Survey Reveals Shift of Business from Offshore to Domestic Teleservices Firms

November 2009

Survey results revealed during the American Teleservices Association's Annual Convention and Expo show that U.S. companies that outsource teleservices shifted a substantial portion of their business from offshore to domestic providers over the past year.  This move reflects a significant increase in satisfaction with domestic teleservices firms, according to a new survey conducted by the American Teleservices Association (ATA) and sponsored by DialAmerica.

In the survey, fielded last month among twenty-seven major U.S. companies that outsource over $300 million in customer acquisition and customer care functions, 44 percent of respondents said they only used domestic teleservices vendors, a jump from 28 percent a year earlier.  Consistent with this shift, respondents that utilized a combination of domestic and international teleservices vendors dropped from 71 percent in 2008 to 48 percent in 2009.

Overall satisfaction with teleservices providers rose year after year.  Respondents who said they were "very satisfied" with their most recent teleservices relationship increased from 18 percent in 2008 to 25 percent in 2009.  Combining "very satisfied" and "somewhat satisfied" responses revealed an overall improvement in satisfaction from 83 percent in 2008 to 92 percent in 2009.  However, satisfaction with offshore vendors rose more modestly in the ATA survey.  "Very satisfied" respondents increased from 6 percent to 12 percent from 2008 to 2009, while "somewhat satisfied" respondents increased from 53 percent to 59 percent.

"Outsourcers increasingly appreciate the value that domestic teleservices vendors can offer.  While satisfaction with offshore outsourcers is also improving, it significantly trails U.S. companies," said ATA CEO Tim Searcy.

Accompanying the greater satisfaction levels in the survey, respondents indicated they were less likely to change their teleservices vendor relationship in the coming year.  Only 24 percent said they were "very likely" to change, compared with 32 percent in last year's survey.

Other key findings of the survey include:

• Fifty-two percent of respondents say they plan to increase their teleservices program next year; 40 percent say they expect to maintain their teleservices program next year.

• Of those that plan a budget increase, 43 percent say it will be in the 10-20 percent range; 29 percent say their increase will be in the 20-30 percent range.

"It's gratifying to see growing confidence in domestic teleservices firms," said Arthur Conway, president and CEO of DialAmerica.  "Companies increasingly recognize the importance of industry sector experience, training, security, compliance, and strategic program management when they outsource a business function."