Two articles from TMCNet.com offer interesting thoughts on the proposed tax law changes.
Patrick Barnard posted an article titled Datamonitor: Proposed Changes to U.S. Tax Laws Could Hurt Call Center Outsourcing Industry. Brendan Read also covered the same release from Datamonitor in this article.
The article summarizes the potential impact that the proposed tax law changes by President Obama for firms operating offshore may impact the call center outsourcing industry.
In the article, Datamonitor analyst Peter Ryan comments, “should vendors find themselves financially pressured into moving more operations back onshore in the U.S., it could easily have a negative impact on daily operations, given the traditionally high attrition rates associated with domestic contact center work.”
We wanted to offer a few thoughts:
1. We know that attrition for outsourcers can be reduced with the right call center hiring process.
2. Assuming that Congress passes Obama's plan, will this possibly accelerate the growth of the home agent model by outsourcers? The home agent model is said to provide cost competitiveness to some offshore models while offering an expanded labor market that provides a better caliber candidate. Plus, the jobs will stay in the USA.
3. Could the combination of the card check legislation and the U.S. tax law changes dramatically impact the number of US based call center jobs? This is certainly possible. If U.S. based outsourcing firms find that they are no longer cost competitive utilizing a global workforce strategy solely because they are based in the U.S. and they risk increased costs due to possible unionization, many of these firms may determine to relocate to a more favorable economic environment.
What do you think?
Topics: Talent Selection Ideas