Is the sum of all fears really destroying offshore contact centre Industry?

According to research from Ovum the advantages of offshore contact centres are decreasing, while the fears associated with setting up call centres in low cost offshore locations are increasing.

The reducing costs associated with running contact centres onshore, worries about the quality of interactions between offshore contact centre agents and customers, as well as fears over political and environmental risks are making corporates think again.

Research from Ovum revealed that only 2% of large enterprises in Europe, North America and Australia plan to offshore customer services in the next 12 to 14 months. Only 10% said they will offshore customer services in the next 36 months and 80% said they have no plans to offshore.

We have all had expperiences with contact centres offshore as customers so these figures might come as a surprise. Particularly when you consider that offshore IT service demand just grows and grows.

The appetite for offshore IT services just seems to increase by the day. This is probably because the reasons for offshoring IT are changing. It always was, and still is according to many, merely a cost cutting exercise.

Newcomers to offshoring are a huge potential market. Only last week the head of the FA’s IT said the organisation was looking at offshore application development, for the first time, in order to get more flexibility in development resources. This is in relation to a big project.

So despite fears over onshore and offshore communication, reducing onshore costs as well as environmental and political risks, more companies than ever are considering or already offshoring IT. Offshoring is about much more than lower costs then?

The options are increasing all the time and not just India, with Eastern Europe, South Africa, Brazil, Egypt and China to name a few I have written about recently. Or will nearshore locations such as Spain have their day?

I interviewed someone from Malaysia yesterday about the IT offshoring options there. It is an interesting one, which I will write about soon on this blog.