Short Message Service (SMS)Looking Foward to 2010?

By Tim Searcy

Maybe it is the people I talk to in this business. Maybe it is the malaise brought on by the poor employment news. Whatever it is, I have to admit people I talk to are having a hard time looking forward to the last year in the first decade of this new millennium. Don’t get me wrong, I hope to be here to ring in this New Year and plenty to come, but people are struggling to find things to be positive about as we close out 2009. A little prognostication is good for the soul, particularly when you demand of yourself some optimism. So, what can we expect in the next year?

Ambiguity

That’s right! What we are going to see the most of is what we cannot predict. That is not just in Washington or the state houses, but in business as well. Let’s face it: we are limping out of the worst recession in a century. Consumer confidence is low, and purchases will ultimately fuel the work that arrives in our contact centers. Without more of the former, we will get too little of the latter.

Customer Acquisition Will Be Popular Again

Counter to what I just wrote, companies have been focusing for two years almost exclusively on generating more business from their current customers. This has been a good strategy, but as natural attrition takes place, every direct marketer is realizing that if they do not increase the customer house file, there will be insufficient add on business to make goals. For this reason, I have been hearing a revival of budget discussions around pure new account acquisition. This would be welcome news indeed.

‘Shoring is Going to Go Crazy

Everyone wants to know what direction contact centers will be heading to get inexpensive labor. The answer is: every direction. Anticipate a spate of re-shoring initiatives by companies desperate to prove to legislators, regulators and their customers that they believe in the U.S. employee. However, margin pressure has not gone away, and a recent ATA/DialAmerica study found that 71 percent of companies using offshore contact centers were “somewhat satisfied” or “very satisfied” with their performance. When companies are satisfied, the work stays where it is. Additionally, these locations use the current satisfaction as a means to recruit more contact centers to their country.

Year of the Employee’s Rights

Recent labor enforcement for wages that are unpaid at the beginning and ending of shift are just the tip of the iceberg. Expect disabled employees, potential union officials and attorneys to be suing in record numbers over employee issues this year.

Cross Border Enforcement of Laws

A Canadian firm just had the largest fine levied for fraud at $18 million. The government is fed up with companies not abiding by our laws, and they are in active pursuit of companies that have flaunted our rules. Expect enforcement in Latin America as well as India/Asia in the next 12 months.

I think there is a lot to look forward to in 2010. Gary Hamel says in his book, The New Management, “Businesses die when their internal rate of change is exceeded by the external rate of change.” We don’t need to fear the ambiguity or the change, but we do need to embrace the need to change. Check back with me at the end of this year, and let’s see how I did.

You might think to yourself … “Not so fast Tim, what about last year’s predictions, how did you do on those?” I made seven predictions at year end of 2008 for 2009, so let’s see how I did:

1. Minimum wage is going to go up – Yep …it did.
2. Unions are going to enter the contact center in a big way – Not really, but rumblings in Denver indicate that some of the cable providers may be the first test of call centers unionizing.
3. Labor legislation will be contemplated and passed – Nope, however, I am making a similar prediction for this year. I forget how slowly the wheels of government grind.
4. Consumers are going to get lots of representation – Yep … regardless of whether it is enforcement actions, fines or stricter interpretations, we got all of those this year.
5. ATA’s petition for exclusive jurisdiction will be answered, and we will win – a big fat “no” again. This is a little like cheering the Cubs and each year having to say, “We’ll get ‘em next year!”
6. Tax incentives and other efforts to keep work onshore will make no impact – This was correct. However, the reason is that very little was actually done about creating any incentives or penalties for these actions regardless of the saber rattling.
7. Everything is going to take longer than people [I] think – Amen to that.

Let’s be honest, the ones I missed above are more about timing than inaccuracy. Like I said in number five above, anything that did not happen is a carryover to 2010 and maybe beyond. Until next time, I am on the line.

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