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FC Member Blog

The Double-Edge Sword of Auto Outsourcing

BY Dennis GonierThu Dec 11, 2008 at 3:32 PM
This blog is written by a member of our blogging community and expresses that member's views alone.

A complete lack of innovation . . . failed opportunities to show vision and innovation . . .complete failure to offer RELEVANT PRODUCTS to the average American public.  And now, let’s add another black mark on the record of the big three automakers: offshore outsourcing of customer service.

Our new President-Elect believes strongly in bringing jobs back to America – he was elected to lead us to renewal.  We now have a struggling economy and an unemployment rate that is rising daily as the current recession widens. Right now, AT&T is laying off up to 12,000 people. TWELVE THOUSAND!

But regardless of all of these things, some automakers continue to outsource the call centers for their finance companies to other countries.

I mean…really?

Right now, executives from the big three have parked their hybrids in front of the capital and are begging for a line of credit that will help them survive the next few months of the credit crunch and economic downturn. If Congress does give it to them, I say it should come with some conditions. The most important of which is to stop outsourcing and bring these jobs back to America.

Not only would this generate jobs and help the economy, but it will help these companies’ bottom lines. Why? TARP has done extensive research and has the data from years of studying the customer experience for major automakers. Our research shows that the negative impression and poor customer service that arises from off-shore call centers actually COSTS AUTOMAKERS MORE MONEY THAN IT SAVES IN THE LONG RUN.

Offshoring has done nothing but drive consumers away from American brands, hurt our economy and cost us jobs. Uncle Sam should, and probably will, help the automakers in some way, but that money should demand that outsourcing ends.

Topics:

Innovation, Leadership, Management, customer service, profit of interaction, customer experience, auto bailout, economy, TARP, Economic Issues, Recessions and Depressions, Economic Crisis, Capital Goods Sector, Automobile Manufacturing


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