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	<title>Voices of CRM &#187; Call center outsourcing</title>
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		<title>What if Schumer&#8217;s call center outsourcing tax becomes law?</title>
		<link>http://itknowledgeexchange.techtarget.com/voices-of-crm/what-if-schumers-call-center-outsourcing-tax-becomes-law/</link>
		<comments>http://itknowledgeexchange.techtarget.com/voices-of-crm/what-if-schumers-call-center-outsourcing-tax-becomes-law/#comments</comments>
		<pubDate>Wed, 02 Jun 2010 20:13:10 +0000</pubDate>
		<dc:creator>Barney Beal</dc:creator>
				<category><![CDATA[Call center outsourcing]]></category>

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		<description><![CDATA[Sen. Charles Schumer (D-NY) has offered up some legislation intended to limit call center jobs that are outsourced overseas. Under the proposed legislation, businesses would have to disclose when and where a call is transferred to an overseas location as well as face a $0.25 excise tax on a customer service call placed overseas. Let&#8217;s [...]]]></description>
				<content:encoded><![CDATA[<p>Sen. Charles Schumer (D-NY) has offered up some <a href="http://news.yahoo.com/s/nm/20100530/pl_nm/us_usa_outsourcing" target="_blank">legislation intended to limit call center jobs that are outsourced overseas.</a></p>
<p>Under the proposed legislation, businesses would have to disclose when and where a call is transferred to an overseas location as well as face a $0.25 excise tax on a customer service call placed overseas.</p>
<p>Let&#8217;s leave the politics of it all aside for a moment. There&#8217;s plenty of blogs out there questioning how committed Schumer is to this, how much is grandstanding, mid-term elections or making a play for the Senate leadership should current Majority Leader Harry Reid be defeated in Nevada.</p>
<p>We&#8217;ll also leave aside the chance of this legislation actually becoming law as well.</p>
<p>Assuming for now that it does, it would put a serious damper on the offshore outsourcing business &#8212; at least the tax would. Sure, there&#8217;s a big difference in salaries between Buffalo and Bangalore, but $0.25 per call could add up pretty quickly. If only part of that legislation passes and it&#8217;s a matter of telling customers where there call is going, I think most people won&#8217;t object to strenuously &#8212; particularly if the alternative means paying for their calls to customer service.</p>
<p>In fact, that&#8217;s something that&#8217;s been getting some attention. John Ragsdale, at Eye on Service, has already <a href="http://jragsdale.wordpress.com/2008/12/15/the-end-of-free-consumer-support-finally/" target="_blank">called for the end of free customer service for highly technical support</a>. Companies like <a href="http://www.plumchoice.com/" target="_blank">Plumchoice</a>, <a href="http://www.support.com/" target="_blank">Support.com</a> and <a href="http://www.supportspace.com/" target="_blank">SupportSpace</a> are already offering for-fee technical support to consumers, he notes.</p>
<p>Additionally, should the option of low-cost, overseas call centers be removed, more companies will likely turn to the at-home agent model. While an at-home agent in North America is still going to demand a higher salary than an agent in India, they&#8217;re typically willing to sacrifice some salary for flexibility and providing a lower-cost alternative than the in-house agent.</p>
<p>Certainly, self-service technology would see a surge in investment. The one thing cheaper than an offshore agent is a piece of software. Of course that&#8217;s only if it works. If your customer gets fed up and takes their business elsewhere, there&#8217;s some different math involved.</p>
<p>Or maybe, just maybe, Schumer&#8217;s bill would force companies to stop focusing on cost savings in the call center and start focusing on treating call centers as a profit center by taking advantage of upsell and cross-sell opportunities and on improving the customer experience.</p>
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