Two sides of call center outsourcing and their effects to US employment

OABPO Blog Team Published on March 3, 2014

call-center-outsourcing
Call center outsourcing, or any type of offshoring activity, has positive and negative effects on US employment, according to a research conducted by the University of California, Berkely (UC Berkely) and the Massachusetts Institute of Technology (MIT).

On the good side, outsourcing bolsters the American labor force by generating additional jobs in the mother country. Sending work overseas enables businesses to gain industry expertise and penetrate foreign markets, thus giving way to their expansions both in overall revenues and local manpower count.

call-center-outsourcing--

Its disadvantage, the study said, is that the job sorting only favors workers with high-paying positions, while manual laborers suffer. The research also noted that the majority of companies engaged in outsourcing is under the production sector, which means that subcontracting activities have implications on US manufacturing.

“While offshoring appears to be complementary to US employment in that it is associated with a relative increase in higher-paid jobs, it could be undermining lower-wage jobs,” said UC Berkeley economics professor Clair Brown, one of the researchers behind the study. The professor disclaimed, however, that in their initial study (based on 2010 stats), they didn t estimate how globalization has affected the total number of domestic jobs.

High-cost outsourcing

One of the study’s findings contests one common assumption about outsourcing: nearly the majority of outsourced jobs go to local firms in the United States, and barely a quarter of the total sent-out jobs goes to offshore locations.
A break down of the gathered numbers inferred that:

  • Domestic outsourcing concentrates on IT services, transportation, and facilities maintenance.
  • An average of 6% of business functions of manufacturing companies are outsourced locally, while 10.5% are outsourced abroad.

“The portrait that emerges is of two economies - an entirely domestic one made up of small firms and public organizations, and another one consisting of large firms with much deeper global engagement,” explained MIT’s Tim Sturgeon, coauthor of the research.
Moreover, most of these overseas jobs don t go to low-cost manufacturing, back office, and call center outsourcing destinations like India and China. Instead, they are sent to high-cost countries in Western Europe and to Canada. This trend further fortifies two truths about the practice of outsourcing:

  • Service quality is prioritized over cost efficiency.
  • The belief that offshoring erodes US employment is overblown and unsupported.

The researchers forecasted that the US economy will grow along with outsourcing and offshoring activities. Brown said, “The recovery allows companies to restructure and expand through more offshoring and outsourcing, instead of just rehiring and returning to old practices. This could certainly affect US jobs adversely. We would need to conduct a follow-up survey to understand how companies structure their businesses globally and domestically.”

Open Access BPO uses the best technologies and the reliable communication channels to ensure unhampered call center operations.

Join us on facebook
Open Access BPO 3 days ago
๐— ๐˜‚๐—น๐˜๐—ถ๐—น๐—ถ๐—ป๐—ด๐˜‚๐—ฎ๐—น ๐—ฎ๐—ป๐—ฑ ๐˜€๐—ฒ๐—ฐ๐˜‚๐—ฟ๐—ฒ ๐—ผ๐˜‚๐˜๐˜€๐—ผ๐˜‚๐—ฟ๐—ฐ๐—ถ๐—ป๐—ด ๐—ฑ๐—ฒ๐—ณ๐—ถ๐—ป๐—ฒ๐˜€ ๐˜๐—ต๐—ฒ ๐—ฒ๐—ฑ๐—ด๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐—ด๐—น๐—ผ๐—ฏ๐—ฎ๐—น ๐—ฏ๐—ฟ๐—ฎ๐—ป๐—ฑ๐˜€.

International businesses thrive when customer trust, #DataSecurity, and language inclusivity are built into every interaction.

๐Ÿ’ก Learn how secure #multilingual #outsourcing empowers global brands to expand confidently across borders: https://buff.ly/ZHo7Xbd

#OpenAccess
#BusinessGrowth #StrategicOutsourcing
#FutureOfWork #CX #GlobalBusiness
Open Access BPO 17 days ago
How do you measure an outsourcing partnerโ€™s true stability? Look beyond the SLA. Real commitment means sustained, need-driven investment in the community, not one-off gestures.

#OpenAccess recently partnered with Foundation of Balay Pasilungan, a non-profit oragnization in Davao, to provide essential donations and volunteer support for disadvantaged children.

This builds on our annual commitment to community impact through initiatives such as school-building, animal shelter support, and tree-planting.

Read more about our team's volunteer experience here:
https://buff.ly/9vCE5C6

#OpenAccessCares #CSR
#CommunityImpact #givingback
#CommunityOutreach
Open Access BPO 18 days ago
๐—ฆ๐—ฐ๐—ฎ๐—น๐—ถ๐—ป๐—ด ๐˜€๐—บ๐—ฎ๐—ฟ๐˜๐—ฒ๐—ฟ ๐—ถ๐—ป ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฒ ๐—บ๐—ฒ๐—ฎ๐—ป๐˜€ ๐˜๐—ฎ๐—ฐ๐—ธ๐—น๐—ถ๐—ป๐—ด ๐—ฐ๐—ต๐—ฎ๐—น๐—น๐—ฒ๐—ป๐—ด๐—ฒ๐˜€ ๐—น๐—ถ๐—ธ๐—ฒ ๐—ฟ๐—ผ๐—ด๐˜‚๐—ฒ ๐—”๐—œ, ๐—น๐—ฎ๐—ป๐—ด๐˜‚๐—ฎ๐—ด๐—ฒ ๐—ฏ๐—ฎ๐—ฟ๐—ฟ๐—ถ๐—ฒ๐—ฟ๐˜€, ๐—ฎ๐—ป๐—ฑ ๐—ด๐—น๐—ผ๐—ฏ๐—ฎ๐—น ๐—ฐ๐—ผ๐—บ๐—ฝ๐—น๐—ถ๐—ฎ๐—ป๐—ฐ๐—ฒ ๐—ต๐—ฒ๐—ฎ๐—ฑโ€‘๐—ผ๐—ป.

