Do-Not-Call Leaves Call Centers in a Lurch

The largest telemarketers are desperately searching for a Plan B, now that Plan A, that is stopping the federal government from establishing a national do-not-call registry, has failed to get results. The question is: "Is there really a plan B?"

As they gather for their annual convention this week, those who sell mortgage services, credit cards, dating services, educational services, and corrugated roofing over the phone say that if they do not change the way they do business immediately, they may follow door-to-door salesmen into commercial extinction.

The teleservices industry says some two million phone-solicitation jobs could be lost within months. But federal regulators are skeptical. For one thing, more than two dozen states have set up do-not-call lists without significant effects on jobs, regulators say. Federal labor statistics indicate about 450,000 people work in telemarketing, but the industry says that figure does not include most callers employed directly by larger companies like banks and insurers.

So what's your take on this situation? I'm sure if many people in your area rely on call center jobs, this is a Freddie Kruger story--in other words it's a real horror story. But for most American citizens, who are tired of having their evenings interrupted by unwelcome phone calls by a telemarketer trying to sell you another home loan refinancing, this is a tale of victory. It's unfortunate that so many jobs may suffer because call centers have abused the public trust, but that is the situation that we now face.

Call centers were the darling of economic development prospects in the 1990's. Yes, there were skeptics who denounced call center jobs as the equivalent of hamburger flipper jobs, but many communities welcomed these centers and the jobs they provided. And many communities and states have plowed big incentive dollars into these deals.

Surely this situation will add to the jobless recovery problem that we are currently struggling with. The question is how can the teleservices industry "re-tool" itself as a survivor over the next couple years. They need to do something other than fight the national do=not-call legislation.

Here is my suggestion. Economic developers need to assess this situation on a statewide and national basis to determine from their standpoint how large of a problem may pose. Let's be proactive on this issue, folks. Don't wait until you get the news that your local call center is folding its tent. As we all know, that is the worst time to find a solution. Alternative scenarios should be considered from the best case to the worst case. We should be devising a plan to help communities respond to this possible looming crisis.

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