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Sep 02
2010
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Homesourcing gains popularityPosted by Karen1 in labor costs, homesourcing, homeshoring |
As Anne Field pointed out in this post from several weeks ago, a growing number of companies are looking for ways to keep payroll costs down, yet avoid some of the headaches that can accompany offshore operations. Along with considering rural areas when deciding where to locate, many are opting employees who work from their own homes - what some call homesourcing or homeshoring.
In a December 2009 report, IDC program manager Stephen Loynd forecast a jump in spending on home-based agents (primarily for call centers) from $3 billion in 2008 to $6.2 billion in 2013. While this pace is lower than he predicted in 2008, when he forecast a rise in spending to $8.9 billion by 2012, it still equates to an annual growth rate of nearly 15 percent.
For the most part, these numbers refer to home-based call center agents who provide sales or customer service support. Several sectors have been faster to deploy this model, including technology, health care, hospitality and insurance, according to this report in Tekrati. Retailers also are part of the trend.
Behind the rise, not surprisingly, is the cost that accompanies adding employees to an office. Moreover, employee turnover in typical call centers tends to be obscenely high - well into double digits by most estimates. Utilizing employees who can work from their homes and have some control over their schedules can reduce turnover.
Other factors are at play as well. A number of companies have endured complaints when service from customer representatives based outside their home countries fell short of expectations. Dell Computer, for instance, now offers its customers the ability to connect with service reps who are based in the US, although it charges a premium, according to this story in the Washington Post.
And, the technology needed to support a fleet of agents working from their homes continues to advance.
Still, home-based agents aren't a panacea. Some employers, and particularly those that work with sensitive information, worry about the security risks posed by the use of far-flung agents working via a network. Supervising a virtual workforce requires a different approach than is needed when employees clock-in at a corporate location.
Overall, however, it appears that homesourcing/shoring is here to stay. Nearly 45 percent of participants in the IDC survey indicated that they prefer to deliver customer service from within the US. That compares with about one-third who said they would be willing to use off-shore locations.