#Outsourcing partners are now the bridge between innovation and resilience, helping businesses thrive in uncertain times.

๐Ÿ’ก Discover how strategic outsourcing transforms these roadblocks into growth opportunities: https://buff.ly/LfisKAl

#OpenAccess
#BusinessGrowth #StrategicOutsourcing
#FutureOfWork #CX #GlobalBusiness
Open Access BPO 19 days ago
#Startups grow fast, but scaling #CustomerExperience often lags behind.

#AIโ€‘powered CX #outsourcing helps founders and teams keep pace by combining #automation for routine tasks with human expertise for complex interactions.

The result? Faster resolutions, leaner operations, and a support model that flexes with demand.

If you're building a business that's ready to scale smarter, this is worth a read!

๐Ÿ‘‰ Discover how AIโ€‘powered CX outsourcing helps startups grow without the usual growing pains: https://buff.ly/dGWZu9q

#OpenAccess
Open Access BPO 49 days ago
๐—ข๐—ฝ๐—ฒ๐—ป ๐—”๐—ฐ๐—ฐ๐—ฒ๐˜€๐˜€ ๐—•๐—ฟ๐—ถ๐—ป๐—ด๐˜€ ๐—›๐—ผ๐—ฝ๐—ฒ ๐˜๐—ผ ๐—–๐—ต๐—ถ๐—น๐—ฑ๐—ฟ๐—ฒ๐—ป ๐—ง๐—ต๐—ฟ๐—ผ๐˜‚๐—ด๐—ต ๐—ข๐˜‚๐˜๐—ฟ๐—ฒ๐—ฎ๐—ฐ๐—ต ๐˜„๐—ถ๐˜๐—ต ๐—™๐—ผ๐˜‚๐—ป๐—ฑ๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—ผ๐—ณ ๐—•๐—ฎ๐—น๐—ฎ๐˜† ๐—ฃ๐—ฎ๐˜€๐—ถ๐—น๐˜‚๐—ป๐—ด๐—ฎ๐—ป | https://buff.ly/jg8HvYF

Open Access recently partnered with the Foundation of Balay Pasilungan Inc. in #Davao for a community outreach initiative that brought together our employees to support children through donations and meaningful engagement.

On June 4, Team #OpenAccess Davao team donated milk and clothing and spent time with the children through games and interactive activities, creating moments of connection, encouragement, and joy.

We're grateful for the opportunity to work alongside organizations like the Foundation of Balay Pasilungan, whose dedication to supporting vulnerable children continues to make a lasting difference in the community.

๐˜š๐˜ฆ๐˜ฆ ๐˜ฉ๐˜ฐ๐˜ธ ๐˜ข ๐˜ด๐˜ช๐˜ฎ๐˜ฑ๐˜ญ๐˜ฆ ๐˜ฅ๐˜ข๐˜บ ๐˜ฐ๐˜ง ๐˜จ๐˜ช๐˜ท๐˜ช๐˜ฏ๐˜จ ๐˜ฃ๐˜ฆ๐˜ค๐˜ข๐˜ฎ๐˜ฆ ๐˜ข ๐˜ฎ๐˜ฆ๐˜ข๐˜ฏ๐˜ช๐˜ฏ๐˜จ๐˜ง๐˜ถ๐˜ญ ๐˜ฆ๐˜น๐˜ฑ๐˜ฆ๐˜ณ๐˜ช๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ ๐˜ง๐˜ฐ๐˜ณ ๐˜ฆ๐˜ท๐˜ฆ๐˜ณ๐˜บ๐˜ฐ๐˜ฏ๐˜ฆ ๐˜ช๐˜ฏ๐˜ท๐˜ฐ๐˜ญ๐˜ท๐˜ฆ๐˜ฅ: https://www.openaccessbpo.com/blog/open-access-balay-pasilungan-outreach/

#OpenAccessCares #CSR
#CommunityImpact #givingback
#CommunityOutreach
Open Access BPO 87 days ago
Inclusive corporate cultures aren't built by accident, they are cultivated through continuous dialogue.

We recently brought our global teams together (both onsite at our Makati headquarters and virtually across our Davao, Taipei, and Las Vegas offices) for a dedicated Pride Talk focused on championing allyship and open communication in the workplace.

Led by Psychologist Riyan Portuguez, ๐˜ฝ๐™š๐™ฎ๐™ค๐™ฃ๐™™ ๐™ฉ๐™๐™š ๐™๐™–๐™ž๐™ฃ๐™—๐™ค๐™ฌ: ๐˜พ๐™ง๐™š๐™–๐™ฉ๐™ž๐™ฃ๐™œ ๐™Ž๐™–๐™›๐™š ๐™Ž๐™ฅ๐™–๐™˜๐™š๐™จ ๐™๐™๐™ง๐™ค๐™ช๐™œ๐™ ๐˜ผ๐™ก๐™ก๐™ฎ๐™จ๐™๐™ž๐™ฅ focused on actionable frameworks to strengthen our culture of openness.

By engaging our cross-border teams in these crucial conversations, we improve workplace collaboration and ensure that every member of Team Open Access feels empowered to contribute authentically.

Cultivating an environment of safety and equality remains one of our highest priorities as a global organization.

#OpenAccess
#WovenInPride #OneWithDiversity
#OASpeaksWithPride #PrideAtWork