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Many U.S. companies that receive significant government support in the form of contracts, subsidies, loans, and tax incentives have shuttered U.S. call centers and sent the work and jobs overseas. Some of these companies have also been found guilty of consumer fraud perpetrated from offshore call centers. The list below is just a sampling of companies that have benefited from government assistance only to turn their backs on U.S. workers and communities by shipping call center work offshore.
Many of the banks that received federal government bail-outs during the financial crisis are among the largest companies sending U.S. call center jobs offshore.
At the beginning of the financial crisis in 2008, Capital One received $3.56 billion from federal bailout programs, which was later repaid with interest. Despite the critical role the federal government played in Capitol One’s return to profitability, the bank has closed U.S. call centers and sent jobs overseas.
Capital One in October 2013 announced the development of a call center and customer service training program with a Philippine partner. The firm is expected to employ 2,200 new associates in a business process outsourcing (BPO) facility in the Philippines. The company’s booming overseas business comes in the wake of an announcement that it would lay off more than 300 employees in Tigard, Oregon.
In July of 2012, the federal Consumer Financial Protection Bureau (CFPB) levied its first-ever fine against Capital One for $210 million. The CFPB found Capitol One guilty of slamming nearly two million customers with unrequested or misrepresented services. Capital One’s offshore contracted call center was the source of the misconduct.
JP MORGAN CHASE
At the beginning of the financial crisis in 2008, JP Morgan Chase received $25 billion through bailout programs, which was later repaid with interest. Despite the critical role the federal government played in JP Morgan Chase’s return to profitability, the bank has closed U.S. call centers and sent jobs overseas.
In September 2013, federal bank regulators fined JPMorgan Chase $80 million and ordered the bank to repay $309 million to customers for slamming nearly 2.1 million customers with unrequested or misrepresented services. A third party vendor was the source of the misconduct, but it is unclear whether the vendor’s call center was located overseas.
JPMorgan Chase operates call centers in the Philippines and India.(Video) [PART 1/4] An Introduction To Call Center Outsourcing | Magellan Solutions
JPMorgan Chase laid-off approximately 850 workers from its Florence, SC call center in the spring 2013. — The U.S. Department of Labor is investigating whether the workers are eligible for Trade Adjustment Assistance (as of 10/30/2013). Trade Adjustment Assistance is a federal program that provides extended unemployment benefits, retraining, and other help to workers who have lost their jobs because their employer moved the work overseas.
The U.S. Department of Labor authorized Trade Adjustment Assistance for 145 former JP Morgan Commercial Loan Servicing workers in Louisville, KY who lost their jobs when the work was offshored to India in July 2013. (TAA certified 4/5/2013)
JPMorgan Chase closed an Albion, NY call center in September 2013, laying off 400 workers. — Senator Charles Schumer (D-NY) wrote JP Morgan a letter of concern, urging the company to find solutions to avoid the lay-offs.
JPMorgan Chase closed its Columbus, OH area call center in September 2013, laying off 440 workers.
In October of 2013, JP Morgan Chase agreed to pay $13 billion to settle a case brought by the U.S. Justice Department for bad mortgages issued just before the financial crisis.
The banking giant received more than $25 billion in bailout funds from the U.S. Treasury, which was later repaid with interest. Despite the critical role the federal government played in Wells Fargo's return to profitability, the bank is tripling the number of its Filipino employees and has asked some U.S. employees to train their own replacements
Wells Fargo laid-off hundreds of employees and moved operations to the Philippines, leaving workers in Florida, California, and Pennsylvania jobless.
BANK OF AMERICA
Bank of America received $45 billion in bailout funds from the U.S. Treasury, which was later repaid with interest. Despite the critical role the federal government played in Bank of America’s return to profitability, the bank has closed U.S. call centers and sent jobs overseas.
Bank of America offshored 450 customer service jobs from Concord, CA in May of 2012. The work was moved to Costa Rica, Mexico, and the Philippines. The workers at the Concord call center received their certification for Trade Adjustment Assistance on September 9, 2013.
