Niyamath Parveez

With so much technology and IT functions for firms to consider, there are many ways to think about how to get the best from them and the budget available. It would be great for every firm to stay at the top end of technology and have all the greatest products but this is not possible. There are many instances where older generations and models are more than capable for doing the job they are asked to but problems can arise from using older models in certain areas. Whether there are networking or communication issues with different rooms or departments, there is a need for firms to review their IT capabilities and ensure they are managing their mix as best as possible. This makes perfect sense and should be considered as good advice by most firms but when a company like Deloitte informs companies to do this, it should be taken as great advice. And this advice should be heeded by local government authorities as well.

Deloitte made the recommendation that local councils and government bodies should look to outsource a great deal of their IT functions and capabilities such as call centers, data centers, networks and even desktops in order to get the best value for money. However, the same advice was followed on with the fact that these bodies should maintain control of their technology and strategy issues in-house. These steps should help to make the best possible cost savings to anybody as well as providing a great deal of benefits as well.

If existing bodies do not believe they have the staffs that are capable of managing the services and functions properly, they may feel it is easier to outsource. With capable training and strong communication between management and staff there is not always the requirement to go running to outsourcing but in some case, it does make sense. This is where a body really needs to weigh up the best decision based on their needs and their budget. It can be straightforward to think that a government body or local council would consider price to be the all important issue. After all, with tax payer’s money at stake, it is important to keep costs as low as possible. However, if obtaining a low cost leads to a poor quality of work being returned, the long terms costs are likely to be higher. This in turn will be in-effective and cause a greater degree of problems and issues.

By outsourcing the physical elements of IT but retaining a skilled staff in house, it should be much simpler for a body to be able to communicate what they need effectively. Having experienced IT workers on board should ensure the outsourcing firm can be talked to properly and misunderstandings should be minimized. This level should also provide a clear link between all levels of staff and outsourced, creating a more focused approach to the work. Outsourcing can be the savior for bodies’ woes but only if it is managed correctly.

It is only human nature to look for the next big thing or the latest craze that is going to sweep the world. This is as true in the business world as it is for consumers so when something major happens, some will look on in admiration whereas others will attempt to muscle in on the act. One of the biggest successes in recent years in the business world has revolved around outsourcing and the success and benefits it has brought to India. The world of call centers has changed dramatically and it seems that India is the new home for outsourcing but that may not always be the case. The early mover benefits will fade away and other nations or regions will be able to gain knowledge faster and will eventually be in a position to challenge and potentially usurp India for outsourcing.

There are many nations that bare casting envious glances at India’s outsourcing riches at the moment but two nations who have genuine ambitions to become the top dog in the industry are Russia and China. In their time, both of these nations have been massive super powers and although there are cultural differences between the two, they may not be as far apart as some would make them out to be.

The past few years has seen a number of observers, columnists and authors pontificating about how China is primed to be the next super-power and the dominant force of this century and on paper, it certainly looks to be the case. Given the population size and the fiercely loyal following to the ruling powers, it is likely that China will be able to galvanize support and enthusiasm in a manner that no other country in the world could. Much like the former Soviet Block during the Cold War but there is a much stronger chance that the Chinese will hold together and take their place at the forefront of world politics.

This has led to Russia closely examining the Chinese model, not politically but with regards to how they are manoeuvring into position for outsourcing and tugging onto the coat-tails may see Russia rise up the list of nations who provide a credible level of outsourcing. The importance of the major or capital city is not one that is crucial when bringing outsourcing to the country. China has recognized this and many of their outlying districts or cities has experienced a boost due to an influx of outsourcing. This additional money to the local economy and the knock-on effect of local employment further pushing the economic cycle in the right direction has been noticed by many nations.

Previously, there would be a drive to have all of the important and influential posts in the major cities but the benefits from rotating the benefits can bring greater joy to a developing or progressing nation. The localization of many posts can also allow specific training or skills to be given to an area, which will greatly improve that regions chance of obtaining certain jobs. Russia is not able to compete on low wages compared to some firms but having a highly skilled and relevant workforce is something that they can easily compete on and this is an area where progress is expected to be made by Russia in the next few years.

One of the most important elements of outsourcing has come about due to the rise of call center culture. The rising importance of customer service and offering people the chance to interact with firms has made call centers essential in so many industries and lines of business.

