Outsourcing: It is arguably the biggest issue in customer service today. And not just customer service -- the debate about using offshore operations for tasks previously completed in the U.S. even has a role in the presidential race. Everyone, it seems, has an opinion about outsourcing . However, organizations arrive at outsourcing decisions in fairly predictable ways, says Yankee Group's Art Schoeller. When it comes to contact centers , it all depends on how the enterprise views its customer-service operations at the outset. "Some companies deem these functions as very strategic, love to have control over them, and want to have them as a direct line item on their budgets," he explained. "Others say that customer service is still strategic, but they believe they can manage it as an outsourced function." Vanilla or Chocolate Thus, whether an enterprise will choose to send its customer-service operation to a U.S., near-shore, or far-shore facility -- or keep it entirely in-house -- depends a great deal on the kind of decisions the enterprise makes in other areas. "Do you like vanilla, or do you like chocolate?" Schoeller asked. For many companies, whether to outsource is such a question.

In an organization that already farms out various functions, I.T. and customer-service executives who try to resist the momentum toward outsourcing are swimming against the tide, according to Schoeller. If an organization already has a propensity to send non-core operations out, the decision may be a done deal. 'Can Work' vs. 'Will Work' For those enterprises sitting on the fence, certain factors make outsourcing call-center operations more or less attractive, Richard Feinberg of the Purdue Center for Customer Driven Quality told NewsFactor.

The first thing to know, he said, is that "in most -- if not all -- instances, outsourcing can work." However, there is a big difference between "can work" and "will work," in Feinberg's opinion. "All too often, companies leave customer service to people that don't buy into or understand the mission of the company," he said. For example, many callers to a customer-service line automatically assume that if a rep with a non-English-language accent responds, they will not get their problem solved. Disappointing as that attitude may be, Feinberg noted, it is a fact of call-center life. If an enterprise has no strategy for addressing that problem proactively, Feinberg said, perhaps outsourcing -- especially to an offshore operation -- is not the best option for that company. If, however, call-center management puts procedures in place to allay customer concerns at the beginning of a call by scripting some sort of statement -- for example, "I will do whatever it takes to get an answer to your question" -- then outsourcing becomes feasible once again. "Given a choice, would you rather be on hold for 30 minutes or get a solution from a person in India?" Feinberg asked. Most customers enjoy talking with someone interested in helping them, he said. As the Pendulum Swings A decision to outsource all or part of contact-center operations also can lead to considerable organizational upheaval, Schoeller pointed out.

The scenario goes like this: One executive is a big fan of in-house customer service. Under that person's leadership, an enterprise staffs up its contact center and invests in an array of technology. That person leaves the company, however, after four years. The next executive leans toward outsourcing. That person lays off half or more of the contact-center staff and supervisors, and makes a significant investment in establishing an offshore operation. That person leaves the company, however, after four years. The next executive starts the cycle again, leaving a wake of turnover and employee dissatisfaction -- not to mention inefficient technology use. "If you track organizations over time," Schoeller said, "you see that they outsource customer service, it gets in trouble, and then they bring it back in-house to fix it." This cycle, he noted, can be disruptive and expensive.