Dell moves outsourced jobs back to U.S. shores (Taking The "Delhi" Out Of Dell)

Forbes ^ | April 28, 2004 | Elizabeth Corcoran

[Enduring Freedom]

Dell moves outsourced jobs back to U.S. shores

Computer maker loses quality cushion between H-P, other rivals

By Elizabeth Corcoran

Updated: 1:04 p.m. ET April 28, 2004

Dell moved product support for business accounts from India back to the U.S. It seems some customers were not happy with the prior arrangement.

Dell can assemble and ship a new computer for a customer in 24 hours. But it took six months for the company to get Karen Anderson's name right. Anderson, who lives in Calistoga, Calif., endured dozens of phone calls before Dell issued her a promised $200 rebate for a computer she ordered last October. Dell also gave her the wrong Internet service provider. And her printer broke. "I just want to scream when I see Dell's TV commercials," Anderson fumes.

Dell is number one in the PC industry, but recently has been earning more than its share of complaints. Last year it shipped 5.4 million personal computers in the U.S., ahead of rival H-P, which shipped 5.2 million, according to IDC. Dell's high marks for quality notwithstanding, it has unhappy campers.

Last year the central Texas Better Business Bureau logged 3,726 complaints against Dell from consumers throughout the U.S. That's up threefold from 2001, a period in which Dell's sales volume grew two and a half times. H-P earned only 1,362 complaints nationwide for that entire three-year period, according to the Better Business Bureau of the Silicon Valley. Last year the Texas attorney general's office logged 504 complaints against Dell and Dell Financial, more than double the pace of 2002. Complaints about the Round Rock, Texas firm for the first four months of this year are running even with last year's.

[Choose Ye This Day]

We all knew this would start happening. Manufacturing cheap products offshore is one thing; that can be done inexpensively in other countries with little measurable loss of quality.

But customer service and anything that involves human contact--you can't skimp on that. Most companies that outsource their service will lose market share and suffer, and will repent, like Dell.

[nutmeg]

ping!

Please FReepmail me if you want on or off my infrequent ‘miscellaneous’ ping list.

[pnz1]

We had an HP for years but when it finally died we bought an e-Machine Computer. We've been pretty happy with it so far.

[Prov1322]

I've been buying HP computers and equipment for years, and have been very happy with them. Until a month ago.

That's unfortunate! Never bought anything but local generic PC's but alot of HP components, mostly printers and always have had great experiences. Even had an HP CD Burner in one of those generic PC's die exactly 364.25 days after purchase and HP replaced it without question.

[nobdysfool]

My suggestion would be to lose the "name brand" mentality entirely, and find a local company that has been around long enough to have a track record, and have them build a computer for you, a "white box" computer. All standard, easily replaceable parts should anything go bad, a local presence for service, and many times little to no difference in price. I have been using computers I have built myself since 1996, and to be honest, anyone with any sort of rudimentary skills can assemble a computer and get it working with very little trouble. It's not complicated at all. Knowledge is power. If the local college offers a course in Computer upgrade and repair, take it, and you will never again be at the mercy of a technical support person who can't find his butt with both hands.

[DollyCali]

I do love my Dell that I purchased a few years ago via the "refurbished" site. Saved some $$ & it has been a dream. I did have a few minor things that I needed to contact the good old "'Help" , I found the Indian techs to be quite efficient & correct. Guess it is like many things.. there are good/bad in each country & each company.

My friends with JUNO seem to have the worse time with "help"... one friend is paying 29/month & had to make 14 CALLS for one problem which did not get solved. All over the map country wise he said & a good part of them he could NOT understand. I finally came over & solved his problem as I had Juno many years ago & had same problem & self figured it out/corrected it. (re: deleting ads & freezing up Juno/computer)

[The Westerner]

Me, too. I like their machine. But when I needed help at the beginning I found their help in Delhi to be almost condescendingly rude, and I couldn't understand what they were saying half the time.

[pnz1]

I'm not sure what part of the Dell Corporation is in Lebanon and Nashville Tennessee?

[1rudeboy]

The bigger problem of outsourcing will soon arise when those subcontractors begin giving out customers' personal information and there is no US court's jurisdiction to prevent or stop them.

Of course, one could sue the contractor, and the resulting cross-claims will drag everyone into court. Lawyer-up.

[KC_for_Freedom]

This is the answer to outsourcing. Let the market work. Those that want "government solutions" have a problem with that concept.

