Trade: Outsourcing is becoming Insourcing, when appropriate

Many service center jobs are returning to America, because of comparative advantages (labor costs aren't the only consideration):
CEO Alan Howard began to question whether the up-front cost savings of outsourcing held up over the long haul. So Burroughs, which recently split from Unisys Corp., returned its call center to Plymouth, staffing it with the workers who had actually built the machines. "Our cost savings is greater than 10 times the cost saving we would have achieved offshore," Howard said. Customer satisfaction spiked, according to the company's internal tracking, and fewer units are being returned for repairs. And engineers are less often sent to the field to fix problems. "Customers prefer to talk to people who know what they are talking about," Howard said.

From The Detroit News: http://detnews.com/article/20100227/BIZ/2270328/Mich--firm-turns-tables-on-outsourcing#ixzz0h2mBSdCC

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