Saturday, January 14, 2006

The Call Center in Your House

Business Week reports on a huge trend:
More and more, companies are moving customer service jobs out of high-overhead call centers and into what is possibly the lowest-overhead place in the U.S.: workers' homes. The savings are about more than just real estate, toilet paper, and coffee supplies. JetBlue Airways (JBLU ) is perhaps the most famous practitioner; all of its 1,400 reservation agents work from home. But they are employees. Most of the new homeshoring jobs are independent contractor positions offered by outsourcing companies. The agents are on the hook for their own health care, computer equipment, training -- even background checks.

Outsourced homeshoring jobs grew 20% last year, to 112,000 jobs, estimates tech-market researcher IDC, and will hit 330,000 by 2010. "Offshoring's underestimated sibling, homeshoring, is about to hit a growth spurt," says IDC analyst Stephen Loynd. Office Depot (ODP ), McKesson (MCK ), and J. Crew all use home agents. Homeshoring is less likely to risk the accent fatigue, cultural disconnection, and customer rage that offshoring can inspire. That's not to mention the mounting security fears (once your private data -- credit-card and Social Security numbers, medical and brokerage records -- go overseas, they're beyond the reach of U.S. law).
Another major trend away from stacking people in high rises in old cities with downtowns.The parking is free,no union worker has to take you to work,and you don't have to worry about getting mugged.But,at home the AFL-CIO probably will not hand you a leaflet on the way to the kitchen.You'll want to read the whole article.Another trend away from old Blue American cities because high speed modems have everyone hooked up.