Speech Applications & Solutions

Speech Applications & Solutions Featured Article

 

A report released by independent market analyst Datamonitor three years ago predicted that speech-enabled technology would compete with offshore contact center customer service agents.

 

This appears to be exemplified in the announcement by Lloyds TSB, the UK’s fifth largest bank that it is to close its contact center in Mumbai, which typically handles overflow calls when UK agents are busy. The company claims that the widespread use and success of its automated speech-enabled phone self-service system has eliminated the need for the additional agent capacity in Mumbai.

 

Upon its publication, the report stated, “…Speech recognition technology is becoming increasingly prominent as a cost-cutting and value-enhancing solution for customer care and service enablement. As firms look to improve customer interaction in a cost effective manner, the technology will serve as an adjunct to offshore customer service operations…”

 

Datamonitor research indicated that a contact center in an offshore location, such as India, saves Western businesses roughly 25 percent to 35 percent per transaction. However, a call serviced through speech automation costs approximately 15 percent to 25 percent of the cost of a call handled by an agent in India.

 

Speech recognition was once perceived as a futuristic technology that would never leave the realm of science fiction. In the past 50 years, however, key technology and commercial achievement in speech recognition, as well as an increase in cost per unit (CPU) performance and lower hardware costs have also helped to make speech commercially viable for enterprises and service providers alike. Speech recognition today is becoming increasingly prominent as a cost-cutting and value-enhancing solution for customers care and service enablement.

 

“As we roll out the tape over the next several years, cost pressures and globalization will undoubtedly continue to create strong tailwinds for offshoring,” said Daniel Hong Lead Analyst of Voice Business Research at Datamonitor, in a Tuesday statement.

 

“However, speech self-service will also proliferate and in many instances compete with offshoring as companies scramble to assemble the optimal blend of automation and agents for customer care. It is important to note that increased reliance on speech will not supplant the need for offshore contact centers for a lot of companies, rather the technology will serve as an adjunct to offshore operations as these companies look to improve customer interaction in a cost effective manner,” Hong added.

 

Datamonitor research has actually indicated that the offshoring movement will have relevance in the market for some time to come. Peter Ryan, Senior Analyst of Contact Center Outsourcing Research at Datamonitor said in Tuesday’s statement,“one only needs to look at the recent Dell (News - Alert) expansion into the Philippines as a sign that customer care served from foreign locations is a model that works.”

 

“Companies across Western nations are clearly seeing the benefits to housing some elements of customer care offshore. These include lower costs, accessing agents with excellent language skills and commercial sophistication. It is also apparent that many firms that feel offshoring is a one-stop shop are re-thinking their strategy, and are incorporating nearshore / onshore capabilities in addition to self-service.”

 

The move by Lloyds TSB is just one example of how changes in the contact center industry can greatly impact corporate strategy. In this instance, the available technology was changing the way in which the company needed to operate in order to be effective. And, while such technology served this particular company well, it does not negate the need for offshore availability to make operations more viable for other companies.

 

Speech-enabled self service is likely to continue to grow in its application. Consumers continue to demand self-service options, even if the technology can be more irritating than dealing with a live person at times. The fact remains that we continue to want things faster all the time and in order to keep up with this demand, companies must continue to provide us with a way to get the job done ourselves.