Offshore Outsourcing & Scammer
Blog about offshore outsourcing and scammer in the outsourcing industry
Analyzing the offers for offshore call centers
by Rudolf Faix Sunday, February 22, 2015 3:28 AM

For this we need to know first why companies like to outsource to offshore call center.

The answer is very simple. They like to maximize their earnings.  The average income in the high wage countries for telemarketer is around $20 per hour (Source: indeed.com from February 2015). Depending on the country are here additional expenses for the staff necessary. The real costs of a staff will be up to 50% higher than the salary of the staff.

A good and usable product is getting sold automatically if you present it in shops. There are other products like insurances, mortgages, etc. which are getting offered from brokers. Most of the insurances are offering combined packages, which are offering a discount. If the customer takes out one package of this group the price for the remaining things in the package will rise.

If a company offers a new combined package, then it has to have better conditions for the customer.  In this case the company needs to sell more of these packages to have the same winnings. No one gets money as a gift and the company needs to earn money too. This cannot be done by lowering the price for the customer without lowering the cost of sales too. The commission for the sales people will decrease for maximizing the profit of the company and their shareholders. Such a procedure results in a downward spiral in price and performance.

The costs for hiring offshore telemarketing centers are around at a quarter of the onshore prices. Mostly are their products simple not sellable or even the winnings not big enough for paying per hour. For this the most companies found here are offering only pay per sale.

This behavior is very short-sighted, because local people are losing their jobs. People, which have lost their job, have less or no money available. These peoples need to reduce their expenses too for having enough to survive until they find a new job. For this the companies are losing potential buyers. This is leading to the next downward spiral, where the products need to get cheaper and cheaper to get new customers. As nobody can offer the same performance for less money, the performance gets reduced too until the product is getting useless.

Such products shall get sold by using offshore call centers. In the most of the cases the companies are too greedy for supplying data (phone numbers and names) for the call center. The call center should even take the risk about the data. As the most serious data provider in the high wage country are selling data only locally, the international traded data are already heavily used and for this reason more or less useless. Nobody can perform with such kind of data.

The result is: SUCH COMPANIES ARE TO GREEDY AND DESTROY WITH THEIR GREEDINESS THEIR OWN BUSINESS!

 

You can use the following translation for the offers found here at LinkedIn or Facebook:

 

  • Pay per Sale
    The provider does not believe that his products can get sold or The provider does not believe that the call center can sell the products
    Why in this case he likes to go offshore?
    The reason is mostly that it is the last try before running into bankruptcy

  • High commission rate
    As higher the offered commission is as harder is it to sell the product.
    As higher the offered commission is as more useless is the product
    As higher the offered commission is as more financial problems the company has

  • No data provided
    The call center shall even take the risk and invest into the data for selling the product.
    The company has not enough funds already to invest into good data

  • Upfront payment, security deposit, etc.
    The company has not enough funds to pay the broker or to survive with out the payment of the "rich" call center owner. It is already too much what they are offering for this service.
Resume: The more of the above points apply as more dangerous it is for call center owners to strike a deal with such a company. The company can even running into bankruptcy when the call center performs very much. Don’t forget:  You cannot reach in the pocket of a naked one!
 
 

 

 

Tags: , , , , , , , , , , ,

Call Center

Filter by APML

Follow me

AboutMe

I'm since more then 35 years in the computer business (programming and technical support) and using the Internet since it has started. Since 2002 I'm programming solutions for Asterisk and since 2004 I'm in the call center industry.

Disclaimer

All data and information provided on this site is for informational purposes only. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis and is only representing my own opinion. By browsing or using content from this site you accept the full legal disclaimer of this website.