How Offshore Outsourcing Affects Customer Satisfaction

(The Australian IT, 9 Jul 08 ) National Australia Bank has announced another wave of IT roles to be offshored that could see over 400 jobs sent to India by the end of the year.

From general (and ex-NAB) customer’s perspective, I’m not in favour of major outsourcing or massive usage contractual workforce. This structural workforce (and business process) change that rewards short term numbers gain for longer term decline in a company’s internal knowledge accumulation, customer knowledge, losing direct decision making ability and demonstrates a lack of commitment to the local customer base.

A recent article “How Offshore Outsourcing Affects Customer Satisfaction” published on WSJ reports on the very real cost of offshoring (up to 5% of a company’s market capitalisation). The authors understands the rational behind offshoring and recommends steps to minimise the downsides.


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