American Express in January began "a small test" in Manila to identify whether offshore customer servicing is an option for corporate managed travel, said executive vice president of North America Corporate Travel Pamela Arway. "It won't be for everybody, especially one who likes an onsite," she said. "It remains to be seen" whether the low-wage option is more profitable than automation at home.
Also to manage costs at a time when corporate travel volumes are flat at best, Amex is offering voluntary furloughs of between two weeks and five months. "I don't know how long it will last," Arway said. "I want a good, highly motivated workforce ready to go." Other agencies also have explored offshore options
(BTN, Feb. 10) and, in general, are struggling with headcount at a time characterized by uncertain demand.
According to preliminary responses from the top 10 agencies to BTN's annual Business Travel Survey, to be published May 26, headcounts fell by an average of 5 percent in 2002 versus 2001. That excludes Amex, which did not break out corporate travel figures in its recent Travel Related Services division cuts.