Are You Making Smart Sourcing Decisions? - Alorica · 2020-03-24 · This trend is driving further growth in business process outsourcing (BPO), and shifting ... complaints stem from

Place Cover PhotoHow to Get It Right in the “Age of the Customer”

Are You Making Smart Sourcing Decisions?

2

In this era of customer

empowerment driven by

technology and data, it takes

a lot to thrive—and what it

takes is constantly evolving.

© 2016 Alorica Inc. All rights reserved.

3

To remain competitive, companies

must apply information intelligently,

using it not only to optimize

business processes, but also to

enhance the customer experience. © 2016 Alorica Inc. All rights reserved.

4

It’s all about knowing what the

customers want—before they

even know they want it.


Are You Making Smart Sourcing Decisions? Introduction

6© 2016 Alorica Inc. All rights reserved.

Anticipating your customers’ desires is no

small task, and many companies struggle

to get it right. And so, more and more

organizations are turning to outsourcing

providers for the strategic benefits and

expert guidance they can offer.

This trend is driving further growth in business

process outsourcing (BPO), and shifting

the focus from cost reduction to customer

experience enhancement.

Outsourcing in the “Age of the Customer”

According to Forrester, the top

strategic priority for BPO

decision-makers is to “improve

the experience of customers.” i



Today, customer expectations are increasingly high, and there’s little leeway

for poor customer service. Outsourcing customer care not only can improve

business processes and operational effectiveness, but can also help to deliver

a seamless and more enjoyable customer experience.

Keeping all this in mind, selecting the right outsourcing partner is the first and

most critical decision to make when you begin to explore outsourcing.




Before you decide to partner with an outsourcing provider,

consider these critical elements:



5. Smart Sourcing Builds Long-term Success

1. It’s Not Just About Cost 2. Location, Location, Location

4. Relationship Matters

3. Seamless Delivery Requires Integrated Technology

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Are You Making Smart Sourcing Decisions? It’s Not Just About Cost


As you begin to whittle down options for

an outsourced customer care provider, it’s

important to look beyond cost reduction

as the primary rationale. While cost savings

remain important—with most companies still

saving as much as 25–50% on back office

costs—the real value comes from the level of

customer care and engagement that a great

BPO partner can deliver to your customers.ii

It’s Not Just About Dollars 98% of US consumers

surveyed said customer service was

either somewhat or very important

in their choice of and loyalty to a

brand, according to recent Microsoft

report.iii

Additionally, 56% of surveyed

customers reported having higher

expectations for service than in the

prior year. iv



With growing expectations from customers for more engagement and better

responsiveness from brands—including digital care options, quick service, and

fast issue resolution—companies are now turning to outsourcing providers

for more strategic services. These services include planning support, business

insight, process optimization, and customer experience transformation. In fact,

findings from a 2015 Deloitte survey predict “business insight” will replace cost

as the most important strategic objective for the contact center industry.v

Outsourcing partners with large scale, proven processes and advanced

analytics can help you raise the customer experience bar faster than you could

alone. Outsourcing is more than just a cost play. Other advantages are equally

or more important, and savvy buyers look at the big picture to understand how

an outsourcing partner can deliver on all fronts.

It’s Not Just About Dollars



Smart Sourcing Tip:

Weigh the Value of an Outsourcing Partnership


When evaluating options, ask questions, talk to references and assess how well apotential partner can help you to:

• Leverage experience and best practices

for customer service delivery

• Provide insight into how the industry

solves common challenges

• Focus your company’s energy,

innovation and investment on

delivering its core product

• Offer diversity, scalability and flexibility

in your delivery model, particularly

when volume is volatile and/or has large

seasonal peaks and valleys

• Reduce the need for capital investment

to build and manage your own facilities

• Take advantage of the cost savings

offered by labor markets where you

don’t own facilities

• Capitalize on the economies of scale

provided by a larger customer

service operation

An experienced outsourcing partner can help

you navigate the ever-evolving landscape

of customer experience delivery. But for

the partnership to deliver real value, it must

help you gain a competitive advantage by

elevating the customer experience, while

simultaneously reducing support costs.

So, how can you know if an outsourcing

BPO partner will rise to the challenge?

Are You Making Smart Sourcing Decisions? Location, Location, Location

14

When buying a house, location is a

supremely important consideration.

Will it suit your lifestyle? Is it in an

area that is appreciating in value?

And most critically, does it

have a pool?


15

In the same way, selecting the

location for outsourced customer

care operations is just as important.



Support ChannelsLook for what you need:

Voice, chat, email, video, text,

social support


Size of Your OperationConsider today, but also look

into the future.

StrategyCheck: Does your potential

outsource partner’s objectives

match well with your own

Culture Of The CompanyWhat are the values that your

partner must embody to uphold

your brand?

Timeline & SeasonalityAssess your critical hours of

operation: Are there seasonal

peaks and valleys?

Footprint Of Current Support

Consider your volume, types

and complexity of calls.

Languages RequiredEvaluate the languages that

you need, and also consider

sensitivity to accents

and dialects.

RiskGauge your comfort level

with geo-political, time zone,

language, or cultural barriers.

