Final answer:
The major disadvantage of outsourcing call centers is increased customer dissatisfaction, often stemming from cultural and communication gaps. Hidden costs and reduced domestic employment also represent significant drawbacks of this practice. These drawbacks necessitate a balance between the cost savings and the overall customer experience.
Step-by-step explanation:
One of the major disadvantages experienced by many firms that have outsourced their call centers is increased customer dissatisfaction. This occurs when the service provided by the outsourced center does not meet the expectations of customers, often due to cultural misunderstandings or language barriers. These issues can lead to frustration from customers who feel they are not being understood or served well.
Additionally, while outsourcing can lead to cost savings from lower wages overseas, it can sometimes result in hidden costs such as managing the outsourcing relationship and quality control issues which may diminish the expected cost benefits.
Improving customer service quality is a critical aspect for companies, and customers may perceive the service they receive from outsourced call centers as less personalized and responsive.
Moreover, as firms streamline command structures and industries consolidate through mergers, the trend of outsourcing has reduced the number of supervisory and managerial positions domestically. This shift reflects not only the loss of lower-level jobs but extends to highly skilled positions as well, further contributing to domestic unemployment. While consumers enjoy cost savings and increased choice, the repercussions include job loss and potential economic instability for the society at large.