MCI, McLeod closures reflect telecom issues

New York-based MCI announced April 28 it would close its Springfield call center June 30, displacing about 400 workers. Another 90 telecommunications employees are out of jobs after McLeod USA closed its Springfield call center May 5.

But there is hope for the industry, as T-Mobile USA approaches a June opening of its 700-employee customer call center in northwest Springfield.

Technology bites back

MCI spokesperson Linda Laughlin said neither increased competition nor the company’s January acquisition by Verizon were reasons for the close. Workers at the Springfield call center, 1720 E. Primrose St., make outbound calls selling residential phone service.

“It has to do with the market trends – a lot of people are beginning to use cell phones and Internet and (instant messaging) chat, and they don’t need a landline in the home anymore,” she said.

Laughlin also said MCI operations took a hit with the introduction of Missouri’s Do Not Call list, which prohibits companies from calling certain consumers if they have no pre-established relationship.

“When that legislation passed, it really did reduce the amount of outbound calling our professional salespeople could do,” Laughlin said.

Laughlin said she is aware of a number of other call center companies that have an eye on MCI’s Springfield employees.

“Several other companies have talked about being able to pluck the employees right away from MCI and putting them in a financial calling center or with some of our competitors in the city,” she said.

MCI has plans to conduct several job fairs and train its call center employees in interviewing and résumé-writing skills, according to Laughlin.

Outsourcing trend

Meanwhile, Cedar Rapids, Iowa-based McLeod USA’s Springfield call center at 3216 S. National Ave., where about 90 were employed, was scheduled to close May 5. The company is outsourcing those jobs to India.

“We’ve been making migrations of some of our customer services to outsourcing third-party companies,” said McLeod spokesman Bryce Nemitz. “We’ve been doing that for a couple of years.”

Nemitz said all of McLeod’s Springfield workers were given outplacement services, the opportunity to apply for other McLeod positions and severance packages based on tenure.

Though MCI’s Laughlin is quick to say that the company’s decision to close its local center has nothing to do with outsourcing, she did say MCI has been outsourcing a large percentage of its jobs for several years.

Nearly one third of MCI’s 35,000 employees work overseas, she said.

The company, previously known as WorldCom, has been closing call centers across the country since it filed for bankruptcy in 2002.

The Springfield center at one time employed as many as 1,200, according to Springfield Business and Development Corp.

Laughlin said outsourcing is a cheaper route but noted that the company has such a wide reach across the world that hiring in other countries only makes sense.

“It’s a huge advantage to be a global company because almost everything in business today does touch some global aspect,” she said.

Citywide impact

As outbound calling loses ground and the popularity of outsourcing rises, hundreds of Springfield workers could be affected, as the city is home to a number of call centers that provide many jobs.

Chase Card Services employs the most, with 1,600, according to the SBDC. Others are ANPAC, with 555; Fairfield Resorts, with 450; Bass Pro Shops, with 300; and AT&T, with 210.

But Ryan Mooney, manager of business development with the Springfield Area Chamber of Commerce, said he isn’t too worried about market trends hurting area employment, though he’s certainly aware of the possibility.

“When we are looking to attract call centers, that’s one of the things we definitely take a look at,” he said. “If there’s a risk that these jobs could very easily be outsourced, we may not aggressively pursue the company.”

And Mooney doesn’t have to worry, as T-Mobile USA is nearing completion of a 700-employee customer call center in northwest Springfield, offsetting any job losses from this year. It is scheduled to open at Airport Plaza in June.

While many call center companies continue to look overseas, T-Mobile is plunging into domestic markets. Mark Davis, director of resource planning at T-Mobile, said the company has committed to a North American strategy to hire at home.

“We’re T-Mobile USA, so our customers are within the U.S., and it just matches up with our customer base,” he said. “Keeping it domestic works for building relationships with customers.”

Having its customer service representatives inside the continent also has helped T-Mobile sidestep language or cultural barriers that outsourcing companies often run into, Davis said.