A few weeks ago I talked about how outsourcing wasn’t an effective way of keeping costs down and soon enough many companies that had outsourced jobs would have to return them to the US.
Sure enough, Dell has done exactly that recently taking many call-center jobs from India and moving them back to the United States.
Glenn Reynolds has some more thoughts in the issue of “insourcing”. It’s clear that Dell is finding that the short-term savings that come from outsourcing various projects doesn’t match the long term liabilities it incurs. While it may be cheaper to pay Indians to run your call center, it loses you customers and revenues in the end.
I’m tempted to say “see, I told you so”… actually I will say see I told you so. Outsourcing has never been a particular effective way of cutting costs for high tech firms, and companies such as Dell are starting to realize it.