Outsource customer service at your own risk

Before you outsource your customer service operations, consider research from the National Quality Research Center at the University of Michigan that suggests such a move -- be it domestically or internationally -- can result in a 1% to 5% drop in your company's market capitalization. Researchers suggest outsourcing other back-office operations, such as IT, if you want to cut costs rather than customer satisfaction.

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MIT Sloan Management Review online/Improvisations blog

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