In 2013, Ohio lost more than 1,100 jobs when Bank of America closed a large customer service mortgage center in Cleveland and two smaller centers in Independence and Cincinnati.
Bank of America also closed a center in Upper St. Clair, Pennsylvania, laying off 209 workers.
Bank of America closed its Wichita, KS call center in July of 2011 laying off 310 workers. Bank of America received $72,111 in state grants for this location.
Bank of America closed a Fresno, California center, laying off 500 workers in July of 2013. — The Department of Labor is investigating whether their jobs were offshored and the workers are eligible for Trade Adjustment Assistance.(Video) How To Start An Outsourcing Business | ZERO DOLLAR INVESTMENT
In October of 2013, a federal court found Bank of America guilty of fraud for mortgages issued by its Countrywide unit before and during the financial crisis.
CitiGroup received $45 billion in bailout funds from the U.S. Treasury, which was later repaid with interest. Despite the critical role the federal government played in CitiGroup’s return to profitability, the bank has closed U.S. call centers and sent jobs overseas.
The U.S. Department of Labor authorized the payment of Trade Adjustment Assistance as a result of CitiGroup offshoring of the following jobs at these locations: — 82 IT jobs in New York City and Irving, TX that were moved to Budapest and London in March 2012. (TAA certified 4/17/2013) — 20 Financial Analysts and Banking Services jobs in New York City and Tampa, FL that CitiGroup moved to Costa Rica and India in 2012. (TAA certified 4/5/2012)
CitiGroup laid off 120 workers in Danville, IL in July 2013, even as it continues to operate call centers overseas.
Companies that Receive Federal Contracts, State and Local Subsidies
Companies that receive lucrative federal government contracts to provide call center services are among the leading exporters of call center work to overseas locations, eliminating good jobs at home.
Hewlett Packard’s services division, HP Enterprises, has a $220 million federal contract to operate call centers for the U.S. Customs and Immigration Service. The company also has a $16 million General Services Administration call center contract.See AlsoOverseas Adventure Travel - Turkey's Magical Hideaways 2021 YOUR O.A.T. ADVENTURE TRAVEL PLANNING GUIDE - Overseas Adventure TravelLatest Travel Requirements to JapanCheapest Dental Implants in the World | Destinations for Dental WorkThe 19-Step International Travel Checklist: How to Prepare to Go Abroad - She Goes The Distance
In July 2013, Hewlett Packard eliminated 500 call center jobs in Conway, Arkansas, even though it received $43 million in state and local incentives to support that call center. — HP’s call center locations now include Costa Rica and India. — The U.S. Department of Labor authorized Trade Adjustment Assistance for the laid-off HP workers in Conway Arkansas on July 19, 2013.
In addition, laid-off former HP workers at the following locations received Trade Adjustment Assistance: — HP’s Omaha, NE call center offshored customer service jobs in 2012. (certified 9/12/2013) — Andover, MA lost 50 software R&D jobs when HP offshored the work to India in 2012. (certified 8/23/2013)
Sykes Enterprises, a company that handles support and technical calls, holds a $23 million federal contract to operate call centers for the Federal Citizen Information Center of the General Services Administration.
Sykes received millions of dollars in loans and tax breaks from small towns in Oregon, Maine, and Florida to locate call centers. Just a few years later, Sykes relocated operations to Asia.
Sykes received $2 million from Florida in 2000 to help start its call center business.
The U.S. Department of Labor approved Trade Adjustment Assistance in recent years for former Sykes workers in these locations: — Spokane Valley, WA lost 328 customer service jobs in 2012 when Sykes offshored the work to Canada and India. (certified 7/25/2013 and 5/9/2012) — Langhorne, PA lost over 100 customer service jobs when Sykes moved the work to the Philippines. (certified 9/18/2012) — Morganfield, KY lost 93 customer service jobs when Sykes moved the work to Mexico. (certified 8/2/2011)(Video) Offshore Development Center (ODC) | Why should your business need to use it?
