Mail Tribune - Newsday outsources customer service - August 28, 2006

Mail Tribune (Medford, OR — Wayback)

2006-08-28

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http://www.omniture.com --> Sections Home Page Local News AP News Blogs Archives Business Classifieds Event Calendar Classic Forums Forums Life Opinion Obituaries Multimedia Photo Gallery Readers Photo Gallery Sports Tempo Weather Road Cams Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Distinctly Northwest Women in Business Homelife Magazine Joy Magazine Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Customer Service Advertise With Us Place Classified Ad Contact Us FAQ's Home Delivery Site Map Email Story to a Friend August 28, 2006 Newsday outsources customer service By James T. Madore Newsday Newsday plans to outsource its circulation customer-service operation to the Philippines later this year, eliminating about 50 jobs. In an e-mail message to employees, publisher Timothy P. Knight and circulation vice president Paul Barbetta said the newspaper has hired APAC Customer Services Inc. to field inquiries from subscribers and others about delivery issues. They predicted that readers would see an improvement in service as a result. The move is part of a larger effort by Newsday's parent, Tribune Co., to reduce costs in the face of an uncertain advertising market and pressure from key shareholders to boost its stock price. Nine other Tribune papers, including the Chicago Tribune, The Baltimore Sun and the Orlando Sentinel, also are outsourcing their customer service to APAC in the Philippines. The largest paper, the Los Angeles Times, has used APAC since 1998. Tribune Co. didn't require its papers to outsource, but spokesman Jeff Reiter said "they all chose to get on the program because they were looking at better customer service for readers and the cost savings." Tribune expects to save $40 million per year by eliminating 250 customer service jobs and combining computer systems. At Newsday, officials estimated the savings from the outsourcing at more than half the cost of the current in-house operation. Illinois-based APAC fields customer calls for more than 30 newspapers, according to sales vice president Mark Carver. It opened a second facility in the Philippines earlier this summer and has plans for a third by year's end. Still, veteran newspaper analyst John Morton expressed concerns about the potential for offshore operators to alienate subscribers, whom papers are struggling to retain in the face of competition from the Internet. "One of the complaints of outsourcing customer service has been that you often get somebody who is challenged by the English language," he said. "Circulation is one of the most sensitive areas of the newspaper business, and the last thing you want to do is irritate your customer." Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2007 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Trunks, Footlocker Fundraisers UK Homeowner Loans Casinos Canada Cord Blood Banking Discount Hotel Reservations Texas Electric Choice Compare Electric rates in Texas Online Casino Windermere Van Vleet Men's Clothing Debt Help New Hampshire Primary