Extreme Insourcing: U.S. Edition

As companies who have previously outsourced call center work to low cost countries find it harder to identify additional cost savings, they're asking their partners to help generate more revenue through add-on sales.  As a result, some companies are looking to hire older, more experienced U.S. workers who can work out of their home.  The thinking is that these more experienced workers will be able to generate more revenue even though they cost more to employ.

An article at Portfolio.com puts it this way:

Companies, having cut as much cost as they can, are looking to us to help grow the top line,” said Judi Hand, chief marketing officer of TeleTech Holdings Inc., an international outsourcing company. “That may be the thing we’re seeing the most of.”

The trend is leading outsourcing firms to grow aggressively again in the United States, after a decade in which call-center jobs migrated offshore by the thousands.

Instead of adding new call centers in low-cost cities and towns, clients are asking outsourcing companies to use “virtual” call centers employingolder, more experienced operators working from home.

High-value customers’ calls are increasingly staying in North America, where costs may be higher than offshore, but at-home operators can generate revenue. Simpler and lower-value tasks, which don’t present sales opportunities, are being routed to offshore operators in larger numbers than ever.

This makes me wonder if any Finance activities would be up for extreme insourcing.  The only activity that quickly comes to mind is receivables collection activity.  With internet access, document imaging and workflow, and a dedicated phone line it isn't too much of a stretch to think these calls could be made out of the home.  I do think most other activities would be better handled out of an office location. 

I think the real barriers are organizational and cultural.  Many Finance activities are so integrated that it makes sense to have some level of critical mass at a single location.  Add in a layer of management and controls, and it doesn't seem likely that many Finance activities are heading for the home office any time soon.