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Portal’s Outsourcing Decision

Portal is considering outsourcing its call center services to India to lower costs and focus on its "core competence." This decision has implications for workers, legal issues, and the company's reputation. Communication and negotiation with employees, training programs, and reputation management are crucial for balancing stakeholder concerns.

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Portal’s Outsourcing Decision

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  1. Portal’s Outsourcing Decision

  2. Should Portal offshore its customer service function?

  3. Yes. • Intense competitive pressures requires Portal to outsource its call center services to India. • Lower costs • Extend is a specialist in call center services. Portal should focus on its “core competence”.

  4. If so, how much? How can it complete transition as painlessly as possible? What are the future implications of offshoring?

  5. 100% of the call center facilities should move. • Potential problems and future implications: • Resistence of workers • Fear of further downsizing • Legal issues regarding outsourcing in India (tax laws, etc) • Legal issues regarding labor unions • May affect company’s reputation (if the service quality does not improve)

  6. Communication is a must. The company should communicate the downsizing process to the current employees. • To minimize the concerns of current call center employees. • To minimize the concerns of the employees in other departments of the firm. • Discuss and negotiate with the current workers.

  7. How can Portal balance the concerns of its stakeholders?

  8. Employees: • Negotiotions • Communication • Customers • Information regarding better service • Reputation management • Extend • Training of the workers • Technical training • Language training (emphasis on US accent)

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