contact centers outsourcing

1© Contact Centre Experts 2005

Naeem MirzaNaeem MirzaOutsourcing - Contact CentresOutsourcing - Contact Centres

Global Contact Centres

© Contact Centre Experts Inc.

[email protected]+965.6636.3007

mailto:[email protected]

22© Contact Centre Experts Inc.

Experienced & Certified Contact Centre Professional

Naeem Mirza B.Eng MBA

Pronexus

certified


Few Successful Contact Centre Implementations

Hwy 407ETR

Bell Mobility

Rogers AT&T

FedEx

MAERSK

Blue Cross Blue Shield

GE Power

IKON

Banco Popular (Bank in

Brazil)

Florida Power and Light

Broward County

Correctional Facilities

University of Miami &

many more...


Competitive Advantages

Price Quality Customer Service Real time Customer Service Individualization


Meeting Management’s objectives

Influence the bottom line and retain customer loyalty by providing quality, timely reliable, and intelligent customer service

Cut contact centre costs by empowering agents with tools to keep them efficient and motivated; retain and grow valuable staff through training

Increase revenues by proactive management, having a real-time and historical insight into what’s happening in your contact centre.

Leverage existing infrastructure (telephony, applications) to protect legacy investments and help to plan for future growth and upgrades.


"gap analysis" "as is" environment - "to be" vision


KPI’s Gap Analysis

Marketing

Sales andDistribution

Process Quality

Product QualityR & D

ProjectManagement

IT Adminstration(Accounts)

Legend

- Customer Impact *

- Stakeholders Impact

- Employees Impact

*

*

*

*

On a Scale of 1 – 10 (Worst – Best)

Process Quality 4 - 2Administration 4 - 4Marketing 7 - 7Product Quality 5 - 5Sales and Distribution 7 - 6R & D 6 - 4Project Management 3 - 5IT 7 - 7

Where you are now

Where you want to be as aWorld Class Organization

In Past 4 Months


Why outsourcing?

Reduces capital investment in technology or human resources

No staff recruitment and training concerns

No concerns on maintaining latest technology: reduces costs

No estimate of call traffic: sizing of service

No experience required in contact handling

Up-selling and Cross Selling – outsourcing

Contact Centres live and die by Statistics

Your agent is the voice of the customer

Make it fun!

Studies have shown a very high correlation between agent satisfaction and customer satisfaction


Business Models Own and operate an International Contact Centre

Only GE (didn’t start with this model) and Convergys on this model in Asia Pac.

Joint Venture (JV) – Partner with a local firm for expertise and access to resources (Teletech globally seems to favour this model.)

Outsource (least risk) Build Operate and Transfer (BOT) models available Must ensure the BPO systems are transportable Systems and processes must be very documented and culturally

appropriate Need SLA’s and not ones that accept the lowest common

denominator How do you resolve issues when metrics or timeframes aren’t met


Local Trends – Middle East Market Access to latest technology

Exposure to international trends in customer management

Companies geared more towards excellence in customer services

High levels of pre and post sales services

Sophisticated Market and growing market place

Government support for new businesses

UAE is the regional HO for many MNCs

Business oriented lifestyle

High availability of telecom services

Internet access for real-time connectivity, increasing competition has led to an evolution of customer service


Local Trends – Middle East Market

Mature but still growing industry

Evolution from call centre to contact centre

From information centre to transactional experience

24x7 availability

Telephone calls preferred over visits to save time and money

Growth in functionality

Growth in credit card usage and transactional over telephone

Convenient and easy to access

Multi-lingual support

Internet penetration


Facts….!

Your workforce accounts for 60 – 70 percent of your contact centre’s costs.

Research indicates that a single bad experience can reduce customer loyalty by 10 to 30 percent

…..It’s 6X more expensive to gain a new customer than keep the existing ones.


Different kinds of outsourcing

Helpdesk Telesales Telemarketing Technical Support Healthcare Product inquiries Order fulfillment Insurance claims


Location Decisions

6.8

7

7.2

7.4

7.6

7.8

8

Labor Phones R/ELocation

Language Bus. Prac.

Sca l

e o f

1 to

10

Stable, Ethics, Freedom of Press, Business regulations, legal etc.

