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Call centres move to the living room

'Homeshoring' is the new 'outsourcing'

By Ed Frauenheim

Published: 22 December 2004 08:55 GMT

The next customer service agent you get on the phone may well be sitting in slippers and a dressing gown.

A report released on Tuesday from research firm IDC says a number of companies are turning to a new method to meet call centre challenges: getting workers to handle calls from their homes.

According to researcher IDC, so-called homeshoring or homesourcing in certain situations can boost productivity while cutting costs,. The practice also can avoid a potential pitfall of sending such work overseas, IDC suggested: foreign agents less familiar with US customers.

"There are currently upwards of 100,000 home-based phone representatives in the United States," IDC said. "Compared with traditional outsourcing and offshor[ing], companies utilising home-based agents can access highly skilled representatives that are closely attuned to the US market at very reasonable cost."

The report may give some comfort to those concerned that the offshore phenomenon is undercutting US workers. Research firm Forrester has predicted that more than three million US service jobs will go offshore by 2015. But the scope and impact of offshoring is not certain.

Not all offshore deals are ideal. After receiving customer complaints, Dell stopped sending US technical support calls for two of its corporate computer lines to a Bangalore, India, call centre in 2003.

IDC said companies are turning to homeshoring in response to call centre challenges such as the need for superior agent quality, frequent turnover and the seasonal nature of the business. Alpine Access, Aspect Communications, IntelliCare, West, WillowCSN and Working Solutions are companies with "home-based sourcing methods and strategies", IDC said.

A number of companies in the technology industry are giving more workers flexibility in the way they do their jobs, including the option of working from home. There are challenges involved in telecommuting arrangements, including data security risks. Also, home workers can feel alienated. But homeshoring can help both agents and companies, IDC said.

"Accessing high-quality agents is not limited to those within commuting distance, and agents can be contacted when needed instead of occupying call centres during periods of very little call activity," IDC said.

Ed Frauenheim writes for CNET News.com.

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