very carefully or it can come back to haunt them. Yes, it is less expensive than doing it yourself. However, outsourced call centers don’t have the same level of concern for the customer and ownership of issues that the company’s own employees have. If the outsource center is overseas, then there may be language issues as well. A great example is United Airlines. They may have saved a lot of money by sending their call center jobs to India, but they’ve alienated many customers due to bad service and communications problems. If you have to clean up a lot of mistakes from your outsource center, and your customers hate you due to bad service, have you really made a positive move for your business?
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January 23rd, 2010 at 2:38 am
When you ask what outsourcing is most people would reply call centres in India and other Asian countries.
Outsourcing is delegation of any of the internal operation to the external entity specialising that operation. It can be production or anything. In my opinion it is good for both consumers and companies.
Would American or European consumers be able to buy cheap consumer goods without outsourcing to China and India? We can only dream of.
Smart companies are which take advantages of difference in labour cost and expertise in the different countries around the globe. Example is Apple Ipod. Different parts of the ipods like chip sets, memory devices, software are being made in different countries including Germany and India. Why? Because these countries have labour force can perform certain task better and in some case cheaper. Finally everything is assembled in China. Assembling doesn’t require many skills and China can offer much cheaper labour than America. Without this outsourcing consumers would be paying much more than they are.
One of the respondents suggested that it sucks when Indian callers don’t speak understandable English. Well in that case companies put priority on cost rather than quality. This choice they are forced to make for their survival in increasingly globalize markets.
Wal-Mart can sell cheap goods mainly because it outsources production of most of the goods to China. Then how in the world it sucks for consumers? True for the most companies. In the latest developments many companies have started outsourcing their Research and Development (R&D) activities to the countries where they get combination of cheap but highly skilled labour. Advantage of this? More new products. Pharmaceutical companies can take advantage of this to develop newer medicines more rapidly. They can decrease product development time and cost significantly. Does it still suck for the consumers?
Companies can save millions, if not billions of dollar by outsourcing manufacturing to China and services to India. Ultimately consumers will be benefited.
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