Convergys holds a $27 million federal contract to operate call centers for the Corporation for National Community Service.
In March of 2010, Convergys offshored its Albuquerque call center laying off 677 IT support workers. — The U.S. Department of Labor certified these workers to receive Trade Adjustment Assistance. (certified 9/17/2010) — The company received $894,580 in state training subsidies for call center workers over its three years of operation.
Companies that Receive Taxpayer Subsidies
State and local governments use tax incentives and subsidies to encourage job growth. Economic development agencies often target call centers for these incentives because they can hire hundreds of entry-level workers in a short timeframe. In some cases, companies accept these incentives only to close down their call centers a few years later, leaving workers unemployed and communities with even smaller tax bases.
In 2012, T-Mobile closed seven U.S. call centers— putting 3,300 employees out of work—after accepting $61 million in state and local subsidies. T-Mobile opted to shutter U.S. workplaces and move jobs to Honduras and the Philippines. The company denied any of the work was moved overseas. In July 2012, the Communications Workers of America won Trade Adjustment Assistance benefits for these workers after documenting that their work had, in fact, been offshored. — The seven shuttered closed call centers and the number of displaced workers: Frisco, TX (615 workers), Redmond, OR (359 workers), Allentown, PA (600 workers), Lenexa, KS (400 workers), Thorton, CO (440 workers), Brownsvile, TX (473 workers), Ft. Lauderdale, FL (500 workers).
In August 2013, a Prudential Annuities office offshored 40 call center and administrative assistants’ jobs in Shelton, CT. — The workers that lost their jobs received Trade Adjustment Assistance (certified September 17, 2010) — This location received $12.6 million in state and local tax credits and subsidies 
2 Fenit Nirappil, "Capital One Hiring for 120 Positions in Tigard After Announcing Hundreds of Layoffs in 2013," OregonLive.com, Sept. 27, 2013; Amy R. Remo, "U.S. Banking Giant Sets Up BPO in Alabang," Philippine Daily Inquirer, Oct. 3, 2013.
11 Karl Rusnak, “Taxpayer Dollars Funding Foreign Worker Training, Economy in Crisis,” Apr. 20, 2012.
13 "Bank of America: Thanks for the Bailout, We’ll Create Some Jobs... In the Philippines," AllGov News, May 31, 2012; Thomas Olson, "Bank of America to Lay Off 209 in Upper St. Clair," TribTotalMedia, Aug. 6, 2013; Juanita Stevenson, "Valley Works: Bank of America Employees Expect Layoffs," KSFN TV online, Jul. 28, 2013.
16 U.S. Department of Labor, TAA Decision 82287; Bill Anderson, “Call Centers in Costa Rica Employ 16,000 People While Developing a Middle Class,” Costa Rica Star, May 18, 2012; “HP Set Up Call Centers in India”
17 For full details, see CWA, “Why Shipping Call Centers Overseas Hurts Us Back Home,” Apr. 2012. See also Scott Barancik, “Small Towns Lose After Gambling on Sykes Jobs,” St. Petersburg Times, Mar. 27, 2004.
20 Nat Levy, “Protesters Decry T-Mobile’s Decision to Close Call Centers,” Bellevue Reporter, Apr. 6, 2012; Good Jobs First, Money on the Line, Sept. 2011.
21 U.S. Department of Labor, TAA Decision 81520; “U.S. Labor Department Confirms that T-Mobile U.S.A Offshores Work,” CWA News, Jul. 19, 2012.
For example, AT&T outsourced thousands of their call service jobs overseas, primarily to Asia and Latin America, shutting down over 29 call centers in the U.S. The Communication Workers of America (CWA) union reported that in April 2015, the Federal Communications Commission (FCC) levied a $25 million fine against AT&T ...What is one of the main reasons that there are many call centers and outsourced jobs in India versus US )? ›
Those factors are low wages, English speakers, and an educated workforce. In addition, India is located in a time zone halfway around the world from the United States; Indians work while Americans sleep. All three of these factors have led U.S. companies to outsource work to India.Who has the best call center? ›
- Best Overall: Signius Communications.
