Want to bring jobs back to America? Start here

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(MoneyWatch) COMMENTARY In all recent election years -- and most of the time between -- "exporting American jobs" has been a hot-button issue. We all know the standard arguments, some of which are valid and supported by facts, many of which are not. And regardless of position on the topic, most understand (if not accept) the reality of our transition from a manufacturing- to service-based economy.

So if we are becoming (or are already) a service-based economy, why do we continue to export the most important service of them all, and one for which Americans are best qualified? Of all the service jobs that can and should be kept here, customer service is at the top of the list.

This is not the start of a xenophobic diatribe -- there are plenty of those to go around. I support globalism, and as one who has spent plenty of time doing business in developing nations, I respect and appreciate the desire and right of other human beings to better themselves. I manufacture products in Asia, and have written before about the many myths and misconceptions Americans have about "offshoring" and its impact. At the same time, I am a proud American employer (contrary to jingoistic ranting, "patriot" and "importer" are not mutually exclusive), and I absolutely believe that no job should be shipped off if it can be done better, cost-effectively, at home.

And therein lies the rub: Too many American companies -- typically large corporations -- believe that it can't be done cost-effectively here, because they view it through too narrow a lens. Looking only at their beloved "metrics" (FCST, AHT, NCO, SVL, or whatever), the data crunchers can prove beyond doubt that an offshore representative can handle more calls, in less time, for less money. But those who understand the true nature and benefit of great customer service know that the efficiency/productivity model is a house of cards. The bean-counter approach is like buying half-priced laser eye surgery: Looks good now, but in the long run it will probably prove to be a lack of vision (I'm entering a metaphor contest this month).

Customer service is not manufacturing: Unlike circuit boards, toys or blouses, a provider in another country can't offer an identical product of the same quality at a better price. We all know call center horror stories and anecdotes -- entire articles, books and websites have been written about them, and we all have stories and experiences of our own. The fact is, in the vast majority of cases, it is not possible for someone native to another country, culture, and commercial environment to provide exceptional personal service, no matter how well-intentioned or intensively trained he or she may be.

Exported service creates divides -- from idiomatic speech to sociological awareness and sensitivity (in both directions) that are simply too wide to bridge. A wonderful, eager and motivated worker in Bangalore has as much of a chance at giving me the highest possible level of service as I do giving it to someone in Beijing (presuming I spoke Mandarin). I'm really good at customer service, I've spent a ton of time in China, and I like to think I know how to work well with people there. But I could never put myself in the shoes or mind of that customer, and without that ability, extraordinary service isn't possible.

On top of the interpersonal and cultural hurdles, by definition, the needs and science of running an efficient call center preclude anything close to what a truly great customer service organization would consider great customer service. At best, basic business can be transacted and straightforward problems solved, but no customer is ever going to be "wowed." Most people have probably had some acceptable, or even satisfactory, interactions with offshore call centers, but the experience is more likely to frustrate and alienate people than it is to create delighted, adoring, vocal, and loyal fans. And that's where the call center value proposition falls apart.

Applying a mass production mentality to service -- and that is exactly what we're talking about -- and preventing the possibility of like-minded people having empathetic interactions, takes a "per incident" view of the customer relationship. It does not factor in the long-term value of that relationship, which every enlightened business knows is the ultimate reward for great service. To continue my obsession with metaphors this week, it is  rent versus equity: You might save some money and get a roof over your head for the month, meeting your basic needs, but you're building nothing for yourself. The short-term benefits almost never pay off in the long run.

By some estimates, between India and the Philippines (the two largest call outsourcing countries) alone, there are more than three-quarters of a million call center employees servicing (more accurately, "dealing with") American customers. Add other countries, and it is reasonable to assume that number hits seven digits, which roughly equals or exceeds ten percent of our average national unemployment figure. And though not every American is cut out for great customer service either, I think it's safe to say that enough of them are to fill those million-plus jobs, and to the commercial benefit of the businesses that hire them.

[Survey69]

Hello all,

Interesting article especially that most of the available focus on manufacturing rather than the service industries.

I am conducting a survey on reshoring efforts for the purpose of my MBA thesis. The survey is 17 questions long divided on 3 short pages. It should take about 5 - 7 minutes to complete.

Considering your company's participation in the reshoring trend, I would appreciate if you take the time to participate in the survey in the link below. It would really add value to my survey and in return I am willing to share the aggregated results with you at the end of the survey.

https://www.surveymonkey.com/s/RSKKPMG

Thanks for your help
Wael
ca.linkedin.com/pub/wael-sedky/5/36/315

[Mrs. E]

I have often wondered why the internet has allowed jobs to be done in offices overseas; rather than from the homes of the employees stateside. The company I work at has an overseas operation (in an office) and recently started giving some employees here the "privilege" of working from home 2 days a week, and for overtime. We could have a much smaller office space if they consolidated the desks of those people and coordinated the telecommute/onsite days. Why not go for the majority of days telecommuting and weekly onsite time to actually get a 'green' rating? Customer service jobs rarely need to have access to hard-copies of anything, and chat, conference calls on VOIP make it easy to communicate 'in-person' from different places. Lots of companies should look at what they mean when they say they are made up of people, and shrink the buildings to keep them in!

