Two weeks ago, AGL Resources Inc., an Atlanta, US-based natural gas distribution company, decided to shift its call centre operations from India to the US. The centre was operated by India’s third largest information technology (IT) services company, Wipro Ltd.
Along with similar instances of Delta Airlines Inc., United Airlines Inc. and Chrysler Group Llc reported earlier in the year, this could raise a flag for Indian business process outsourcing (BPO) firms which earned nearly $15 billion (Rs69,450 crore today) from such back-office work in the year to March.
In April, Delta Airlines decided to pull out its call centre operations in India with Wipro and take it back to the US. In March, auto maker Chrysler decided to move its call centre operations from India to Michigan and Utah in the US. In February, United Airlines decided to shift its call centre operations from India to Chicago and Honolulu.
“Given the current state of the US economy, now is the right time to invest in our country and create new jobs,” noted Hank Linginfelter, executive vice-president, utility operations, at AGL Resources in response to an email from Mint.
AGL said that were no consumer satisfaction issues. “Wipro employees have provided excellent service to our customers, but we believe our company’s best long-term strategy for the future is to provide jobs here.”
AGL’s decision to establish its new centre in Georgia will create approximately 75 news jobs locally. The customer care centre, expected to be operational by 1 June, will be AGL’s second such centre in the US. A third one will be set up in New Jersey in December.
Interestingly, industry body Nasscom’s report, Perspectives 2020, identifies the US Midwest, which includes states such as Michigan, as a viable alternative to Indian companies as it offers a “low-cost, high-quality talent pool”.
This, according to Nasscom, is particularly true for “interaction-intensive” and “culturally sensitive” services, both of which apply to call centre operations.
AGL does acknowledge that by shifting it’s call centre operations to India in 2007 the company has achieved cost savings, which enabled it “to invest in the modernization and improvement of many customer service functions and activities”, according to Linginfelter.
United Airlines, when it shifted its operations from India, had hinted at customer satisfaction issues. “More sophisticated conversations with our guests are much better suited for us to handle instead of a third-party partner,” spokesperson Robin Urbanski was cited as saying by Bloomberg in a 10 February report.
United’s call centre operations in India had employed as many as 165 workers.
Along with similar instances of Delta Airlines Inc., United Airlines Inc. and Chrysler Group Llc reported earlier in the year, this could raise a flag for Indian business process outsourcing (BPO) firms which earned nearly $15 billion (Rs69,450 crore today) from such back-office work in the year to March.
In April, Delta Airlines decided to pull out its call centre operations in India with Wipro and take it back to the US. In March, auto maker Chrysler decided to move its call centre operations from India to Michigan and Utah in the US. In February, United Airlines decided to shift its call centre operations from India to Chicago and Honolulu.
“Given the current state of the US economy, now is the right time to invest in our country and create new jobs,” noted Hank Linginfelter, executive vice-president, utility operations, at AGL Resources in response to an email from Mint.
AGL said that were no consumer satisfaction issues. “Wipro employees have provided excellent service to our customers, but we believe our company’s best long-term strategy for the future is to provide jobs here.”
AGL’s decision to establish its new centre in Georgia will create approximately 75 news jobs locally. The customer care centre, expected to be operational by 1 June, will be AGL’s second such centre in the US. A third one will be set up in New Jersey in December.
Interestingly, industry body Nasscom’s report, Perspectives 2020, identifies the US Midwest, which includes states such as Michigan, as a viable alternative to Indian companies as it offers a “low-cost, high-quality talent pool”.
This, according to Nasscom, is particularly true for “interaction-intensive” and “culturally sensitive” services, both of which apply to call centre operations.
AGL does acknowledge that by shifting it’s call centre operations to India in 2007 the company has achieved cost savings, which enabled it “to invest in the modernization and improvement of many customer service functions and activities”, according to Linginfelter.
United Airlines, when it shifted its operations from India, had hinted at customer satisfaction issues. “More sophisticated conversations with our guests are much better suited for us to handle instead of a third-party partner,” spokesperson Robin Urbanski was cited as saying by Bloomberg in a 10 February report.
United’s call centre operations in India had employed as many as 165 workers.
