State Outsourcing Call Center Jobs Overseas

[OhioChick]

Stimulus Money Opened Center In Perry Co. To Aid County's Economy

CDT July 6, 2009

NASHVILLE, Tenn. -- It isn't unheard of for industries to outsource jobs and send them overseas. But if the state recently put unemployed Tennesseans to work for Tennessee in a state-run call center in Perry County, why is the state still outsourcing a huge amount of call center work overseas?

Perry County struggles to be a portrait of the American dream. Patriotism waves strong even as prosperity fades and factories close. The county's unemployment rate is the highest in the state and one of the highest in the nation.

"We need the jobs here in the country, not out of the country," said restaurant owner Betty Bell.

Her restaurant is one of the few places that's surviving in a county where fewer people are finding work.

"It's noticeable from the kids at school to the grocery store to everywhere in town," said Bell.

In an effort to help jump-start the county's economy, the state opened the call center using stimulus money.

The 14 part-time operators will help Tennesseans with unemployment claims, but the state needs operators for other spots, too -- spots that aren't being filed with Tennesseans. These jobs are being filled by people who live outside of the United States.

The state has a lot of call centers, but at least one is on the other side of world in India. And that's where the additional jobs are going.

The state is looking at extending a contract to keep the call center and the jobs that go with it in India.

Since 2006, the Tennessee Department of Human Services has had a contract with JP Morgan to manage social service programs like benefit cards for food stamps. JP Morgan in turn uses a facility in India to handle calls.

"We did inquire what it would cost if they didn't do the outsourcing," said Commissioner Gina Lodge of keeping the jobs in the state, "and it would cost the state a half a million dollars a year to do that."

But if it's so inefficient, is the Perry County call center just for show?

"The ones we open in Perry County or our department has opened in several counties in Tennessee are a much smaller volume," said Lodge. "We're talking about 1.6 million calls a month. That's not something you just go up and set up quickly."

But that's exactly what state Sen. Jack Johnson feels the state needs to explore. He said he's concerned about this practice.

"At the end of the day, you've got to weigh saving taxpayer dollars, which certainly we want to do, but also think of the economic benefit of spending those tax dollars in the state versus having that money ultimately go to India or some southeastern Asian country," said Johnson.

Restaurant regulars said the cost can't always be put in numbers.

DHS also has a contract with another company called Intivia for medical transcription. The contract was awarded last year and runs through 2013. It, too, provides services that are executed in India.

http://www.wsmv.com/money/19968514/detail.html

How fucking nice...

[Hello_Kitty]

1. But as we both know so well, there are people on DU who are just fine with this.

And will accuse you of racism for even criticizing it.

[ChromeFoundry]

5. Ding Ding Ding!

yep, I just got called a racist for putting my loyalties on the US as opposed to other countries. I despise greedy corporations, but even more so... government entities shafting the US Worker.

[avaistheone1]

2. Because the U.S. doesn't need any stinking jobs

:sarcasm:

[OhioChick]

3. Oh really?

Tell that to the few in this thread:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3957605

[Joanne98]

4. Good ole JP Morgan Chase! Always fucking the country every chance it gets!