Capital One pulls out of Indian call centre deal

Capital One has cancelled a deal with India's largest call centre after it emerged that Indian workers had misled the US credit card company's customers with unauthorised offers of credit.

Wipro Spectramind, the Indian technology company, discovered the offers in a routine inspection and disclosed the evidence to Capital One, which decided "not to renew" its telemarketing contract with the New Delhi-based call centre.

The US card issuer declined to comment further yesterday, but its decision comes as a wider political backlash against the outsourcing of such work overseas threatens to undermine the sector's dramatic growth. Politicians in Washington are this week expected to debate legislation that could force call centre workers to disclose their location to customers.

The Capital One incident is the third instance of a big US outsourcer cancelling a deal with an Indian call centre in recent months, and the second involving Wipro Spectramind.

Lehman Brothers, the US bank, and Dell, the computer maker, brought services such as helpdesks back to the US after customer complaints about poor service. But the Capital One incident is the first disclosed instance of a client tearing up a contract because of a campaign by call-centre workers to mislead customers.

Gartner, the IT consultancy, said this month that such client "retractions" would rise in the year ahead. Nevertheless, many US and European companies say they moved operations to India not just because costs are lower but also because standards are higher.

Wipro Spectramind dismissed a "coterie" of about 30 men and women in their early 20s after their behaviour was discovered by inspectors in January.

Just to be clear, this affects only the outbound (telemarketing) call center activity. The inbound contract is not affected.

This is probably on the tip of the iceberg

1 posted on 03/25/2004 3:42:00 PM PST by Doohickey

I like the help centers in the Pilipines. Nice to chat with the LBFM's and discuss recipes.

2 posted on 03/25/2004 4:33:26 PM PST by Khurkris (Ranger On...)

Speaking of which, I'm in need of a Lumpia recipe. I haven't had a decent Lumpia since I got out of the Navy.

3 posted on 03/25/2004 4:41:37 PM PST by Doohickey ("This is a hard and dirty war, but when it's over, nothing will ever be too difficult again.”)

I just got a call from one of these Baghwans. I don't even know which bank he was from. I couldn't understand a word he said. If that was telemarketing, it was a waste of money no matter how cheap it was.

4 posted on 03/25/2004 4:42:29 PM PST by Nick Danger (If you don't disagree with me, how will I know I'm right?)

Whats a fellow Freeper for:

Lumpia recipes

Enjoy!

5 posted on 03/25/2004 4:52:07 PM PST by Khurkris (Ranger On...)

I would like to guess what Capitol One is going to do when their customers financial info starts showing up in the wrong places?

6 posted on 03/26/2004 2:29:08 AM PST by B4Ranch (" A nation that cannot control it's borders is not a nation" President Reagan)

Offshoring is hardly unique to Capital One. In fact, they're probably doing less of it than most of their competitors.

But - you're overall premise is correct. It's not "when" customer information is going to be compromised. It's when.

7 posted on 03/26/2004 3:12:09 PM PST by Doohickey ("This is a hard and dirty war, but when it's over, nothing will ever be too difficult again.”)

I suppose the UN will pick up the personal costs and that way we'll only pay 25% of it? Yeah right.

8 posted on 03/26/2004 3:59:39 PM PST by B4Ranch (" A nation that cannot control it's borders is not a nation" President Reagan)

er...that should've been: It's not "if" customer information is going to be compromised. It's when.

It's just a matter of time.

9 posted on 03/26/2004 4:06:22 PM PST by Doohickey ("This is a hard and dirty war, but when it's over, nothing will ever be too difficult again.”)

Everyone should be aware that your personal data is being moved off shore with no protections. The UK has experienced some unfortunate events because their citizens data was outsourced without their knowledge.

10 posted on 03/26/2004 4:12:46 PM PST by Keen-Minded

It goes way beyond credit cards - you can choose not to have a credit card. Medical transcription, radiology screening, tax preparation, paralegal work - all going offshore.

Lucky those Indians and Chinese are so trustworthy. Aren't they?

12 posted on 03/26/2004 4:30:16 PM PST by Doohickey ("This is a hard and dirty war, but when it's over, nothing will ever be too difficult again.”)

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794