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Founder and Chief Executive Officer of HfS Research, the leading global research analyst organization covering global sourcing strategies. Acclaimed Industry Analyst and Consultant who scribes the leading blog for the services industry "Horses for Sources".  Previously worked  at AMR Research (Gartner Inc),  Deloitte Consulting’s BPO Advisory Services, the  Everest Group and  IDC .  In 2010, Phil was named “IIAR Analyst of the Year” by the Institute of Industry Analyst Relations (IIAR). This is the most coveted global award for industry analysts in technology and services.

One response to “Why Senator Schumer’s proposed call center tax is detrimental and unproductive for the US economy”

  1. David Filwood

    The majority of consumers in the USA/Canada/UK/Euro Zone/Australia/New Zealand want a 24×7 clear connection to a quickly answered call. They want access to a well thought-out IVR for self-service – or be able to easily reach a Live Operator by pressing ‘0’. And once an Agent takes their call – consumers want their issues resolved by someone who acts professionally – is easily understood – who is not a ‘script reader’ – and is empowered to make this a “one call & done” experience.

    This level of caller experience can typically only be provided to North Americans via a Call Center located in the USA or Canada – for Europeans via a Call Center in the UK/Euro Zone – and for Australia/New Zealand via a Call Center located in one of their two countries. And companies are deciding that it makes sense to pay more for workers in their region – who may be better able to serve and communicate with their customers.

    Several factors are driving business to buck the trend of sending their Call Center jobs to low-labor cost locations such as India – and reverse course – and if not repatriate all of their Call Center jobs – at least leverage their investments in CRM technology to OnShore/NearShore the Call Center jobs associated with servicing ‘major accounts’.

    Companies are re-examining the impact of sending their Call Center jobs overseas on their corporate reputation. Corporate Social Responsibility is considered an important factor in business success. Companies are thinking twice about employing workers in countries with poor human rights records – or lax labor standards such as India. The majority of consumers prefer to do business with firms that commit to an OnShore/NearShore Call Center workforce that is treated with a “Fair Trade” level of employment standards.

    High-quality, affordable Call Center labor is available in many smaller OnShore/NearShore markets – where access to high-speed broadband connections isn’t a problem – and real estate prices & wages are lower than in large cities. In today’s labor market – there is a ‘Tsunami’ of Candidates applying for Call Center jobs. In 2009 there was an average of 30 Job Applicants for every vacant Call Center position in the USA. This Applicant-to-Hire Ratio varied from a high of 51:1 in the North East – to a low of 17:1 in the South.

    Legislation incentivizing repatriation of Call Center jobs has bi-partisan support in the US Congress. Sen. Charles Schumer (D NY) has introduced legislation proposing to “rein in the outsourcing of call center jobs to foreign countries” and to “maintain thousands of jobs in New York and the US” and to “provide incentive for jobs to return home” – by taxing all offshore Call Center calls at $0.25 per call. Rep. Frank Wolf (R VA) has introduced the “Strategic Manufacturing & Job Repatriation Act”. Wolf asks: “If you’re an American company with a call center in India, why not put that in the Shenandoah Valley?” The trend to legislate the repatriation of Call Center jobs is growing in the UK/Euro Zone/Australia/New Zealand as well.

    In the past two years a few of the companies that have moved offshore Call Centers OnShore/NearShore cut across all product lines and include Delta Airlines, United Airlines, AT&T, Dell,, Expedia and HP. Opting to ‘come home’ for their Call Center employees is making sense for more companies seeking to enhance their Service Levels & Brand Reputation while delivering a higher degree of overall Customer Satisfaction.

    Top performing Call Centers drive their Revenue & Performance through superior hiring tactics. We help employers gain better insight & more accurate predictions as to which applicants from a pool of Candidates would perform up to, or beyond their established standards. You can find out about a Free Trial of SPAS Call Center Agent Pre-Employment Screening Software at