Archive for July 8th, 2008

Customer Satisfaction: Should Companies Outsource Customer Service?

Tuesday, July 8th, 2008

Recent studies indicate that outsourcing customer service is most likely to have a negative effect on customer satisfaction.  The study analyzed the offshoring and outsourcing activities of 150 North American companies and business units from 1998 to 2006. As a group, those that outsourced customer service saw a drop in their score on the American Consumer Satisfaction Index, or ACSI, a measure created by the National Quality Research Center at the University of Michigan. The study did show that declines were roughly the same whether companies outsource customer service domestically or overseas.

Companies that saw their ACSI score decrease also saw their companies’ share prices
move in the same direction with. Market capitalization dropped roughly 1% to 5%.

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