TELECOM Digest OnLine - Sorted: U.S. Companies Move Call Center Work to the Home

U.S. Companies Move Call Center Work to the Home

Lisa Minter (
09 Feb 2005 09:48:17 -0800

NEW YORK (Reuters) - People who reach Esther DeJesus when they call
Office Depot Inc.'s customer service center have no idea that she's
sitting at home in a room decorated with pictures of Garfield and
Betty Boop.

The Orlando, Florida, resident, who works on the retailer's account
for call center contractor Willow CSN, is one of a new breed of
customer service representative.

Rather than commuting to a crowded office, she puts in 37 to 40 hours
a week at home and sets her own schedule.

"It is really convenient," said DeJesus, who likes the setup because
it allows her to take care of her grandmother. And she shares her
home office with her twin daughters, who work part-time for Willow
while going to college.

After some unsuccessful attempts to move call centers abroad,
U.S. companies are shifting some of that work back to this country --
and into people's homes.

Besides Office Depot, JetBlue Airways Corp., General Electric Co. and
Staples Inc. are among the companies that have been using stay-at-home
customer service representatives as an alternative to traditional call
centers in the United States, India and the Philippines.

Home-based workers are usually happier, which means better service,
these companies say. The arrangement also allows employers to schedule
people in small part-time slots when call volume is higher, rather
than hiring regular call-center workers who get paid whether they are
busy or not.

To work at home, employees need a computer that meets certain
specifications, such as high-speed Internet access. After taking a
training course, they're ready to start answering calls that are
routed to their home phone.

Companies are passing on some of the savings they're
realizing in rent and office equipment. Stay-at-home customer
service representatives generally command $13 to $14 an hour,
while the industry rate for call center workers is $8 to $9.


Office Depot plans to close nine of its 11 call centers by the end of
September and replace them with home-based workers. The Delray Beach,
Florida-based company now has 1,400 remote agents and plan to double
that number in a year.

"We chose to go with virtual agents as a means to keep work done
domestically and also get the best quality and cost," said Julian
Carter, director of operations.

Office Depot said it halved its attrition rate to 30 percent almost
immediately after it started using home-based workers 3 1/2 years
ago. Now attrition has fallen even more, to a low-teen percentage
rate, allowing the company to save training and recruiting expenses.

Industrywide, the annual turnover rate of 25 percent to 30 percent for
work-at-home agents is significantly lower than 35 percent to 70
percent for call center workers, according to Gartner Inc.

The research firm expects that 10 percent of all contact centers will
use home agents as part of their overall customer services by 2006.

There are already more than 100,000 home-based agents in the United
States, according to technology research firm IDC.

Home-based agents are one response to the growing political backlash
against offshoring. Top personal-computer maker Dell Inc., for
example, is retreating from India because customers have complained
about the difficulty of understanding the workers' accents.

"Expectations about the benefits of offshore will mature," Alexa Bona,
a research director at Gartner, said in a report. "More creative
responses to outsourcing, such as work-at-home agents, will start to
gain ground."

West Corp., as well as closely held companies like Willow, Alpine
Access and Working Solutions, has carved out a profitable niche as an
intermediary between home-based workers and the corporations that use

JetBlue already has about 900 agents based at home and is looking to
add more. The discount airline said its customers like to talk to its
workers, who are comfortable as they answer calls in their slippers
and pajamas.

"When employees are happy, revenues are going to go up," said
G.R. Badger, a customer service supervisor at JetBlue.

For people who chose to stay at home and answer calls, the convenience
is the biggest draw.

Daniel Boord, a father with two children, has a full-time job as a
laboratory worker. Each weekend, he also works 15 hours helping
American Automobile Association customers from his home in Phoenix.

"The flexibility is superb," Boord said. "For my second job, I don't
have to leave the house. I just need to walk 50 feet to my office."

NOTE: For more telecom/internet/networking/computer news from the daily
media, check out our feature 'Telecom Digest Extra' each day at . New articles daily.

*** FAIR USE NOTICE. This message contains copyrighted material the
use of which has not been specifically authorized by the copyright
owner. This Internet discussion group is making it available without
profit to group members who have expressed a prior interest in
receiving the included information in their efforts to advance the
understanding of literary, educational, political, and economic
issues, for non-profit research and educational purposes only. I
believe that this constitutes a 'fair use' of the copyrighted material
as provided for in section 107 of the U.S. Copyright Law. If you wish
to use this copyrighted material for purposes of your own that go
beyond 'fair use,' you must obtain permission from the copyright
owner, in this instance Reuters News Service.

For more information go to:

Post Followup Article Use your browser's quoting feature to quote article into reply
Go to Next message: Telecom dailyLead from USTA: "Sullivan Says Ebbers Told Him to Manipulate Numbers"
Go to Previous message: Monty Solomon: "Why Do Cell Phone Conversations Interfere With Driving?"
TELECOM Digest: Home Page