Friday, August 03, 2007

Insourcing

Indian conglomerate Tata has been acquiring / opening call centers in USA! Insourcing has been happening for a while now, but I thought mostly by companies trying to be patriotic or generally more out of concern for the American worker at their own cost. But now, it seems it makes business sense.
In this case the center in Reno is targeted toward companies willing to pay a
premium - its workers there cost up to 40 percent more than their counterparts
in India - to give their U.S. customers a more culturally fluent, less
frustrating 1-800 experience. (No more hearing someone read from a script ten
time zones away.) [Link]

Specifically, Expedia outsources to Tata who insources to a call center in the U.S. because they can understand the geography better and provide a better service.

... and more companies are finding that hiring Americans offers distinct
advantages. Some companies feel hearing a fellow American makes callers feel
more comfortable. Other foreign firms think Americans bring a more
entrepreneurial attitude to their work. In Expedia's case, its call-center
workers need a firm grasp on U.S. geography.


Now I can believe outsourcing is not going to be seen as evil for too long by the American worker. They know their skill set better than their competing counterparts from other countries, and can focus on what sets them apart in the international economy. The world may now be flat, but they can't always beat out the locals at their own business.