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Why American Companies Rely on Outsourced Call Centers

by soniaroody

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Is outsourcing crippling the American workforce? Pundits and so-called business experts claim that business process outsourcing, which involves giving jobs to employees based outside the United States (many of which are in developing countries), is robbing Americans of the jobs they deserve. Despite this accusation, why is the BPO industry still thriving to this day?

The answer lies in the underlying motivation of companies for outsourcing job responsibilities to another country. The primary reason outsourced services are so popular is because they are so affordable. For instance, a data entry specialist based in India gets around $300 a month, while his American counterpart earns at least four times the amount for the same amount of work.

It may sound insignificant when an analogy refers to a single employee (as in the comparison earlier), but when companies hire outsourcers, they usually haul in anywhere from 20 to 200 employees to work on an “account” such as customer service hotline or a tech support hub. Are you starting to see the bigger picture? Business process outsourcing is a popular alternative for companies because it saves money, which can be spent on departments that badly need it, such as research and development.

However, it is known among businesses that employ BPO services that a bottom threshold must exist to hiring someone outside the country for drastically less. Otherwise, since the quality of service needs to maintain its top-notch reputation, companies need to accept that some business process outsourcers will not accept hiring contracts that are just stingy on the budget. One must take into account that a BPO company does have investments, after all.

In a call center, the infrastructure in place helps them to offer superior customer service. Thus, infrastructure needs to be constantly upgraded in order for the company to provide top-notch service to clients. Moreover, upgrades cost money.

Thus, there is a substantial risk when hiring a call center whose fees are dirt-cheap. If it sounds too good to be true, you’re better off with a contract from a more reputable company that may cost a bit more, but you are assured at the very least that you’re getting your money’s worth with excellent customer service.

Here is another advantage of outsourcing that you probably did not expect to read in this article—outsourcing benefits American workers, especially those who offer freelancing gigs such as writing, software development, and back-office work. Go to for more information on how Internet-savvy Americans gain from the outsourcing trend popularized by many a call center around the world.

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