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Below is an article from 2004 where Rob O'Malley, who was then the COO of Asian Call Centres in The Philippines was asked for his views on offshore outsourcing.  Rob has written in excess of 100 articles for various publications on the subject of call centres, especially outsourced ones and especially ones based offshore.

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What are some of the current challenges and the advantages and disadvantages of offshore outsourcing?
The obvious advantages to our clients are lower cost and the high status the call centre job has in Asia and hence our ability to employ quality graduates. We have been going through a major internal program over the past 12 months to eliminate the perceived challenges of offshore outsourcing. All challenges stem from the fact that people often view offshore outsourcing as plug and play. Many people think it is only making or receiving a few telephone calls and so how hard can it be?. Well, it can be hard as you have to start from scratch and forget all your pre-conceived assumptions. We have introduced a thorough Implementation Program and it has now eliminated most of these challenges. 

Is outsourcing in places such as India, the Philippines and China still a popular choice for companies looking at reducing over all cost?

Yes in India and The Philippines but not in China. Whilst it is undoubtedly the cheapest place on the planet for manufacturing, anyone who has visited China will know the standard of English is weak and so China really don't an option. In India and The Philippines, the rate of growth is still astounding. 

It is clear that lower wage costs are a definite attraction to offshore outsourcing. What is your opinion on the increased need for reliability of service, do you see this as posing a challenge?
Most definitely but this is becoming harder with decreasing margins. Some companies in India are offering rock bottom prices and rock bottom service. We have proven we can reduce a companies costs by 40% without compromising quality. If you want to reduce costs by more than this, you will definitely have an impact on your quality. There is also a need for some companies in Asia to understand what clients actually want. I have yet to meet a client who wants poorly educated agents with no common sense working on telephone systems which don€™t work and to have no access to the executives in the outsource provider but this is what some offshore outsourcing companies seem intent on providing.

Re-location to certain countries always poses the threat of political turmoil such as civil war, destruction of property or cancellation of licenses or permits. Do you feel that there is enough protection for companies investing billions of dollars to take on such a risk? 
I am constantly asked this question but I feel it is often over hyped. We live in a world of 24 hour news coverage and if you watch CNN, you will think The Philippines is a lawless nation. Anyone who is there will tell you this couldn€™t be further from the truth. President Arroyo€™s Government has proven itself to be €œpro business€ and €œpro call centre€ and so the idea of cancellation of licenses is very far-fetched. Obviously, you have to protect your interests and make appropriate contingency plans but that is true of business anywhere in the world. 

What are some of the issues that you see resulting in the migration of call centers from countries such as the Uk to India, when research has shown that consumers still prefer to speak to someone local? Also, on that note what do you think of call centers giving staff˜mock American or British personalities to try and convince consumers that they are speaking to a local person?
The accent issue really isn't too much of a problem in The Philippines as they sound American and (believe it or not), The Brits actually like speaking to Americans. I believe the bigger issue is with agents who can't think in English. This isn't true in The Philippines but it is true in India.

Recently, there has been a law introduced in New Jersey trying to oppose the migration of call centers to India. Do you see legislation posing a problem for future offshore outsourcing? How do you feel companies will react? 
Similar legislation was tried for every industry which ever migrated to low-cost base locations such as textiles and electronics. They have all failed and so will this legislation. 

What tips would you give prospective companies looking at outsourcing overseas?
Go for a company which will reduce your costs by 30-40% and increase your service as opposed to reduce your cost by 70%. If you stick by this rule, you won't go far wrong.

 

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