- Best for Marketing and Sales: GetCallers.
- Best for Low-Volume Calls: MAP Communications.
- Best Live and Automated Combination: Davinci.
- Best Automated Service: RingCentral.
- Best for Multi-Channel Support: Specialty Answering Service (SAS)
- BT employ over 11,000 customer service advisors in the UK. ...
- Direct Save Telecom promise customer support from UK-based staff.
- iTalk Telecom are a small broadband provider based in Brighton.
- Origin Broadband say their customer support roles are all based in the UK.
Florida (3,426 businesses), California (3,179 businesses) and Texas (2,551 businesses) are the States with the most number of Telemarketing & Call Centers businesses in the US.Does Verizon use overseas call centers? ›
Verizon confirms that it has call-center operations in Mexico, India, and the Philippines. "As a global company, we do have call centers around the world, to support our various lines of business," spokesman Richard Young said.What are the 3 most difficult things about working in a call center? ›
- Outdated technology Behind the scenes, contact center agents often play a juggling act between disparate backend systems. ...
- Pressure to perform Everyone faces pressure from above. ...
- Internal policy
Lower Labor Costs
The main reason most organizations choose offshore outsourcing is the potential for cost savings. The lower cost of living in developing countries in Asia, for example, can significantly help boost a company's profits.
Lower wage costs.
The primary reason that companies outsource their customer service to offshore call centers is that many foreign countries pay their workers less than in the U.S. As such, using an offshore call center can be significantly cheaper than launching an in-house customer service team.
Call Center Agent salary in India ranges between ₹ 0.1 Lakhs to ₹ 3.0 Lakhs with an average annual salary of ₹ 1.2 Lakhs.
- Verizon. 3.9 $44.85per hour. 30,697 reviews18 salaries reported.
- Bluegreen Vacations. 3.8 $25.77per hour. ...
- US Department of Veterans Affairs. 3.8 $23.17per hour. ...
- Social Security Administration. 3.6 $23.09per hour. ...
- Citi. 3.9 $22.16per hour. ...
- Show more companies.
- United States.
- United Kingdom.
Start by contacting other call centers and businesses who outsource their work. Find out their specific rates and requirements. Reach out as well to the sales departments of local businesses that sell a large variety of products. Search online for call centers who need assistance.What are the 2 types of call centers required? ›
In-House vs Outsourced
All call centers fall under one of two categories: in-house or outsourced. A company can own and operate a call center themselves, which is called in-house. The purpose may be to provide service to existing customers and/or make calls to acquire new ones.
- 24-7 Intouch.
- VXI Global Solutions Inc.
- VN GLOBAL BPO.
- Comdata Group.
The average call center agent salary in the USA is $31,200 per year or $15 per hour. Entry level positions start at $27,300 per year while most experienced workers make up to $42,896 per year.What is the best call center to work for? ›
These highly-rated companies include Verizon with an employee rating of 3.9 out of 5, Teleperformance rated 4.2 out of 5, Spectrum with a rating of 3.3 out of 5, Alorica with a 3.1 out of 5, and AT&T rated 3.7 out of 5 by employees, and more. Are you ready to apply for a new Call Center Representative role?Which industries use call centers the most? ›
The primary industry of contact centers worldwide was financial services, closely followed by technology, media, and telecommunications. In 2021, the state with the highest employment in telemarketing was Texas, with approximately 22,500 employees.Which companies outsource their customer service? ›
- The Wall Street Journal.
- The Bank of America.
- JPMorgan Chase &Co.
- American Express.
- through contacts who are highly placed in certain companies.
- Web portals that provide B2B business services.
- Trying to reach some of the businesses in the semi organized and unorganized sector through your contacts with a solid business case.
