Working at Home Pays Off for Firms (James Flanigan, LA Times May 9, 2004).

David Neeleman, the founder and chief executive of JetBlue Airways Corp. calls it "homesourcing", and considers it a valid alternative to outsourcing jobs overseas. JetBlue's 700 reservation agents work from their homes using PCs and second phone lines supplied by the company. While their hourly wages ($8.50 to $10) are more than you might pay to offshored workers (estimated at $2 to $3 a day),  Neelman sees the bottom line value in terms of recruitment ("...more mature people who stay with you."), retention, and increased worker job satisfaction leading to productivity increases that he estimates at 25%. Neeleman even credits telework with enhancing his company's business continuity, using as an example the "big snowstorm that crippled the Northeast a couple of years ago. While rivals struggled to get their employees through the blizzard and into their call centers so that they could field worried travelers' questions, JetBlue had no such trouble. Its reservation agents simply rolled out of bed, ready to do their jobs."

AT&T Corp. reported "over $180 million in operating benefit from telework" last year, with a substantial portion of these savings due to reduced real estate costs.

ARO Contact Center Inc. employs 175 home-based customer service representatives for insurance and financial services firms. Michael Amigoni, vice president of operations for ARO, points out the hidden costs of doing work offshore. He estimates that telecommunications lines and other equipment that can bring the cost of an offshore worker to $5 to $6 an hour, shaving off much of the potential savings. Amigoni finds bottom-line value in being able to recruit employees who can provide quality of service he needs.

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