Outsourcing as a bad strategy

Ryan has some comments on Dell's decision to move some customer service functions from India back to the US. While outsourcing to Asia does make sense for some companies, I agree with Ryan's sentiment that some firms are too eager and see it as a quick fix solution.

On a different note, I've noticed that many corporations have jumped on the outsourcing bandwagon, drooling over the short-term benefits to their bottom-line. Often times, their view of the world is that customer service is a cost center. The result of this phenomenon, in laymans terms, is that customer service just plain sucks these days. American Express is about the only exception that comes to mind. I wonder if Dell, in a commoditized industry, realized that they had made a strategic mistake by compromising the quality of their customer service. If that is the rationale behind Dell's move out of India, I applaud them.

Good points. Outsourcing is easier than creative problem solving. I've never had the opportunity to work for a company undergoing a decision about outsourcing, but I wonder if they give proper consideration to the potential negative effects.