Outraged over outsourcing? Get over it

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Directory company Yellow's decision to move its 018 business to the Philippines may be frustrating thousands of users but those complaining about poor service from overseas operators need to "get over it," says a call centre expert.

TeleTech, the company contracted by Yellow to run its 018 and 0172 directory services, began shifting the phone number inquiry operation from Palmerston North to a Manila call centre in June, a move that has cost about 140 local call-takers their jobs.

Since the move, 018 callers have vented their frustrations with the service, saying the Filipino operators have provided incorrect numbers, or been unable to answer their queries, because of language difficulties and a lack of understanding of New Zealand's geography and Maori place names.

Yellow chief executive Bruce Cotterill acknowledged 018 callers' frustrations in a media statement last week but said the company was "committed to operating the 018 service from Manila in the foreseeable future".

"The reality is 018 call volumes and revenues are gradually falling so we need to find the most economic way of providing the current service as well as building new services," Cotterill said.

"As a New Zealand-operated service the financial model would have meant substantial prices increases, which is not favourable to New Zealanders."

He said the training given to TeleTech staff in Manila on Maori pronunciation, New Zealand accents and colloquialisms, and familiarity with New Zealand businesses and geography would be expanded.

Cotterill's stance has been backed by Catriona Wallace, the Sydney-based managing director of industry research agency callcentres.net.

Speaking in Auckland last week, where she was presenting the findings of her company's annual survey on the state of New Zealand's call centre business to an industry conference, Wallace said outsourcing of the more mundane kinds of call centre work - including answering directory inquiries - was an increasing trend and New Zealanders "need to get over it".

"Organisations don't make these decisions on a whim," she said. "It is more cost effective for that work to be done offshore and those cost savings should eventually come back to the New Zealand consumer in prices not being increased for the services."

Wallace said about 60 per cent of New Zealand call centre staff found their work boring and mundane, and international research suggested shifting menial phone work from a developed to developing countries provided an economic lift for the developed country because it allowed workers to take up more engaging and lucrative tasks within a business.

"Even though there may be some dislocation locally of some jobs, the net longer-term benefit to New Zealand from offshoring is probably greater than keeping these jobs onshore," she said.

Yellow's bid to slash costs to curb price hikes for its phone-based services comes as the company revealed it has eked out a small revenue increase over the past year despite demand for its core directory advertising business facing growing pressure from free online sources such as Google.

Cotterill reportedly said last week that Yellow's revenue for the year to June 30 increased by 0.7 per cent, from the previous year's $292.9 million. He declined to give further details, saying the annual accounts were not yet finalised.

The company's strategy of offering better alternatives to 018 for users wanting directory information has included enhancing its website and developing a mobile search application for the iPhone.

Previous owner Telecom sold the Yellow Pages Group (which includes the white pages database) to private equity firm CCMP and Canada's Teachers' Private Equity - the private investment arm of Ontario Teachers' Pension Plan - for $2.24 billion in April 2007.

While Telecom no longer has any ownership of Yellow, like the directory business, Telecom has also suffered a consumer backlash headache as a result of outsourcing call centre work to the Philippines.

Calls to Telecom's broadband helpline are now answered in the capital, Manila.