Writing task Unit 7 (Dilemma& Decision)

Offshoring Interstate Call Center Capabilities

Executive summary

Interstate is considering outsourcing all or part of its 150-person call center to an

overseas location in order to reduce operating costs. This report analyzes the
issues affecting the decision to offshore call centre operations and makes
recommendations for future action. The locations under consideration are: China,
India, the Philippines, Canada, and a US location outside of New York. Following
considerations of the benefits and risks of each location, it is recommended
(because to customer perceptions) that Interstate does not relocate its call centre
outside the American continent. However, it is not clear whether Canada or a US
location would be preferable. It is proposed that Interstate should plan a move to
two locations: one in Canada and the other in an appropriate low-cost location in
the USA. Having been through the planning process for both locations, Interstate
should move to the most favourable site and retain the option of relocating to the
second site if a an additional site or further move is required at any stage. Interstate
also needs to consider whether call center operations are best served by direct
employees or by outsourced operations.

1. Introduction
1.1 Aim of the report
Interstate is considering outsourcing all or part of its 150-person New York
call centre to an overseas location in order to reduce operating costs. This
report aims to analyse the issues affecting the decision to offshore call
centre operations and to make recommendations for future action.
1.2 Background
The current operating costs of the New York call centre are extremely high.
Moreover, New York rents are set to rise. Although the Interstate call centre
is currently small, it is likely to increase ten times in size within the next
three years. This makes it essential for Interstate to reconsider the location
of the call centre.