- do you have any experience in a call centre?
- why do you want to work for us as a customer service advisor?
- do you enjoy communicating with people?
- how would you deal with an irate customer on the phone?
- how would you tell a customer something that they will not like?
- Tell me about yourself.
- What do you like to do for fun?
- How would your previous team/manager describe you?
- Where do you see yourself in 5 years?
- What enticed you to apply?
- Why are you leaving your current role?
- What are the key factors that make a call center successful?
- #1. “That's not something I can help you with.” Clients are calling the support line for one reason: to solve a problem they're experiencing. ...
- #2. “Calm down” ...
- #3. “I don't know” ...
- #4. “I'll just put you on hold.” ...
- #5. “That's our policy.” ...
- #6. “Let me try to do that.”
One of the greatest benefits of offshore talent is that teams around the world can operate 24*7 according to their timezone. We all know offshore teams work from different countries and a company is likely to hire multiple teams to have the flexibility to handle different teams whenever they want.What are the 4 types of outsourcing? ›
- Professional outsourcing.
- IT outsourcing.
- Manufacturing outsourcing.
- Project outsourcing.
- Process outsourcing.
- Operational outsourcing.
Lower operational costs, labor costs, easier access to the global workforce, ever-increasing competition, and greater quality of services are some of the major reasons why businesses look for offshore outsourcing.What is offshore in call center? ›
An offshore call center is a service provider from a foreign country that offers your company 24/7 customer service. Usually, they provide customer support services in multiple languages and at an inexpensive rate.What is offshoring in call center? ›
What are offshoring call centers? An offshore call center is a type of outsourced call center that provides call center services outside of the hiring company's country of origin. The contact center agents will be sourced directly through the offshore company in the company's country.What is an offshore call? ›
Offshore call centers are those operated outside the United States in countries like India and the Philippines. Onshore call centers are those operated here in the United States, like San Antonio answering service LTC.
A call center is a great place for personal development. When looking for ways to improve their CVs and gain valuable experience, many people start their professional careers as call center agents.What is the most challenging in call center? ›
- Common call center problems and solutions in 2022/2023. Lack of engagement. ...
- Tools to identify contact center problems.
- Challenge #1: Poor customer satisfaction. ...
- Challenge #2: High agent attrition. ...
- Challenge #3: Lack of budget. ...
- Challenge #4: IT issues. ...
- Challenge #5: Low employee morale. ...
- The LiveVox solution.
Call centers are possibly the world's toughest work environment, and there might be a few agents and managers that might term it as a living hell. Having to deal with frustrated callers, strict work schedules, penny-pinching management and super-high expectation don't make it easier for them.How many hours does a call center agent work? ›
Considering the work of an agent is primarily phone-based, most call centers require agents to work eight- or nine-hour hour shifts, depending on company policy, state law, and location.Is call center a hard job? ›
And because there is a distinct routine to working as a call center agent, it's important for you to focus on each customer interaction to avoid getting bogged down in the monotony. Call center life is hard work, but the hardest things in life are usually the most rewarding.How can I increase my call center per hour? ›
- Step up your call center training for new and struggling agents. ...
- Empower your reps with scripts for common customer questions. ...
- Gather relevant information before hopping on a customer call. ...
- Make sure you're routing calls to the right agents.
Offshore Call Center Agencies –
Call Centers in low cost, developing countries like The Philippines, India, Latin America & Eastern Europe are often great choices for the following applications: Consumer Lead Generation or Sales with very large targets/lists.
Globally recognized as the “call center capital of the world,” the Philippines continuously impresses global organizations. According to potential clients, Filipinos are highly admired for their remarkable talents, personality, and character.How stressful are call centers? ›
Call center work can be demanding, especially for a customer service agent. They have to handle several calls, resolve customer issues, meet targets, and more — while ensuring high customer satisfaction levels. This can create stressful situations, which negatively impact agent productivity.How do I get an Amazon call center contract? ›
There are no contracts to sign or per-user licensing. You can spin up a contact center in Amazon Connect, test it, and scale it up and down as needed.. Direct Interactions, a leader in work-at-home contact centers, relies on Amazon Connect to route calls to their remote workforce.
