My recent stories about American Idol inflamed reader passions from many perspectives. Sanjaya aside, the idea of American companies out-sourcing jobs to India or anywhere else offends many people. Some readers of American Idol: Are Indian call centers skewing the vote? thought I was singling out the people of India which they interpreted as hostile and racist. I thought I would set the record straight about my views on the subject.
- The jobs we are sending overseas to India, or elsewhere, is not affecting the employment rate in the United States to any appreciable level. Last I read the unemployment rate stood at 4.5%. It has been hovering between 4% and 5% for several years. To me that is actually close to full employment in a market society as complex as ours. I have no expectation that we could sustain anything lower.
- Our connection and developing relationship with India in particular is extremely valuable. I believe India has as much potential as any nation, and more than most, to help us expand our economy. It's size, value system, geographic location, history, English foundation, and more make it a great partner. There is much more to gain than to lose for both sides.
- The fluidity of markets and the greatest transparency in business dealings should be our focus and the word globalization is sometimes a distraction. It is not specific and means different things to different people. Integration is a better word. International partnering is a better term. Since the market is becoming more and more fluid we have not only witnessed call-centers and software development moving overseas, but in some cases they are coming back as companies experiment and decide they function better with local talent and control.
One of the greatest ironies I find in this whole discussion is that the people that complain about the outsourcing of work to other countries are the same ones that complain if a foreign company comes to set up shop in the United States - bringing jobs here!
- On a separate note many people thought that by raising the idea of Indian call-centers potentially swaying the American Idol results I was being racist. From my perspective based on demonstrated talent at the pre-twelve round, Sanjaya moving forward was bizarre, and I was stretching and found perhaps an equally bizarre rational. Nevertheless many uninformed readers commented that this is not possible, my research suggests it is and that can be found at the end of the original story, if anyone is interested. To those so sensitive to any discussion containing race or national origin, (or anything else) I apologize if I offended, it certainly was not my intention. That said, all topics should be open for discussion, I have no hidden agendas and appreciate any civilized comments or opportunities to grow.
Of equal importance in this discussion should be peace on earth. It is well-documented that the closer relationship two countries have economically the less likely they are to fight. From an environmental perspective we have no choice but to think globally because the air and water and weather keep ignoring our artificial man made boundaries. In conclusion we have everything to gain and little to lose and I take no issue with call-centers. We should make our entire focus quality of service and maintaining a level playing field. That is worthy of our concern and our effort.
Disclosure: I invest in international stocks, including ICICI Bank ADS (NYSE: IBN) one of India's largest private banks.
Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.
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Reader Comments (Page 1 of 1)
3-28-2007 @ 10:37PM
Rebecca F.Ethridge said...
I wonder if these people voting for the worst, realize the impact they have on the deserving contestants lives?
3-29-2007 @ 8:46AM
richard saunders said...
At the end of the day, overseas call centers may save $$$ but are a disaster for customer service. How can a bunch of people in India ultimately care about satisfying customers in a society and community (the U.S.) with which they have no connection? How can there be any serious quality control? The world is turning into call center hell!
3-28-2007 @ 8:15PM
Bill said...
I get it! I get the joke: Vote for the worst! It was a bit humorous to see a minimally talented performer make it to the final 12.., then to the final 10. Now, its no longer funny. Now legitimately talented people are in jeopardy of losing their opportunity to showcase their talent in favor of this played out farce. Its also kind of unfunny to see this kid put on the brave face and embarrass himself way beyond his 15 minutes...
3-28-2007 @ 9:38PM
Sheldon L said...
Rich,
I think you mean "voice mail hell". The people manning the Indian call-centers are very curteous, try very hard to be helpful, and are studying our culture to be even more responsive. We on the other hand spend very little effort to understand anyone else.
Peace
3-30-2007 @ 2:15PM
brenda cowgill said...
I THINK MALAKHAR SHOULD GET HIS ASS KICKED OFF NEXT WEEK FOR SURE AND WHAT HE DID TO HIS HAIR WAS A DISGRACE TO ME AND MY PEOPLE. THE CHEROKEE, HE WAS MAKING FUN AND IT WAS NOT FUNNY. I AM SURE HE WILL HEAR FROM ALL KINDS OF INDIANS, AND HE DESERVES IT. THANK YOU
3-29-2007 @ 2:22AM
Scott said...
I work for an inbound customer service company, and I don't see why people are so afraid of companies in India getting jobs. My company handles customer service for over 40 Fortune 500 companies, and many of our main clients will never go to offshore call centers. And the biggest international clients that we use our call centers in the states (Texas/Illinois/Iowa), Montreal, Phillipines, and in India. In the US, we can train a class of 40-50 people for a particular CS job, and by a month after the class graduates training there is only about 5 or so people left, and that number dwindles down to 1-2 after another month. But our call centers in India and the Phillipnies don't really have this kind of issue as much as we do... these are just jobs that a lot of American's dont want. What do you expect companies to do??
3-29-2007 @ 6:21AM
Jaime said...
I do not know where you are geting your info about Indian Call centers not affecting unemploment appreciably here. I have to many friends in the Airline industry alone that have been replaced by people from india.
