[Chrysalis]

VM are in a trap of a false economy and have whats known as failure demand.

In summary the offshore staff have lower per hour costs etc.

However due to customers needing to ring back after a failure to have the problem resolved adds demand to the system so VM's call centre demand is higher as a result of failure, which in turn actually increases costs.

Meanwhile the people who will have decided on the outsourcing likely have to do what masque said with massaging figures etc. to make their original decision seem right.

A economics expert did a lecture on this a few years back.

However looking at VMs recent history VM probably know this but have chosen this path. As they dont have failure demand just for the india reps its also for things like not fixing congestion meaning people will ring back again and again and VM have decided to chew up the costs of manning phones and dishing out compensation instead of cuting back on reasons for people to call.