The Future of Offshoring

By Peter L DeHaan

December 12, 2007

In the last issue of eConnections, I provided added detail to the third of six observations from the 2007 ATA Convention & Expo.  In this issue, I will cover the fourth item: the future of offshoring.  In review, the six points are:

1.      Outbound is dead.

2.      Expect additional regulations regarding all contact methods.

3.      Plan for increased agent scarcity.

4.      Offshoring is inevitable.

5.      Computer agents are coming.

6.      There is a tremendous opportunity.

To recap the dilemma of agent scarcity, the primary demographic group for agents is shrinking, plus members of this group are increasingly not interested in call center work.  To address this, we can open branches in labor-ready areas, tap into the work-at-home market, and pursue aging baby boomers who aren't financially ready to retire.

However, none of these solutions will result in a permanent staffing resolution, and the problems that precipitated it will only exacerbate over time, likely at an accelerated pace.  Therefore, offshoring is inevitable.

The reasons and justifications for call centers to go offshore are well known within industry circles.  On the con side, the arguments against offshoring include increased management costs and challenges, less-than projected savings, and consumer backlash from the call center perspective, with caller privacy, information security, and identity theft worrying the consumers.

However, these consumer concerns are mere smoke screens for the real objection to offshoring: communication frustration.  We have all heard complaints along the lines of, "I can never understand those offshore agents!"  The reality is that when someone encounters an agent who is difficult to understand or speaks with a strong accent, the assumption is made that they are working from another country.  Conversely, when the agent communicates with articulacy and little noticeable accent, they are deemed to be US-based.  Although there is some truth supporting these assumptions, they are unfortunate stereotypes.  On the contrary, I have spoken to offshore agents who possessed excellent English skills and with no discernable accent, as well as onshore agents who greatly challenged communication efficacy.

To be honestly forthright, I am ashamed to admit that I tend not to have much patience or tolerance concerning people whom I have trouble understanding.  I think that much of the United States feels the same way – even if they are reticent to disclose it.

So, we know that offshoring is inevitable and that consumers are against it.  Fortunately, we have time to prepare.  There are two important tasks.  First, get your house in order by learning how to manage a distributed call center and effectively work with other cultures.  Secondly, though you can't change public opinion against accented agents, you can work with those agents to lessen their accents' impact.

So, forget the horror stories of failed offshoring attempts and the anecdotal accounts of consumer backlash; there are plenty of success stories and more will abound in the future.  Just because offshoring hasn't always worked in the past doesn't mean it's not the answer for the future.

Many foreign governments are diligently seeking call center work for their country.  At some point, the emotional arguments against offshoring will become secondary, and the increasing agent shortage in the U.S. will send call centers offshore in search of qualified and willing agents.  Will you be ready?