All projects: Gel, Jobs, Gootodo, Games, Uncle Mark, Goovite, Blog, Bit Literacy
Effects of outsourcing customer service
MIT's Sloan Management Review on the effects of outsourcing:
We analyzed the offshoring and outsourcing activities of 150 North American companies and business units from 1998 to 2006. As a group, those that outsourced customer service saw a drop in their score on the American Consumer Satisfaction Index ... The declines were roughly the same whether companies outsourced customer service domestically or overseas. ACSI scores tend to move in the same direction as companies' share prices.
Companies that outsourced customer service tended to see a share price drop of 1% to 5%.
(Thanks, Phillip)
The reason for that declination is bad customer service. Customer service rep. should attain their responsibilities for customers needs with good interactions as well.
So are you implying that companies that didn't outsource their customer service saw an increase in share price? Would be great to see the numbers that back this claim.
No, he's implying exactly what the article says: companies that outsourced their customer service saw drops in the ACSI. The article doesn't seem to indicate how companies that didn't outsource their customer service performed, so you can only walk away with conclusions about what it covered.
You can't even make a better/worse comparison, because there's no data about the companies who did not outsource customer service.
I agree with Sam. It raises a lot of (interesting) questions about causality. One reason could be that the companies that decide to outsource support, don't spend a lot of resources on "quality" in the first place, whether in their products or in their service.
From the article: "One way to mitigate the damage from outsourcing customer service is to invest the money the company saves to improve the quality of the company's products or services, or to cut prices, rather than simply pocket the savings as extra profit. Our findings suggest that this isn't happening in most cases."