One American state has decided that enough was enough and that the off shoring outsources tasks was beginning to become a drain on the local economy. It can be seen that as a number of jobs were lost from the local economy, the level of local expenditure would start to contract which would lead to a further reduction in sales. There is a cyclical effect in the economy and anything which causes a downturn is unlikely to be the only affected factor. This has led to many states having concerns about call center workers but not many have been able to do too much about it. The benefit of offshore outsourcing comes from the fact that the level of wages that are able to be paid to the workers are much lower than what they would be paid in most countries. The Western world has long been utilizing the difference in cost of living and wage levels to ensure that they can get cheap labor but there is a now a backlash against this form of business and there are steps to be more proactive with regards to outsourcing.

The state of Tennessee is employing a number of local citizens in a funded call center in an attempt to stimulate the local economy and to build some confidence in the local region. For those people who have the jobs, it is an obvious boost bit there are many questions being raised about the overall suitability or indeed benefit that this move is bringing. The state is clearly funding the jobs heavily because if a firm was really keen to outsource their work, they would offshore with no problem at all so there needs to be an incentive. This means that the taxpayer’s money is being utilized to make this deal more attractive to the firms but even with that in mind, it may still be of benefit to the local economy. Although it is costing taxpayer’s money, if it helps to circulate expenditure and develop spending and local consumer confidence, it will be money well spent by the Tennessee state.

Many people are also angry that whilst there are some jobs up for grabs, many more appear to be heading towards India and away from local people who really need them. The current unemployment levels in Tennessee are extremely high, amongst the highest in the whole of the United States, and it is apparent why local citizens would want more opportunities but of course, it is not always as easy as that.

To be a properly efficient call center operation, there is a need for training to ensure the staff are skilled to the right levels and for some companies, the lure of Indian offshore call center staff is still greater than using local sourced workers, regardless of the benefits it may bring to the local economy.

Call centers fall among that section of those providers that predominantly handle outsourcing and consequently have quite a large impact on the outsourcing industry of any country. Call centers are known for the excellent packages that they provide to the employees, the huge volumes of work they get done every day, and the excellent profits that they make every year. As such, call centers provide very lucrative job options to students who have just left high school and those who have the need for some quick cash. Besides, call centers often provide small but useful perks to employees, such as, free food, pick up and drop facilities, etc.

However, life in call centers is not all rosy for employees. The hectic shifts that employees have to adjust with often take a heavy toll on their health. Many call centers have 8-9 hour shifts officially, but in practice, employees are often made to stay way more than that by their managers. Many employees have to work in shifts of 10-12 hours as a result. The increased work pressure, coupled with the erratic work schedules make many employees fall ill repeatedly, resulting in a drop in their performance levels. On top of that, they are often threatened about losing their jobs or are even dismissed from their job if they cannot fulfill their near-impossible monthly targets. The managerial exploitation, combined with the constant fear of losing the job does not just keep employees on their toes; it also breaks their morale. The rate of attrition rises, and soon the disgruntled employees start looking for another call center with higher salary figures and the promise of better perks.

This scenario has prevailed for quite a few years. But lately, major call centers have taken notice of the fact that the constant leaving of employees and entry of newer employees is actually taking a toll on their reputation among their clients and also the quality of service that they provide to their clients. When a new employee comes in, he/ she has to spend quite some time to get a hang of the job. So, for those days, the new employee will be wasting a lot of time of his/ her seniors, and will be quite unproductive for a lot of time, but still takes the full pay home. Thus, the constant hiring of new employees and the time and resources spent on training them is taking a heavy toll on the profits made by the call center. Everywhere, people employed in managerial positions in call centers are devising new ways of retaining trained employees.

The solution does not just revolve around increasing pay packages or trying to get the workplace more “lively” by purchasing a new music system. The work schedules need to be revised strictly. “9-hour shifts” should stand for 9-hour shifts only, not 12-15 hour extended schedules at no extra salary. This greed of getting more service out of an employee for no extra cost might seem very lucrative to the managers, but in the long run this kind of actions simply end up ruining the reputation of the call center itself. Only through a more humane treatment and strict adherence to work schedules can a call center maintain its reputation and provide quality service to its clients.