Call Center Outsourcing

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March 16, 2009

Call Center Outsourcing Continues to be Cost Effective Option in Tough Economy

By Susan J. Campbell, TMCnet Contributing Editor


As today’s worsening economic conditions have companies looking for as many ways as possible to save on costs, call center outsourcing has become a popular and viable way to continue delivering service while at the same time, lowering operating costs.

Anticipated cost savings has long been the key driver behind call center outsourcing. According to an ICMI study, 65.1 percent of all call centers surveyed cited cost reduction as the most common driver of outsourcing decisions.

While a better cost structure can be appealing, companies taking this leap are discovering other benefits as well. The ICMI study revealed that the top five benefits included not only lowered operating costs, but also extended hours, better handling of peak traffic, improved staffing flexibility and higher productivity.

ICMI study respondents also reported significant satisfaction with the outsourcing services they were receiving. The majority reported that they were either somewhat satisfied at 49.2 percent or very satisfied at 39.7 percent. Only a small 1.6 percent was very dissatisfied with their outsourcer.

Call centers typically drain company resources and therefore, any option that can maintain or improve service deliverables for a fraction of the cost is worth consideration. The organization that does not have its own call center operations and is considering an outsourcer can achieve its customer service goals at significantly lower cost than establishing its own center.

As a result of the promise of equal or better service at lower costs, outsourced call center operations are growing. Consider market analysis from Frost & Sullivan (News - Alert) that suggests the Europe, Middle East and Africa (EMEA) call center outsourcing market will grow at a steady pace fuelled by positive economic movement in Central and Eastern Europe. In fact, market revenues are expected to reach $16 billion in 2012.

Frost & Sullivan Research Analyst Michael DeSalles noted that while the U.K. outsourcing market is very mature and nearly reached saturation, there are significant opportunities in other European nations. The Netherlands and Central and Eastern hold tremendous promise for new outsourcing contracts, especially in financial services, communications and information technology. 

As this remains still a very complex and fragmented market, successful providers understand that they must be able to provide native-tongue, multilingual agent capabilities to be able to attract and keep key clients. Those who are able to offer this consistently are drawing the most volume.

This cost differential in outsourcing call center operations is not enough, however, as the organization must also ensure that the resources available, including infrastructure and talent pools, are such that service levels can be maintained while also operating at pre-set standards.

The organization deciding whether or not to seek out the support of a call center outsourcing vendor must take into consideration its expectations and its goals and how this vendor can meet these expectations and help the organization to achieve its goals. Only then will the call center outsourcer truly deliver value to the organization.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Stefania Viscusi


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