True, the potential losses to a company for moving service off shore are hugh.. Mostly in the area of "good will" among those employees who do not lose their jobs. Also the services promised in a foreign land may lose their luster amid language problems and culture problems. Dell is not the only company reviewing whether moving off shore is a good idea. (Unfortunately, when jobs are finally moved back, past agreements with workers may be errased by the move. One of the main reasons firms may try this.) Of course this is still the market working, if workers and management cannot both florish, the company is in trouble.

[stanz]

Is it really true? Now maybe I can understand the person on the other end.

[Enduring Freedom]

Lou Dobbers think the government can outsmart the market.

It can't, and never has.

Like the greedy government pinheads who, seeing a steady retail sales stream, decide to increase sales taxes.

They are shocked and surpised to discover that they collect even LESS total taxes at higher rates.

You see, the marketplace is not static. It responds to the backpressure of additional taxation and interference, and so sales go underground, are made out-of-state, or are deferred or abandoned.

The market responds efficiently to changes in the economic landscape.

Delhi accountant pinheads thought they could save money by lowering overhead costs, but discovered that IT economic systems are complex. The marketplace is dynamic. Short-term savings are more than offset by diminishing service quality and its potential impact on future sales and the brand.

[mlmr]

http://www.freerepublic.com/focus/f-chat/875386/posts


My bad, bad Dell experience!

[Spyder]

Interesting - I've had two HP products go south in the past 6 months or so. One printer, one camera. Anyway, I chatted with the Indians, who were courteous though at times very difficult to understand (and I'm good with dialects). The printer was cheerily replaced after our discussion, however despite my spelling out my name and street (including the usual "a as in alpha, b as in beta, etc.) they got both wrong.

With the camera all went smoothly, it was replaced and the address was correct.

Dell has been fairly good when we've called as well, but I can see how some folk would truly have difficulty understanding them.

[Euro-American Scum]

I've been buying HP computers and equipment for years, and have been very happy with them. Until a month ago. I bought an a530n pc. Two weeks and three days later, the hard drive crashed. I've been arguing with Indians several times per day since then. At the moment, I have their promise that they will ship me a new tower, and I should get it in about 10 days. I'm not holding my breath, because they have made and broken several promises in the past couple weeks.

The Dell(hi) customer service people made similar promises to me. They had me reload software three times over a period of two months for what they insisted was a software problem (it wasn't).

They promised me they would follow up with the same service rep to make sure I didn't have to repeat the problem to a new rep (they didn't).

When a U.S. customer service rep -- probably one whose job had been insourced back to the U.S. -- correctly diagnosed the problem to be a fatal fault on drive 0, Dell sent out a crack, Indian H1-B hardware rep to my office to replace my defunct hard drive with a reconditioned one, with uninitialized memory, which crashed and burned within three weeks.

I now have my office PCs custom-built by a local PC manufacturer/retailer. I paid less than what I had the last time I bought PCs through Dell. I have a warranty that exceeds the one I had with Dell. And I have local face-to-face support that will service the problem in person, on the spot.

I wouldn't buy another Dell if Michael Dell himself led his corporate staff in a parade up Pennsylvania Avenue carrying the flag in one hand, an M16 in the other, and a bayonet in his teeth.

[BykrBayb]

Not understanding them is a problem, but I can deal with that. What I can't deal with is their polite refusal to honor the warrantee. They're real good about saying things like "Thank you veddy much," and "Have a nice day," and "What do you want me to do about it?" In the mean time, I'm still out about $1,000, with no indication that I will ever get my money back or a computer that works. They said they're going to send me a new computer, but they've made several promises, and broke every one. This is just the latest one, and I expect it to be broken no later than Tuesday. They got my money a month ago, but I still have no computer.

[Euro-American Scum]

Now, Carly Fiorina views HP employees as 'comodity' and jobs in general NOT as 'God given right'.

I wonder what those Americans buried in Arlington cemetery would think about the rights Carly Fiorina insists Americans don't have.

[Psycho_Bunny]

Outsourcing is exactly why I dropped Dell as a vendor for my company.

I got sick of being shuffled around people who I couldn't understand and couldn't understand me.

[Hillary's Lovely Legs]

I called Dell yesterday for technical support. My call went to the Phillipines.

[BykrBayb]

I keep getting advice to find a local computer repair shop with a good reputation to build me a computer. I think that's what I should do, but I can't begin to imagine how to find such a person, or how to know if they're any good. I do know one shop with a great computer guy, but it's a Radio Shack franchise. I do not want Tandy products in my computer. At least I know to avoid HP, Dell, Radio Shack, Gateway, Compaq, and every other brand I've ever heard of. Maybe I'll just buy an abacus.