[March 13, 2007]

Eliminating the Contact Center Outsourcing Black Hole

By Stefania Viscusi

TMCnet Assistant Editor

For operations of all sizes, there are benefits in outsourcing contact center needs. Whether it is seasonal agents that aid in call spikes or the outsourcing of an entire operations call center needs, the efficiency improvements and cost savings that can come from outsourcing have allowed it to remain a viable solution that meets organizations customer needs.

Delivering best quality customer service is key and as technologies advance over time, the outsourcing model has also now included things like Virtual Contact Centers that utilize IP

to allow agents to work from varied locations. Or have multi-sourced call centers, as well as contracts with multiple vendors each for specific needs. These new ways of utilizing outsourcing to benefit the organizations call center needs also comes with some increased management needs.

While having all of these options available, increases efficiency and offers flexible alternatives, the increased amount of "hands dipping into the pot", makes it more difficult to manage, report and keep an eye on all operations—elements critical in guaranteeing the success of outsourced call centers.

Without proper management and oversight of what is occurring with all the outsourced areas, it becomes difficult justify savings and according to a recent report by Exony, provider of interaction management solutions, these numbers can be improved and North American companies can save over $300 million a year with improved performance and services.

Ian Ashby, CEO, Exony commented in a statement to the press, "Managed correctly, outsourcing provides the agility and skills to achieve this. However our analysis shows that a lack of control is fueling a $300 million-plus black hole that is costing companies in the U.S. and Canada dearly. Already, around 50 percent of companies that outsource are dissatisfied because expectations are not being met and our research demonstrates that these firms are spending too much on their outsource contracts. Improved ability to measure and manage is needed to plug these gaps and deliver on the outsourcing promise."

By improving a companies ability to measure and manage their outsource providers, including better reporting and a real-time view of all operations, this "would save $900 per year for each of these outsourced agents, amounting to an annual total savings of $319 million in North America alone," a news release on the findings noted.

In response, Exony's latest business white paper, "Virtual Contact Centers and Outsourcer Management," highlights the benefits of virtual call centers and looks to help organizations improve their management of them for added cost savings.

Exony also offers within their latest whitepaper, 10 areas of recommendation to help organizations realize 4.5 percent in annual cost savings on their contracts.

Some of those recommendations include:

Recommendation #5- Ensuring contractual compliance- through more detailed view of outsourced performance organizations to choose the optimum billing method for their needs, such as per minute or per transaction.

Recommendation #8- Cost Savings by not relying on outsourcer-produced reports- if organizations produce their own custom reports without dealing with outsourcers it enables faster, more cost-effective service.

Recommendation #1- Better routing and reporting on calls- savings through better integration and reporting on telecom links with outsourced providers.

The white paper can be found HERE.

Related Articles:

Contact Center Outsourcing Moves Away from Cost Containment

Contact Center Outsourcing Must Fit the Business Model

Why Contact Center Outsourcing?

Contact Center Outsourcing Vendors Provide Benefits When Properly Selected

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Stefania Viscusi is an established writer and avid reader. To see more of her articles, please visit Stefania Viscusi’s columnist page.