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> what are the odds that an overseas call center would cost more than anticipated (often the case), lower the quality of service and thus the company's reputati
by sinatra 11y ago
> what are the odds that an overseas call center would cost more than anticipated (often the case), lower the quality of service and thus the company's reputation, or actually be enough to stop the downwards spiral rather than just signaling that you're in a low value-add commodity business?
I would imagine that a company as large as LS would have used some analysis and external/internal data to estimate the overall costs of such a move (which would include the cost of lower quality of service etc). And they must have still found the move cost-effective.
It's slightly insulting to LS employees to think that they would know less about the cost-effectiveness of this move than us. Moreover, this move seems drastic. When you're making such drastic moves, you're likely doing so to be able to survive. In such cases, lower quality of customer service and poor signals etc take a back seat.
- acdha 11y agoThe argument isn't that LS management knows less but rather that they're trying to balance multiple demands. An investor's interests end when they cash out, so it's very common for CEOs to face pressure to make decisions which are likely to be profitable in the short-term, but unless they're planning to leave at the same time rhey have to consider the risks to long-term sustainability. Things like customer support and R&D are classic targets for that because they tend to involve many jobs which don't directly generate revenue, and the negative effects often aren't visible for years but the savings show up in the next quarterly report.