Jack Johnston, who has more than 10 years of call center and general management experience with known brands such as Cingular, BellSouth, AT&T, among others, said that there are a host of indicators that need to be surmounted.
He mentioned the high cost of utilities and telecommunication in the CNMI.
“You are talking about utility cost that’s three to four times the cost in your competitors. It is a significant hurdle,” said Johnston as he emphasized the importance of infrastructure reliability.
He said this is not something that the CNMI would like to contend with.
Moreover, Johnston, who was here during the economic restoration summit on March 22, said it is important for companies on island to think that they have options.
He suggested for the CNMI companies to attempt to attract a stand alone outsource operation although this is the most difficult path due to economies of scale, location, and business development demand.
“The key is having the customers to serve. This is one of the harder paths,” he said.
The second option, he said, is to attempt to attract an internal call center like providing technical support to Best Buy, among other big companies on the mainland. But he said this might be a little more difficult.
The third option, he said, is to attract an established outsource vendor with international experience and scale. “They have dedicated business development, dedicated finance to make sure an efficient operation and deal with high quality. I think there is high potential there.”
Johnston said to make this option work, he offered, “It is clear you will have to create a chase package. You have to sell this destination to those decision makers.”
He advised for the CNMI to highlight in the chase package labor pool, industry saturation, and education levels.
In the CNMI, the starting wages are lower compared to the mainland U.S. companies.
He also said that the CNMI has an advantage in proximity to the Asian market that the U.S. companies serve.
The people here, Johnston said, have the language skills.
He said the U.S. companies chose India as the first offshore experiment to have the call centers; however, language barrier became a problem.
Then, he said, the Philippines became a second option where accents were not too strong. “This seems viable.”
However, he said he sees it is more viable in the CNMI.
To make the call center industry viable in the CNMI, he said the issue of the infrastructure reliability has to be addressed.
He added that the CNMI must add to the chase package government support and incentives — job creation incentives, longevity bonuses, and anything else to offset utility and telecom costs.
“Most of the big corporations are looking for incentive package. They are willing to sign for extended periods if they receive something in return,” said Johnston.
He also suggested including tax abatements, capital investment incentives, and training grant s.
So far, Johnston believes that most indicators are positive in so far as establishing call centers in the CNMI.
“There is significant sustainability element,” he said.
“You have a sufficiently available labor pool in order to start an operation and sustain it.”
Aside from a sufficient pool of educated labor, he said the CNMI has a favorable regulatory climate based on his research; however, he reminded that areas where there are strict regulations may turn off investors.
