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Homeshoring Continues to be Attractive Choice, Despite Economic Downturn

November 17, 2008

By Susan J. Campbell,
TMCnet Contributing Editor

The global economy is struggling – not really news to anyone. But, the overall impact of this struggle can change the dynamics within specific industries especially that of call and contact centers. While many have assumed that the drastic slowdown within the U.S. will make offshore locations that much more attractive, a recent study found that such thinking may not always be accurate.

A new IDC study found that homeshoring will continue to be an attractive option for service providers and their employees. These results could be surprising, especially as the global economy is slipping into what could end up being a deep and protracted recession.

“Current economic ripples are buffeting American wage earners, including customer care agents, at a time when workers already face significant challenges to both their productivity and their wallets," said Stephen Loynd, program manager, Contact Center Services research, in a Monday statement.

"I am convinced that when it comes to outsourced customer care, by the time we emerge from a possibly severe global recession, homeshoring will have developed into a more formidable sibling to offshoring than many would have expected just a few years ago."

While current economic indicators may be pointing in the opposite direction, IDC’s (News - Alert) new market forecast for U.S. home-based agents shows that the projected compound annual growth rate (CAGR) remains robust at nearly 19 percent.

IDC has also reported that it has found a high degree of interest in this model of service delivery. The contact center industry is replete with players that are moving to adopt the home-based agent offering – especially as technology improves and it continues to offer a cost-effective way to deliver quality customer service.

This IDC study, U.S. Home-Based Agent 2008–2012 Forecast: Homeshoring in an Underwater World reports its findings according to the analysis of key trends and events in CY08 and their predicted impact on the home-based services market for the five-year period from 2008-2012. The study also examines the particularly important trends that are impacting how customer care might best be delivered, depending on requirements.

IDC provides market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets. The company helps IT professionals, business executives and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries.

Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan's articles, please visit her columnist page.

Edited by
Stefania Viscusi