| Experts from the University of Richmond and | | | | Furthermore, the study reveals the main reason why |
| University of Michigan studied the effects of offshore | | | | offshore outsourcing thrives is the promise of lower |
| outsourcing on customer satisfaction from 1998-2006. | | | | operation cost. The other reason is the viability of the |
| Prof Jonathan Whitaker, M. S. Krishnan, and Claes | | | | host country for the vendor's operation. Then again, |
| Fornell used the American customer satisfaction index | | | | this harks back at research result number 1. |
| in interpreting the results. | | | | The study suggests, for offshore outsourcing |
| The study involved in-house and offshore customer | | | | companies to win back and maintain customer |
| service. Customer satisfaction declines markedly with | | | | satisfaction, they should: |
| offshore customer service, but ironically the decline is | | | | 1. Make sure the vendor gets access to complete |
| as marked as the decline with local outsourced | | | | customer information. This allows the vendor to |
| customer service. The result cancels each other: This | | | | understand customer needs and values. |
| suggests that there are other reasons why customers | | | | 2. Offshore and outsourcing vendor should have |
| are not happy about offshore and leased staff | | | | enough decision-making right to answer customer |
| services. And these reasons are common to both | | | | issues. This calls for a Quality Assurance specialist to |
| offshore and local outsourcing. Whatever those | | | | resolve customers' issues. When this is not met, the |
| reasons are, it's too early to tell, especially at this point. | | | | client gets upset, moves to another place, or hires |
| Surprisingly, the result paints a balanced picture, | | | | another offshore service vendor. |
| notwithstanding the bad American economy. The | | | | On the possibility that customers can be won over by |
| research says: | | | | vendors passing cost savings to customers, the |
| 1. There is negative impact on customer satisfaction. | | | | answers is, No: Customers benefit more from |
| Very broadly, offshore outsourcing turns off | | | | delivered value. Case in point: In 2004 E- loan gave its |
| customers mainly because of cultural and language | | | | customers the chance to choose where to process |
| issues. | | | | their loans, in the US and in India. E -loan offered the |
| 2. There is no negative impact on offshore vendors' | | | | same loan cost, but loans processed in India would |
| services. Many offshore and leased staff specialists | | | | approved faster. 86 % of E Loan customers chose |
| started out as IT providers, so they can assure less | | | | India over the USA. Customers got value and they |
| business risks with their reliable support systems. | | | | took it positively. |
| Offshore and leased staff specialists handle customer | | | | On closer inspection, the study proved nothing new. |
| information well, that's why there is no noticeable | | | | Age-old customer satisfaction style still rules: Give me |
| negative effect in this regard. This evens out the | | | | value for my money. |
| perceived customer dissatisfaction mentioned above. | | | | |