Delta Airlines Contact Center : Analyisis Of The Country Options

Index

INTRODUCTION 3

STRENGTHS 4

WEAKNESSES 4

OPPORTUNITIES 5

INTEGRATION OF THE DISCUSSION 6

THREATS 6

SOLUTION 9

CONCLUSIONS 10

RECOMMENDATIONS 11

BIBLIOGRAPHY 12

Introduction

Delta Air Lines, Inc. (Delta) is an air carrier that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company offered customers service to destinations with Delta and Delta Connection carrier service to 321 destinations in 58 countries in January 2008. To Latin America and the Caribbean, Delta offered more than 500 weekly flights to 63 destinations in January 2008. It is a founding member of SkyTeam, a global airline alliance that provides customers with worldwide destinations, flights and services.

In Early September of 2000, Delta Airlines was preparing to decide in which country it would allocate its regional contact center which would require an investment of $3-4 million.

As we know multisite contact centers around the world enhance business flexibility and eliminate the physical and geographical restrictions that previously limited how and where enterprises could use their contact centers.

The purpose of this study is to determine which is the better option for Delta in terms of the outsourcing of a regional contact center for Latin America, taking into account the positive and negative aspects of every option involved by using as reference factors like labor cost, labor law and economic stability. The options being analyzed are Mexico, Argentina and Chile.

Strengths, Weaknesses, Opportunities and Threats

For purpose of the SWOT analysis we will use the factors that are considered to be determinant in an allocation of a contact center in a foreign country. We will make individual SWOT analysis of each country in order to have a better outlook of the pros and cons of each country.

STRENGTHS

Mexico:

Ð'* The possession of an already functional contact center with very capable workers.

Ð'* Strong relationship with Delta Airlines due to a high quantity of flight to the country.

Ð'* Availability of very capable workforce thanks to the numerous quality technical schools and universities.

Ð'* A very clear and distinct local accent

Ð'* Economic Stability

Ð'* Geographical proximity to the US

Argentina:

Ð'* Market oriented economic policy trend.

Ð'* Qualified labor.

Chile:

Ð'* The best communications infrastructure in Latin America.

Ð'* The capacity of handling all calls through hardwires.

Ð'* A richly competitive industry which constantly raises the effectiveness of the sector.

Ð'* Very good economic stability.

Ð'* The competitive economy made costs cheaper than in many Latin American countries especially amongst the more developed ones.

Ð'* Labor laws that are more considerate with the employers.

Ð'* A very qualified labor force especially in the Santiago area.

Ð'* Very low tariffs thanks to the general import tariff established by the government.

Ð'* Government support in the shape CORFO that was willing to negotiate better terms directly with Delta in order for their operations to run smoothly.

WEAKNESSES

Mexico:

Ð'* Poor telecommunications infrastructure.

Ð'* An inefficient monopoly in the telecommunications sector.

Ð'* The incapacity of handling all calls by hard wires.

Ð'* High Salaries in the employee profiles Delta is looking for.

Ð'* A poor labor law, which greatly benefits the worker and translates into many expenses.

Ð'* A 100% tariff on equipment that had to be imported.

Argentina:

Ð'* Geographical Remoteness to the US

Ð'* Overvalued exchange rate that would increase costs.

Ð'* The incapacity of handling all calls through hard wires.

Ð'* Economic Instability.

Ð'* High costs in labor.

Ð'* Populist labor laws that were not very fair on companies

Ð'* High tariffs on imports due to the CET on Mercosur.

Chile:

Ð'* A relative small size of the labor pool outside of the Santiago area.

Ð'* Geographical remoteness to the US.

Ð'* A not so intelligible accent by locals.

OPPORTUNITIES

Mexico:

Ð'* The availability of already functional and effective call centers could make adaptation less costly.

Ð'* The higher investment in infrastructure would make them more solid competitors in this industry.

Argentina:

Ð'* The poor planning on the exchange