Last year, several Professors put out a paper, Does Offshoring Impact Customer Satisfaction? There were some follow-on periodical articles, including this one, How Offshore Outsourcing Affects Customer Satisfaction.
Here was the amazing thing about the study: For those companies which had outsourced (onshore or offshore) front-office functions, they had seen a decline in their market cap of between 1% - 5% due to a decline in Customer Satisfaction.
This is one of those studies that just seems to confirm what people tend to think about outsourcing customer care (and other front-office functions), but unfortunately, has been released well after the damage was done to these companies. Again, we see that the ability to measure certain things (costs), and a corresponding inability to measure other impacts (long-term customer value) leads to really dumb "commonly accepted wisdom" decisions (read: Moneyball).
One of the interesting tidbits from the study was that it seemed that most firms who achieved amazing cost reductions through offshore outsourced support simply let the difference flow through to profit - they did not take the results and reinvest in the product to improve its value to the customer.
BTW, back in the day, I tended to use the CEO's mom test when evaluating potential Customer Care solutions. That is, if my CEO's mom would be befuddled in their attempt to get help through any given support channel, I assumed it needed add'l thought or re-engineering.
I wonder if anyone else has seen this and is thinking about insourcing their support? I suppose they would if there was also a study to illustrate they could get the lost market cap back...