Contact Centers and the Off Shore Migration

By Amy McCarty, Sr. Advisor, TPI

 
Is the current economy changing the outsourcing practices of contact center services?  With the economic slowdown there are individuals that believe moving business offshore is unwise.  This group is in favor of keeping jobs in the local economy.  Recently however, I have been listening to a number of quarterly earnings calls from both the clients and the service providers.  These calls, along with a review of published industry papers, indicate just the opposite.  In a time where we are experiencing an economic slowdown, companies are still continuing to move jobs offshore.  And some companies are aggressively pushing jobs offshore.  Some might ask why…  There are a number of reasons clients and service providers tell us they continue moving the right jobs offshore. Below are just a couple:

Savings – the savings are undisputable.  Our research shows that offshore contact centers, efficiently operated, can save upwards of 40% over U.S.-based contact centers.  Savings in the contact center allow investment in core areas of the business.

Quality – the quality, for the price, is comparable to what you would experience in a U.S.-based contact center.  If you are looking to move your customer service, chat, or e-mail support offshore you will experience quality comparable to what you would experience in a U.S. site.  The quality is maintained through intensive new hire and ongoing training, higher frequencies of quality monitoring sessions, and regular feedback from leadership and peer groups alike.  Keep in mind that the quality of off shore work may or may not be appropriate for your premium customer segment.  For that reason strategy and customer segmentation must be thought through so your placement of Services is in line with your customers expectations and continues to support a positive experience.

Innovation – offshore sites employ a unique group that embraces and values the contact center position.  In some locales it is a new and exciting corporate opportunity.  These agents see their role within the contact center as a stepping stone to their career growth.

My experience indicates that tough decisions need to be made in difficult financial times.  Outsourcing, both within the U.S. and to offshore locations, can be the element that keeps your business operational and profitable during this slowdown.  It is critical that your company partners with a service provider that shares your company’s values and beliefs related to operational execution and innovation.   The right partnership will allow you to maneuver through the difficult times and capitalize on the improving economy earlier than if you were operating alone. 

Keep in mind that the strategy and customer segmentation must be taken into account so that the relationship you enjoy with your premium customer is not damaged.

I am interested in hearing how you have approached outsourcing and what initiatives you have put in place to weather the economic storm.  Have you experienced advantages related to savings, quality, and innovation?  Or do you feel the benefits lie in strategies other than outsourcing?  I’m interested to hear your opinion and discuss the options you’ve considered or implemented.

Comments

[Siddharth Sethi]

The benefits on innovation, whether in contact centers or anything else (software, design etc) depend a lot on on how much leeway the outsourcer allows the provider.

Teams in my organization (InfoBeans) have been immensely successful when the client start with a certain amount of trust and allows the team a couple of mistakes while innovating on solutions. Once the initial hiccups are ironed out on innovation processes, those teams have delivered not only tremendous value, but actually new business ideas and real tangible benefits to the clients.

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