Must be reliable, efficient, cost effective, have local Telco. capacity

Access to labour pools Educated, articulate, multi skilled

Broad spread multi lingual

Affordable location that labour and management can reach (as required)

Slides 14 – 24 ref: C4; Ross Richardson


Where are the Call Center Agents?

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,000

2002 2003*

Total Agents

USA Canada India Philippines South Africa

0

50,000

100,000

150,000

Growth

Growth

USA Canada India Philippines South Africa


0 10 20 30 40 50 60 70 80 90

USA

South Africa

Philippines

India

Canada

Staff Turnover (Average %)

% who go to another call center


Estimated Loaded Costs (All) / Hour $US

Savings over Lesser US Cost

Savings over Max US Cost

20%40%60%80%

33%33%99% 66%

Figures provided by Local Operators, Economic Development Organizations, Chamber of Commerce. West Indies, Central America and South America provided by Precision Response Corporation.

Central and South America

Not factored in is Head Office travel and management time as well as end customer visits for Outsourcing Applications

$0 $5 $10 $15 $20 $25

USA

Canada

West Indies

South Africa

Philippines

India


World Competitiveness Scorecard 2003 (IMD)

0

20

40

60

80

100

World Competitiveness

USACanadaSouth AfricaIndiaPhilippines 0

20

40

60

80

100

Business Efficiency

0

20

40

60

80

100

Infrastructure

0

20

40

60

80

100

Government Effeciency


Fixed Costs versus Variable(What is appropriate scale?)

Fixed CostsVariable Costs

Canada

Scale = 35 AgentsMax = 1,000 per location

India

Scale = 500-700 AgentsMax = 5,000 per locationAmbertech Group

Philippines

Scale = 350+ AgentsMax = 3,000 per location

South Africa

Scale = 300+ AgentsMax = 2,000 Per location


Where to go? India – technology and process experts

Language and culture issues need to be managed Need to understand culture, education

Philippines – customer care Very empathetic and understanding Want to be helpful

• Can be a challenge with talk times or culture South America – Spanish or Portuguese is best

competency set. Infrastructure is still a challenge

South Africa –English with a “proper accent” Good education culture and language Perceived bad reputation in the world Winning many UK contracts over India and Philippines


India

Huge amounts of talent – issue is for management to learn how to harness it

Indians like working for a foreign company- has kudos. Also very loyal to the boss on a personal level, if treated right

People don’t like giving bad news – learn to ask questions (right questions)

Culture compliance


India

Tax breaks end 2010/2011 Foreign investment may want to set up in

Mauritius for tax breaks and then operate in India “Newspaper Test” – often the largest judge –

Taxation, double taxation, employer desirability, …

Simple to operate and defensible against examination by governmental bodies.


India - Scale

Steady state is around 500 -700 seats for break even. 1000 seats offers room for profit.

Is their room for a win/win or will scale prevent this? Does technology integrate for delivery of information and

population of data from interaction? How do you resolve SLA issues? How are these resolved if they involve cultural overlays? Timeframes?- When is the required returns/results

expected? Is it realistic?


Philippines

US Occupation Familiar with US – Culturally unique Very Strong Empathy and will follow

script Political and Ethical Challenges Many similar challenges to India but

not as extreme


Outsourcing Partner Selection Criteria…!

Implementationaspects

Technicalfeatures

Functionalityfeatures

Businesssavvy

Price Vendorviability

Scale Number of customers References Partners

Consulting Training Duration Phased approach

Existing infrastructure Customization skills Reporting flexibility Support and maintenance

Call tracking Customer tracking Customer specific routing Multi-channel approach

Process emphasis Definition of escalation Incident resolution Prior experience insimilar business processes

Legend:

Vendor 1 --------------Vendor 2 --------------Vendor 3 --------------


Final thoughts…

If you only look at the costs you’ll be in big trouble…. You have to be able to build up a two-way trust. You can’t plan to use an outsourcer then beat them

up into performing well for you by providing a lot of restrictions and barriers

Cost wise, it will make little difference to offshore outsource for Middle East based companies, however local outsourcing can be significantly meaningful! Multicultural Multi-lingual


For more information, contact Naeem Mirza +965.6636.3007 [email protected]

contact centers outsourcing

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