One of the foremost decisions in relocating offshore is concerned with
the cost of the labor. In majority of countries outside of the United
States, the salaries of employees are comparatively low. In India, for
example, salaries for customer service representatives (CSRs) can be 80
percent to 90 percent less than those of U.S. agents. Most CSRs in India
have college degrees, whereas in the United States most CSRs have only high
school diplomas (Chanen, 2004). The differences in low labor costs are
stimulating more and more companies to consider outsourcing their contact
centers to service providers in offshore and near shore locations.
At different stages of relocation of a business, travel expenses enter
the picture as well. A trip overseas helps the company CEO and other
managers get comfortable with their choice. After all, offshore vendors can
send they're best and brightest over for a show, but checking out the
company on its home turf provides more insights about the potential of the
The transition period is perhaps the most expensive stage of an
offshore relocation endeavor. It takes from three months to a full year to
completely hand the work over to an offshore area. If company executives
aren't aware of the issue of the transition, there will be no savingsâ€"but
rather significant expensesâ€"during this period.
Cultural differences can often halt the relocation process.
Therefore, one of significant issues for a company to consider in offshore
relocation is to provide offshore employees a comprehensive training
program focusing on business English, accent, culture and technology. This
is followed by process-specific training on back-office processing,
customer service or sales, followed by client-specific training on a
client's values, product, processes and systems.
A company requires to bring offshore employe...