Outsourcing's Hidden Cost: The Dell Example

I recently tried to purchase a new server from Dell server. I wanted a Dell 650. I was browsing the outlet store @ the time. So I opened another browser window. I went to Dell and began ordering. I got a phone call and then went back to ordering. I wasn't paying attention and completed the checkout at the Dell Outlet Store. The servers were nearly identical price. So I ended up with a 400 SC being shipped instead my 850. I did notice when I received the email confirmation. So I quickly called the Dell Outlet but they closed at 4:00 PM PST. So I called the sales line. They stated that they will not be able to help me as the order was placed with the outlet center. So after an hour of trying to fix it, I give up and order an 650. I call the outlet center the next morning (7:00 AM PST) and find out that the item has already shipped. I asked them to pull it off the truck but they state that's impossible - Why? Because this support center has been sent off shore to India and they are unable to stop it. When I pointed out that it certainly hasn't left the Dell facility, they said there is nothing they can do, they have their procedures. They are not even in the same country as the warehouse. I spent another hour and a half trying to correct the problem. Eventually I gave up and thought well maybe I can use the server since I suspect returning it will be an equal nightmare.

This highlights one of outsourcings hidden costs. Every company over time builds up informal information structures and communication structures. Usually this is in response to meeting customer needs. I have experienced this first hand before when I purchased from the outlet store. I was buying a system for my brother at the outlet store and needed more RAM. (BTW this was before the the customer service center was outsourced to India.) I had already placed the order and needed some changes. I called the customer service number, got a rep who was able to make the changes I need by emailing production and making the changes and billing my credit card seperately. Not the normal procedure but it got the job done. Companies every day have informal structures like this that sprout up like a spider web around the company. They serve to meet customer need and route around damaged processes.

Outsourcing kills these informal connections by severing them completely. By not having these informal connections through out the company, the outsourced division can only follow the rote script. Which in my case was followed to the letter. The script was followed politely, and courteously but it did not solve my problem. Instead I spent 2.5 hours dealing with the problem, still not getting it resolved and the few dollars I saved with Dell was completely wasted as I spent much more trying to correct the order. I have a few questions for Dell.

1. Why can't I change or delete my order with Dell online like everything else I buy online?
   
2. Since you have outsourced the entire customer service division for refurbished systems why do they keep Central Time hours? I spoke with over 20 reps at the center and every single one was Indian (Bangalore I think from the accent). Why not keep all business hours in the US? Isn't the business in California worth it?
   

Intuitively I know the answer to the first question. Dell is about shipping units, not customer service. By shipping the unit they book the revenue. It doesn't answer the second question though. It couldn't be that hard to add 4 hours to the time that customer service is available could it? Especially give than you are saving tremendously on a per hour basis. Aren't your customers worth it?