Supply Chain Management Essay
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During strategic planning by an organization’s top hierarchy, an analysis of the company’s strengths and weaknesses takes place that leads to an identification of the company’s core competences. Activities other than core competences are usually arranged offshore in order to make use of inexpensive labor and other benefits. However, offshoring is now seeing a decrease as US companies are shifting their call centers onshore. There are many reasons behind this change of decision, including the demand for better service, rising offshore costs and creation of employment in the home country.
The decision to shift call centers onshore is mainly due to customer demand and the issues being faced due to offshoring. Even UK firms are moving their call centers back to their home country mainly because customers prefer call centers in the UK rather than offshore (“UK firms decide it's time to hang up on Indian call centers”). Language and communication problems contributed the most towards exacerbating customer satisfaction (“Back in the USA: Call Center Jobs Return”). It has even become a selling point for some companies that they have their call center in the USA because customers find it more convenient to obtain help from an American rather than an Indian or a Filipino, mainly due to communication problems.
Moreover, overseas labor costs have also seen a rise in the recent years (“Back in the USA: Call Center Jobs Return”). Lastly and most importantly, America has been going through a rough spell in which unemployment levels reached a high percentage. Call centers bring thousands of jobs back to the USA. Therefore, it adds to the company’s image as it creates new jobs for the locals.
The above factors have therefore led to a shift of call centers from overseas to the home country.
“Back in the USA: Call Center Jobs Return.” Firstcoastnews. FCN First for You, 11 Aug. 2014. Web. 30 Mar. 2015.
“UK firms decide it's time to hang up on Indian call centers.” Independent.co.uk. Independent, 9 July 2011. Web. 30 Mar. 2015.
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