The high costs of outsourcing: Vendor errors, customer mistreatment, and well-being in call centers

Abstract

We analyze the impact of outsourcing on the well-being of internal call center employees in the U.S. telecommunications industry. Our findings draw on mixed-methods data. The qualitative findings suggest that internal employees experienced escalating job demands connected to errors by third-party call center vendors and their employees due to additional work and intensified customer frustrations. SEM results show sequential mediation between the time internal employees spent correcting vendor errors, customer mistreatment of employees, emotional exhaustion, job satisfaction, and absenteeism. Employee autonomy over customer-related decisions appeared to help workers manage these job demands and their effects on well-being.