Portal’s Outsourcing Decision. Should Portal offshore its customer service function? Should Portal offshore its customer service function?

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Presentation transcript:

Portal’s Outsourcing Decision

Should Portal offshore its customer service function? Should Portal offshore its customer service function?

Yes. Yes. Intense competitive pressures requires Portal to outsource its call center services to India. Intense competitive pressures requires Portal to outsource its call center services to India. Lower costsLower costs Extend is a specialist in call center services. Portal should focus on its “core competence”.Extend is a specialist in call center services. Portal should focus on its “core competence”.

If so, how much? How can it complete transition as painlessly as possible? What are the future implications of offshoring? If so, how much? How can it complete transition as painlessly as possible? What are the future implications of offshoring?

100% of the call center facilities should move. 100% of the call center facilities should move. Potential problems and future implications: Potential problems and future implications: Resistence of workersResistence of workers Fear of further downsizingFear of further downsizing Legal issues regarding outsourcing in India (tax laws, etc)Legal issues regarding outsourcing in India (tax laws, etc) Legal issues regarding labor unionsLegal issues regarding labor unions May affect company’s reputation (if the service quality does not improve)May affect company’s reputation (if the service quality does not improve)

Communication is a must. The company should communicate the downsizing process to the current employees. Communication is a must. The company should communicate the downsizing process to the current employees. To minimize the concerns of current call center employees.To minimize the concerns of current call center employees. To minimize the concerns of the employees in other departments of the firm.To minimize the concerns of the employees in other departments of the firm. Discuss and negotiate with the current workers. Discuss and negotiate with the current workers.

How can Portal balance the concerns of its stakeholders? How can Portal balance the concerns of its stakeholders?

Employees: Employees: NegotiotionsNegotiotions CommunicationCommunication Customers Customers Information regarding better serviceInformation regarding better service Reputation managementReputation management Extend Extend Training of the workersTraining of the workers Technical training Technical training Language training (emphasis on US accent) Language training (emphasis on US accent)