Xsis Inc. is an information technology (IT) and services company. It used to outsource its technical support calls to a company located in a Southeast Asian country. Xsis Inc. started receiving a lot of complaints from customers on language difficulties and delays in reaching senior technicians when speaking to support personnel. The reduction in the volume of calls for its services led Xsis Inc. to terminate its outsourcing contract. Identify the appropriate issue related to outsourcing that led Xsis Inc. to terminate its contract with the company in Southeast Asia.

a. Employee moraleb. Technical and legal issuesc. Negative impact on customer relationships and satisfactiond. Data security and integrity issues

Question

Raymond Duncan

Business

10 November, 00:06

Xsis Inc. is an information technology (IT) and services company. It used to outsource its technical support calls to a company located in a Southeast Asian country. Xsis Inc. started receiving a lot of complaints from customers on language difficulties and delays in reaching senior technicians when speaking to support personnel. The reduction in the volume of calls for its services led Xsis Inc. to terminate its outsourcing contract. Identify the appropriate issue related to outsourcing that led Xsis Inc. to terminate its contract with the company in Southeast Asia.

a. Employee moraleb. Technical and legal issuesc. Negative impact on customer relationships and satisfactiond. Data security and integrity issues

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Answers (1)

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Carolina Glover · Answer 1

Answer:C=Negative impact on customer relationships and satisfaction

Explanation:Xsis Inc being an IT and services company outsourced it's technical support calls to a company in Asia, this is called offshoring i. e outsourcing to a foreign company. the main issue is that this area is one if the core competence of an IT and service company and should not have been outsourced without proper monitoring of the service level agreements. outsourcing the call support means Xsis Inc will have to depend on the management, technical skills if the vendor to manage a very crucial aspect of their operation and from the above illustration, the vendors technical strength was poor leading to inability if customer's to reach senior technicians when the need arises, this led to customer dissatisfaction, which will off course lead to loss of patronage.

Offshoring as in this case had language barrier as a major obstacle, the south east Asia vendors did not put enough infrastructure in place to cater for the customer's varying language need, this led to customer's dissatisfactionand sorely affects the customer relationship with Xsis Inc, because the customer sees the call support vendor as staff of Xsis and may not be aware of the outsourcing deal and even if aware really don't care, the connection is Xsis, the blame goes to Xsis and it is only rational for Xsis to cancel the contract and if possible insource this important function.