The average salary for Call Center Agent is ₱18,000 per month in the Manila, Philippines Area.How do I start a call center job? ›
- Determine the goal(s)
- Decide on a budget.
- Identify your call center type.
- Build your team.
- Train your employees.
- Find the right software and tools.
- Invest in culture.
Like call center services, contact centers operate within an organization or may be outsourced to a partner. But unlike call centers, contact center agents interact with customers across multiple channels, such as messaging, phone, apps, text, email, social media and web.What is the difference between call center and customer service? ›
A call centre is a department that services inbound and outbound calls from customers. Traditional call centre agents are customer service representatives who handle customer inquiries, but they may also provide other services such as telemarketing, debt collection, and billing, or other customer-related functions.Do call centers pay well? ›
How much does a Call Center make? As of Nov 6, 2022, the average hourly pay for the Call Center jobs category in the United States is $17.49 an hour.What is a good name for a call center? ›
- Answer Desk.
- Citizen Help Centre.
- Command and Control Centre.
- Direct Response.
- Emergency Support Centre.
- Expert Team.
- Guest Relations.
- Help Desk.
The 97,000-square-foot call center is located within AT&T's corporate campus at 1355 W. University Drive in Mesa.Is AT&T customer service overseas? ›
For 24/7 help, call International Customer Care at +1.314. 925.6925 (free from your AT&T wireless phone). Before you go, be sure to: Verify coverage in the country where you're traveling by visiting att.com/travelguide.What does it mean to outsource customer service? ›
Outsourced customer service means that an enterprise is utilizing a third-party provider and makes use of their agents (or AI-powered chatbots) to handle inbound and outbound calls and non-verbal communication with customers. In most cases, Customer Service/Support Outsourcing teams are part of a call center service.What US companies use outsourcing? ›
|1. Google||Multinational technology company|
|2. Facebook||Social media conglomerate|
|3. Unitedhealth Group||American managed health care company|
|4. Wells Fargo||Financial services firm|
|5. Nike||Footwear manufacturing company|
Where can I find outsourcing companies? There are so many sources such as Google Search, Marketplaces, Referrals through friends and colleagues, Directory listing on platforms like Clutch, Reddit and Smashing Magazine where you can easily find the best outsourcing companies.What does ATT stand for in call center? ›
Definition: Average Talk Time (ATT) is, quite simply, the amount of time you spend talking, chatting or working with a customer.Does AT&T call their customers? ›
AT&T says it will never call you to request your account number, PIN or Social Security Number (or ask you to call them back at a provided number with the same information). If you want to lower your bill, give your provider a call.Does AT&T do door to door? ›
To get started, Door to Door sales representatives are not AT&T employees, they are independent contractors. If your city or town requires a permit for Door to Door sales, please ask to see it. If you feel disturbed by them, please put a "No Soliciting" sign on your front door.How can I get service out of country? ›
- AT&T International Day Pass.
- T-Mobile Magenta Unlimited Plans.
- Verizon TravelPass.
- Buy a local SIM card.
- Use Wi-Fi everywhere you go.
Mobile telephone networks differ from country to country, and your phone may be incompatible with the networks in the country you are visiting. Your phone might work for voice calls, but other functions – such as text messaging or sending and receiving data – might not.What is the US exit code? ›
Dialing Outside North America (Exit Code: 011 + Country Code) To dial outside of the North America Numbering Plan, you have to dial an exit code first (011) and then the country code, and then the number.What are the three 3 form of outsourcing? ›
- Onshoring. Relocating work or services to lower-cost location in the company's own country.
- Offshoring. Relocating work or services to third-party providers overseas.
- Nearshoring. Relocating work or services to people in nearby, often bordering regions and countries.