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Article

Title: A Cheaper Alternative to Outsourcing

Author: White, Erin Article Type: Product Analysis
Source: Wall Street Journal, v247 n83 pB3(1) Publication Date: Apr 10, 2006
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

Companies are finding that they can solve their call-center needs, save money, and avoid outsourcing by sharing their resources. For example, when Choice Hotels International had a surge of reservation calls, it hired additional call-center workers from 1-800-Flowers.com. Call center operations generally experience peaks and valleys of volume, and employees are often hired seasonally or are contracted from outsourcing organizations. However, there is a downside to this strategy, with more high-quality employees unwilling to tolerate iffy schedules, as well as the high cost of outsourcing for employers. Companies find that sharing call center employees results in improved recruitment and retention since workers enjoy the more varied work and tend to have more steady employment. Under a typical agreement, each firm hires and pays its own workers. When using the other companys employees, a per-minute fee is charged. Companies usually will lend each other staffers for periods of weeks, but there are some times when an employee is required to change assignments mid-shift. The agreement works especially well for Flowers and Choice because their business cycles tend to be complementary. Some workers also like the idea of having a break from selling hotel rooms all day and switching to selling bouquets. On the downside, both companies have had to overcome some obstacles. In general, the Choice agents have been the higher quality staffers compared to the Flowers salespeople because it is less difficult to sell flowers than hotel rooms.

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Call Centers

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