On a separate note If you think that your company is saving money by using these centers I must tell you. When a company employs workers contractors and other wise. that cannot speak english Clearly you are sending me a message that my business is not important to you. That is fine with me. You wanna know why? Because your competitor likely wants it instead. And if I call and I get business that dont even have the decency to hire American workers to see to their customers need. I find another business that does want my money. We have Americans that do need to eat here and when we ship enough jobs over there.do you think the dollar per hour they make is going to stretch far when they vacaton here?
3-29-2007 @ 6:20AM
Jaime said...
Scott, I am looking at the upside of all of those positions you train these people for and I count workers HERE tht need to eat. I see people that are being diminishd in ways that sicken me.
Re" All of the idians are courteus and friendly and helpful. I have 2 words going through my mind BULL is one of them.
3-29-2007 @ 9:01AM
Bobby said...
The supposition that just because the unemployment rate in the U.S. has not risen significantly, Indian call centers must not be affecting U.S. job opportunities is WAY off base. First of all, the way the unemployment is tracked in the U.S. is WAY off from reality and only factors workers currently collecting unemployment into the equation. Most workers are no longer eligible to collect unemployment at the end of six months and are therefore factored out of the equation even though they are obviously still unemployed. Secondly, if over the course of the year, 5 million U.S. workers lost $10-11/hr call center jobs and were forced to take $6/hr Walmart & fast food jobs, none of this would be reflected in unemployment statistics since unemployment statistics do nothing to track the quality of jobs people are doing and simply report the percentage of the workforce collecting unemployment benefits at that time. So your suppositions are entirely too simplified and don't take into account the true nature of U.S. unemployment statistics. The reality is that the poverty rate has gone through the roof during the Bush administration, and outsourcing of jobs to places like India and China is one ot main things pushing this upward trend in the U.S. poverty rate.
3-29-2007 @ 9:22AM
HAROLD said...
SIMPLY,HANG UP WHEN YOU GET A CALL FROM INDIA.SOONER OR LATER A AMERICAN REP WILL. CALL.SIMPLY TELL THE CALLER YOU CAN'T EXCEPT CALLS FROM INDIA OR OTHER COUNTIRES,THAT ARE CALLING FOR AMERCIAN COMPANIES. PLEASE BE POLITE. ALL CALLS ARE RECORED SO SOONER OR LATER THE COMPANIES WILL SEE THEIR MISTAKE.
3-29-2007 @ 9:51AM
Linda said...
When I call customer service, I want someone knowlegeable. But if I can't understand a word they are saying, it doesn't matter if they are knowledgeable or not. I simply hang up. But what I'll do from now on is tell them I can't understand a word they are saying so it is recorded. Sheldon, I can't see how you can say they aren't taking jobs away from us. Get a clue buddy!
3-29-2007 @ 9:59AM
mimi said...
Hi Scott
Scott would you let me know where I could
apply for CR position with a call center that hires here in the states with a decent wage?
Thanks!
3-29-2007 @ 11:28AM
J.B.S. said...
WHY NOT DO THIS ?? When "FOREIGNERS call, tell them to immediately put you through to their supervisor,
(which is also recorded) and tell the supervisor,
that if an AMERICAN COMPANY wants to do business with you then for them to connect you immediately to an AMERICAN TELEMARKETER OR CUSTOMER SERVICE
REPRESENTATIVE LOCATED "IN" THE UNITED STATES otherwise you do NOT wish to talk to OR do business with that company ever again !!
THIS will get the message out MUCH faster if every recording they hear HAS THIS MESSAGE !!
3-29-2007 @ 11:54AM
Michael Sievers said...
Mimi, I hate to tell you but the call centers in the States don't really have a decent wage, unless you upsell products to customers who call in. Anyway, some of the ones that i can think of on top of my head is Talk2Rep, Call Source, TelerX, Affina, Afni.. just depends where you live. What I love is that Americans are the only ones that have the problem with this.. And I'm sorry, that will not help you at all. All calls are not recorded, many times it depends on our clients needs/requiremenets. And if they all, only a minority of them are monitored for quality assurance of our reps. And do you know what the team leads/supervisors (the people who do the monitoring) do when the hear you griping about outsourcing? We laugh, then move on. Grow up people, it's a world economy now. If you don't want jobs to move out of the country, then become a more valuable workforce.
In addition to that, job growth projection has our jobs expanding at a rate faster than we can actually FILL jobs in the US. A lot of people may be unemployed, but that doesn't mean they are really looking for work.
3-29-2007 @ 11:11PM
Leo Rivera said...
You comments about jobs going to India and not affecting our unemployment rate is just plain wrong. My last two employers were major corporations that moved in to our area, built call centers stayed about 4 years and then closed down, losing about 600 jobs and 500 jobs respectively. One was a major personal finance company that I was at from 1994-1997 and that same year a major computer company set up a new call center and I was there from 1997-2001. Both companies shut down several call centers at the same time and if you call them today, their calls are answered by far East Indian reps. Hundreds of us were laid off at the same time, try getting a job when all tech support reps are on the street at the same time. I know first hand how our unemployment is affected by Indian call centers. The majority of employees were very happy there, made decent money and loved our company and the work environment. We did not have a choice. I am all for US companies hiring US reps in US call centers.