[venusvegasvada]

I disagree with your premise that off shoring is good for this Nation. I also disagree with the concept that the service industry should be our Nations shining future.

"Between 2001 -- when the People's Republic entered the World Trade Organization -- and 2011, America's trade deficit with China has cost the U.S. 2.8 million jobs, the Economic Policy Institute concluded in a recent report. That includes nearly 2 million manufacturing jobs eliminated or displaced over that period, according to the Washington think tank."

GE just announced, to fanfare, that it was ever so graciously creating 1300 new jobs in the US between now and 2015. Jobs paying 13.00 per hour. That works out to adding 36 jobs a month at 13.00 in the US. Meanwhile, they have racked in over 20 billion in profits and gotten back over 4 billion from the IRS. They are the third largest tax avoiding company in the US.

Are you kidding me? That's what it's come to.

In 1990 30% of the US GNP was manufacturing. 10% was financial services.

Somewhere along the line, people in our Govt. decided to throw manufacturing under the bus and push financial services. By the mid 2000's, we were sitting at 30% GNP for Financial services, 10% GNP for Manufacturing.

To do that, the Govt. rolled over for wall street and the bankers and corporations. Repealed the Glass-Steagall Act and passed the Gramm-Leach-Bliley and the Commodity Futures Exchange Act of 2000.

All that was supposed to create more American jobs. It didn't. Pie in the sky. All it did was make the Rich richer and the poor poorer.

Instead, the experiment turned into a total disaster. By 2008, the new financial behemoths almost destroyed the world financial system and left American short on living wage jobs and weak in manufacturing.

Truly fixing this situation should be national security issues of the highest order.

No nation in history has every "made it" on financial services being a large part of their GNP. Not a single one. Everyone of them that tried, failed. Because you can't sustain any kind of real growth by playing shell games with money. There's no substitute for making things and selling them to people overseas. But for some reason, the idiots that run our Govt. figured that it would just "be ok" to give all that power to greedy bankers and shareholders.

Wrong answer.

The damage to our overall society has also damaged our countries financial health and manufacturing might, which is the true source of our military power. Military might, at the end of the day, is the ultimate decision maker of who controls what. People in our Govt. and Wall Street seem to have forgotten that. They think they are the true source of power.

Wrong answer.

The people running the Govt and Wall Street are playing a very dangerous game by selling the nation out by sending so many jobs overseas. It's cost our treasury and workers trillions of dollars.

The financial experiment is a failure. Offshoring manufacturing is a failure. They have both seriously weakened our Nation, all so a handful of Rich people can make extra profit.

We need to stop it. Reverse these experiments before it's too late. Reset the financial laws to what they were before 1999. Bring manufacturing back to the US with strong incentives. Give NO incentives to move them out, penalize them for being overseas.

It's the only way we can become strong again. Placing your faith in China to do what we want them too is a fools dream. China will challenge us for dominance someday soon and not a single Wall Street Banker or American CEO or Rich Shareholder will have any skin in that game or stomach for dealing with the monster they have created. They will stand back, after creating the entire problem, and dump it on the nation and the middle class and the poor to deal with.

Washington needs to get its act together before it's too late.

[hessmj]

Of course this is a big subject -- far bigger than can be discussed in a forum like this -- and there are many points of view and sensitivities, to be sure. Some are based on well-informed opinions and facts, many are based on less-informed (or misinformed) opinions, often driven more by emotion. It is a complicated topic, and as with any intelligently-debated subject, all opinions and arguments should be heard and respected.

Time and space don't allow me to address all you've brought up point-by-point, But I do need to correct one thing, your very first sentence... in no way is the premise of my article that offshoring is good for the country. I don't believe that, and there's nowhere in the article that I say it or even hint at it (the fact that it is an economic reality does not suggest my endorsement). The column has one and only one simple premise, which is that customer service should not be exported.

Thanks, though, for taking the time to post your clearly passionate thoughts.

[SalesTalmud]

Bring jobs back to America One Veteran at a time.

A company named Workspace Communications has created the Workspace Warrior Initiative whereas companies who outsource jobs offshore can bring a small percentage back and employ military veterans and their families. These are the higher paying jobs like tech support, product support and customer retention. The positions are staffed virtually from the veteran's home in order to employ remote and disabled veterans including caretaker family members. With all the Federal and state(s) tax credits available including training, the cost per hour is just slightly above what companies are paying offshore.

Vets2Work is asking all veterans to identify local businesses that outsource offshore and ask them to bring back a small percentage and hire military veterans. We feel that this small contribution will grow after these companies see the benefits of US veterans over offshore employees.