Customer Service and Call Center Outsourcing, what's the Buzz?

The buzz is all customer service and call center outsourcing, also known as BPO (Business Process Outsourcing). According to Gartner, the outsourcing market in Europe grew by over 6%, BPO with 10%. The market for offshore outsourcing (to low wage countries) is growing at a whopping 40% this year! However, the issue of outsourcing is not without controversy. So what is it?

In the '90s, the growth has been the motto for organizations. Eat or be eaten. Through the continuous increase in the value of the shares could be easily financed. As a result, companies have been acquiring assets which are still on the surface, in close relation to the original business objectives, and between them. The collapse of the global economy and the bursting of the Internet has changed everything.

In these times of tight budgets and heightened attention on ROI (Return on Investment) and TCO (Total Cost of Ownership), companies are taking a good look at what they are in business, and what are the best in L 'The emphasis on core business has resulted in the sale of complete branches of companies. Now, companies go even further, taking a look inward, in search of generic processes to outsource. Finance, Human Resources and Customer Service are now the focus of outsourcing, which was more or less the playground for IT support in recent years.

Outsourcing, the use of resources outside of an organization, not a new thing. Barter trading, the oldest form of commerce, was in fact just that. One person traded a skill (or a product made through this ability) to gain access to the capabilities of another person. In the old days, had a perfect way to bring an activity to be made by the person most able. The old becomes new, as they say.

Benefits of Call Center Outsourcing

It makes sense that a company that has core business is to organize and run a call center, it is more likely do a better job at this (although this is not a fact)! It 's like hiring someone to put a strip in your home. You might be able to do a decent job by themselves, but they are very fast at it! Thus, the efficiency is a clear benefit.

Being in the call center industry, call center services providers are more likely to be able to hire experienced and qualified staff. And, as a service provider (usually) more services of a company, there is more support staff to go around. In this way the continuity, because the service is not compromised if an employee decides to leave. Moreover, because the customer service reps are probably working for more than just your company, you can take advantage of lessons learned from other contracts.

Oh, did I mention no money? The # 1 reason for outsourcing is, of course, to reduce costs. Outsourcing companies may have lower rates because of increased efficiency, but also through economies of scale, which actually means that a smaller number of personnel required for maintenance of the contracts combined than when each company would organize. Moreover, they can easily combine multiple junior and senior staff, which is almost impossible if you only have two customer service representatives!

The money issue is becoming even more interesting if we take into account the possibility of relocation. The outsourcing to low wage countries like India is bringing additional financial benefits in the equation (but also some pitfalls, as we shall see later!). The different work moral is often seen as an advantage. For example, in India, workers are very disciplined and organized a service 24/7 is easier than in Western countries.

Outsourcing Pitfalls

Outsourcing projects often unclear on the forecasts in terms of both customer and service provider. When considering outsourcing make sure you have a clear image of what the level of service is expected. Be as specific as possible. Identify elements that are most important to you and thinking about how this can best be managed. Measurable indicators of performance are better.

Remember that outsourcing is a game of confidence and money. If, when negotiating service levels, you feel that you must remove all contingencies in a contract, I recommend against outsourcing. However, I wish to put an opt-out in the contract, if the trust is lost between the outsourcing partners. Believe me, no partner would get stuck in a contract between two partners wary. For the rest, focus on measurable Key Performance Indicators (KPI) and a clear payment scheme to protect your bottom line.

Anxiety for outsourcing is often fed through the loss of operational control. Remember, it is no longer handpick customer service personnel, and you are much more limited in directing the service. In addition, you may need to adapt the standard approach of the service provider. But the trade-off for the loss of operational control is the more managerial control. But this trade-off occurs only if you successfully negotiate service levels, as previously mentioned.

And then relocation ... With the advent of relocation off, a lot of vendors currently operating on the market. But if you're selecting a partner, not based on the seller's reputation alone, but we make sure that you are dealing with people who will manage the service. Pay particular attention to the level of experience of these people.

Cultural differences can be huge, especially when outsourcing to India. Do not make assumptions, but be very specific in your business needs. And India, although the buzz is all about it, is not the only low-wage country in the world! You might want to consider outsourcing to low wage countries that are not so far away, for example Spain or Mexico.

Another element to consider is this: if your business is the addition of only the minimum value or profit for the service provider, you may receive the service levels do not comply. If this is the case, is probably more secure to avoid off-shore.

Conclusion

Looking at both the advantages and pitfalls of outsourcing call center and customer service, it is clear that there are clear opportunities to reduce the level of costs for organizations. However, do not underestimate the risks. If an organization is inexperienced in managing customer service, the risk for failure are very real, as tight management and KPI evaluation is very important. But in the end, it's all a matter of trust. Ask yourself: I trust a partner, your partner, with a piece of my business? ......