American Express Co., New York, has outsourced part of its call centers for defined contribution plan clients to India.
Todd Wold, a spokesman for American Express Retirement Services, Minneapolis, said about 20% of the call center business is now being handled in India, and other units of American Express that have call centers for customers have done the same. The people working at the call centers in India are American Express employees and "they are all licensed representatives," Mr. Wold said.
Not surprisingly, the outsourcing does not sit well with union pension funds.
Jim Spellane, a spokesman for the Electrical Workers Union, IBEW, International Headquarters, Washington, said, "We're very concerned about it (outsourcing), and we're looking into it now.”.
Sources also said that Fidelity Investments, Boston, had outsourced part of its defined contribution call center to India. But Vin LoPortio, a Fidelity spokesman, said that was not the case, although the firm has employees in India.