Outsourcing Customer Service: Applying The Value Chain As A Method To Improve Service At Call Centers

Abstract

The practice of outsourcing customer support for the information technology sector has grown substantially in the last decade. U.S. companies operating in the low margin personal computer industry maintain this practice is necessary to increase profitability and remain competitive. Firms that make decisions to outsource in lower cost countries need to ensure that customers are satisfied with the level of service provided and minimize negative experiences and irate customers. Because the work of call centers is often outsourced to far flung corners of the world on a lowest bid contract, with an emphasis on transaction costs, levels of service can be uneven. This research examines data from customer satisfaction surveys on personal computers regarding technical support from the manufacturers Dell, Hewlett-Packard, and Apple, which was gathered by Consumer Reports in March, 2006. By comparing the overall satisfaction levels to the companies’ outsourcing policies, some correlations are drawn.  The research concludes with specific recommendations on how to provide higher levels of service with fewer variations through the use of metrics that measure quantifiable results.