Outsourcing At Res!

[novaqt]

UA has announced the opening of a new reservations center in Nova Scotia to owned and operated by EDS Corp. which hold up to 200 res agents. Obviously the first thing that comes to mind is they save on health care since Canada has socialized medicine. Anything else come to mind?

 

[jimntx]

Yeah, the salaries are lower and paid in Cdn dollars. $1Cdn = approx. $0.75US.

 

[novaqt]

United has opened a new reservations office in Bombay with plans to open another office outside Bombay. Both offices are to handle North America calls.

As with Port Hawkesbury Nova Scotia office, the outsourced Bombay offices get fined by United if the quality of service is not met as set forth in their contracts. Already United has made thousands of dollars in fines to the Port Hawkesbury office.

The question then arises, do we want to make money off the errors, mistakes and poor quality of service or do we really want good customer service and sell tickets?

 

[SCEflyer]

Yeah, the salaries are lower and paid in Cdn dollars. $1Cdn = approx. $0.75US.

[post="111908"][/post]​

That doesn't necessarily mean that the EDS staffers in Halifax are being paid the same amount of CDN $$ which they might receive in US $$. It could be more or could be less. The conversion of US into CDN is what is important, as is the underlying cost of the US $$.

Also, UA could be using CDN $$ earned in Canada to fund the payments to EDS. Accordingly, the deal could be revenue neutral, in regard to any FX conversion.

Regards,

Tom