Setting up an outsourcing vendor for a corporate call center is a complex task. Putting all of the company's corporate eggs in an outsourcing basket may give many call center managers some uneasy moments. It's difficult enough to ensure that a company's own employees are managing customer relationships correctly. The outsourcing organization is being asked to handle an extremely valuable corporate asset: the customer relationship.
Market studies and analysis of the views of call center managers regarding outsourcing reveal widespread concern over the benefits of outsourcing. In one recent user study, users reported higher satisfaction levels with in-house call centers than with outsourced call center services. Nevertheless, another report from IDC on the worldwide call center services industry indicates that it will grow to $58.6 billion by 2003 based on three segments of the call center services market: consulting, systems integration, and outsourcing. Outsourcing was reported to be the largest segment, with 74% of the total market, or $42 billion by 2003.
Call center outsourcing will continue to grow at a strong pace; however, the growth comes with a price tag. Users of outsourcing services are concerned, as they should be, with "staff competence," "flexibility," and "the caliber of operations" at their outsourced centers. The outsourcing business has grown rapidly over the past several years, however, because, by and large, outsourcers do provide good service, and companies need the service, the expertise and the technology provided by these organizations.
The outsourcing sector is a very large component of an even larger call center industry, and it is undergoing continual change. Just as in-house call centers need continual monitoring and upgrading, so do outsourced centers. As well, managers who opt for an outsourced call center are beginning to realize how critical customer relationships are and are understandably concerned about losing control over corporate strategies. Turning sensitive service and revenue tasks over to an outside vendor creates stresses that are reflected in tentative satisfaction ratings. It is important for clients of outsourcing operations to manage their relationships just as if the centers were in house.
Outsourcing companies are a major component of the "teleservices" industry and are often the subject of adverse reports in the media, especially if they are public companies. In general, outsourcing centers are larger than in-house centers and are often comprised of networks of interlinked centers. As noted, they are subject to the same human resources problems—high turnover and employee burnout—as any other sector of the teleservices industry.
Growth in the outsourcing business has brought pressure to bear on these operations, requiring them to be very productive and to reflect the corporate cultures of their client organizations. For a variety of reasons, outsourcing services are a fragile element of the call center service market. Outsourcers must cater to a customer base that demands the highest levels of technology and insists that outsourcers provide very sophisticated off-premise technology that can be integrated into their own existing systems. The services provided by outsourcers are a luxury for many client organizations and will be scaled back during bad times to reduce costs and will likely become very price competitive. All of the negative business factors that affect in-house call centers have an even greater impact on outsourced centers: shortage of qualified labor, capital costs of keeping pace with demand and new technology, and the introduction of unproven, innovative technologies, such as Web/call center combinations.
For these reasons, it is difficult to turn a profit in the call center outsourcing business, yet many organizations are attracted to the business opportunity and are willing to "buck the odds." The business opportunity that attracts outsourcers is the growth of new businesses that require some form of call center or customer contact service in their formative stages. Often, when a company is growing the only way to keep up with an expanding customer base is to rely on outside resources. Traditionally, outsourcers have functioned as a bridge—handling high call volumes during peak seasons or during product launches.
Outsourcing is a good technique for testing new concepts, products, or services without incurring capital expenses. A new campaign can be tested on an outbound list without incurring the costs involved in buying communications equipment or hiring additional employees. Outsourcers can offer the latest technologies in the most sophisticated implementations and can readily handle short-term requirements very well.
The relationship between a company and its outsourcer needs to be managed in the same way as the relationship between a company and its customers. Organizations that use outsourced call centers can take some specific steps to ensure they get the most out of their relationship with the outsourcer.
The first step is to clearly define the responsibilities and goals the outsourcer is expected to achieve. An outsourcer is a partner, one who makes, or should make, a concerted effort to understand the goals of the client organization if the relationship is to be a long-term one. Some outsourcers have a tendency to put all their clients in the same basket—assuming that the same services will suffice for all business sectors, a belief that is far from the real-world situation. Different businesses need different types of call center services—one size does not fit all!
Organizations evaluating outsourcing services should pay close attention to the experience and special brand of services offered by potential outsourcers. A major consideration should be whether the outsourcer is experienced in conducting business in the same way as the client company. And if so, are they coming into the relationship with preconceived notions of how the business should be run? The evaluation should include checking references and calling in to centers to see how calls are handled. Staff training of outsourcer personnel is another important element in selecting the right outsourcing service provider. Is there a regular program for refreshing the knowledge of CSRs? What are the turnover rates? Other issues that are important to clarify are the following:
§ What physical centers will be used for campaigns?
§ What is the turnover rate at those centers?
§ How skilled and motivated are the outsourcer's CSRs?
§ What kind of career path is available for agents—do they get promoted to supervisor?
§ How long is the average tenure?
Moving to an outsourcing facility is a business decision that is often difficult to make due to "fear of the unknown." When an organization manages its own in-house call center, the strengths and weaknesses of people working in the center are known and managers have learned how to use these characteristics for best effect. Also, acknowledging the necessity to move to outsourcing, especially for the smaller, growing company, can be dispiriting. The sense that you are losing touch with customers, not to mention having to rely on outsourcing personnel who represent an unknown human resource quantity, can be an unsettling experience, not only for the call center manager but also for other internal department heads charged with the responsibility of contracting with an outsourcer and working with that organization.
The outsourcing/client relationship is an extremely important one and should be well thought out before any agreement is signed. The successful outsourcing organization needs to emphasize the connection it offers between the client company and its customers and prospects. They need to rely on their experience, and that of their CSRs, to develop confidence among their client organizations.
Outsourcers have access to a range of technology tools that enable their client companies to closely monitor their communication with the client company's customers closer to the point of interaction—real-time reporting tools are one example. A client sees the results of calls (inbound or outbound) without having to take those calls itself. Other tools—monitoring and quality assurance systems—can deliver complete voice and data records of each call to the client, if required. Like any other service organization, outsourcers must take responsibility for the quality and nature of their services, and should be held accountable by their clients for any errors of commission or omission.
Call Center Outsourcing provides higher level of assurance that your business will be handled with fully committed staff, well-trained employees to respond customers need and standard speed and service.
ReplyDeleteMaintaining Customer relationship is important because growth of the firms to a largely part depends on how you handle your customers.
ReplyDeletecall center services