Smart Sourcing Tip:

Discuss in Detail With Potential Partners the Following Location Considerations:


Depending on your responses to these details, your organization and its

operations may be better suited to one or more types of outsourcing

arrangements. For instance, if you have limited tolerance for risk, but are not

hugely sensitive to price, keeping your operations onshore will provide the

greatest peace of mind, while allowing you to focus on the core aspects of

your business.

On the other hand, if price sensitivity is a driving force, and you have a large

footprint to support, offshoring to distant locations like the Philippines will

be most cost-effective. Meanwhile, if you find yourself somewhere in the

middle—needing a cost-effective solution, but with limited risk—you can

keep your operations nearshore in a region with similar time zones and a

close cultural connection.

Finding the Right Arrangement



Ideally, you want to select a partner with a

portfolio of locations that can satisfy varying

needs. But whatever arrangement you select,

the good news is that virtual co-location

technology makes it possible for leading

business process outsourcers to deliver a

seamless customer experience, regardless

of geography.

Finding the Right Arrangement



Did You Know?

Outsourcing in the PhilippinesThe Philippines is one of the world’s most

popular offshore outsourcing destinations.

It is home to more than 1.2 million customer

care workers, a number that continues to

grow.vi In truth, there is no other location with

the cultural affinity, labor pool and scalability

of people and infrastructure currently

available in the Philippines. Even with

prices in metro Manila rising in recent years,

outsourcing in provincial areas is still highly

cost-effective. In addition, distributing volume

across the provinces helps broaden the labor

pool and provides greater protection against

weather-related service disruptions.



Did You Know?

Outsourcing in GuatemalaFor clients looking for an unparalleled

nearshore experience, Guatemala makes an

excellent choice. With its close proximity

and cultural affinity to the United States,

Guatemala makes doing business convenient

and cost-effective. As the most populated and

stable country in Central America, Guatemala

continues to provide significant growth

opportunities for the outsourcing industry.

It offers not only the largest workforce and

student population in Central America, but

also provides access to a large number of

qualified English-speaking candidates.



Find the Right Footprint...Working with an established and experienced outsourcing provider limits

risk and makes future expansion into new markets more viable. In addition,

the provider should be able to provide insight into these six critical

location considerations:

Human Capital What is the level of education of the available work population? What language capabilities exist? Is the population large enough and skilled to be able to support current and future needs? Even if you are the first to enter the market, do not assume that you will be alone for long.

Cultural Affinity How readily will the employee population be able to understand and relate to your customer market? Context is an important aspect of customer experience. Most “language” complaints stem from a customer feeling as though he or she has not been understood, rather than from an accent impeding communication.

Market Maturity Are there other contact centers (either captive or outsourced) operating in the region? How successful are they? How much competition will you face while hiring? What support will you need to provide to onboard your operation? Is there local quality, IT, workforce management and leadership bench strength, or will you need to expatriate employees in the short- or long-term to support the facility?



Infrastructure Is there sufficient and reliable voice and data infrastructure available? Are there multiple carrier options available for redundancy? How easy or difficult will it be to source equipment or fixtures? Is a reliable utility infrastructure in place?

Geo-political Risk How safe is the region? How likely are civil unrest, natural disasters, corruption, fraud or other issues to pose a safety or security concern for your business and its employees, clients or visitors? Is the government stable and supportive of the industry?

Cost Will the proposed location allow you to deliver the experience you desire at a cost that is competitive with other regions and with competitors?

… and Balance Your Priorities.

Finding the right balance between these priorities can be challenging; there is

no one-size-fits-all answer. Instead, approach sourcing decisions with an open

mind. Let your partner understand your current and future needs and guide

you to the best solution for your customers and your business.


Are You Making Smart Sourcing Decisions? Seamless DeliveryRequires IntegratedTechnology


Customers use a variety of channels to

interact with brands, and your contact center

is a critical link in their journey. While more

than 70% of customer interaction journeys

begin online, phone support continues to

remain where the majority of customer

complaints are ultimately resolved. What’s

more, Forrester predicts that this shift will

continue, and phone support will become

an important escalation point for customers,

rather than a primary channel of support.vii

Seamless Delivery…

Are You Making Smart Sourcing Decisions? Seamless Delivery Requires Integrated Technology

While more than 70% of customer interaction journeys

begin online, phone support

continues to remain where the

majority of customer complaints

are ultimately resolved.


How you move your customers between these

channels is important. Customers have a low

tolerance for wasted time or having to repeat

themselves from one interaction to the next.

According to data from Forrester, 55% of

U.S. adults are likely to abandon their online

purchase if they cannot find a quick answer

to their question. In addition, 77% said that

valuing their time is the most important thing

a company can do to provide them with good

online customer service—up six percentage

points from 2012.viii

Seamless Delivery…


55% of adults are likely to

abandon their online purchase if

they cannot find a quick answer

to their question.

77% of adults said that

valuing their time is the most

important thing a company can do

to provide them with good online

customer service, up 6% from 2012.


The tools and technology required to execute a seamless cross-channel

customer experience exist—but selecting and implementing them effectively

is no simple task. In fact, only five percent of organizations feel that they have

mastered digital technology to a point of differentiation from their competitors.ix

So how do you know what tool is right when there are so many choices on

the market? How can you implement new technology without affecting the

customer experience? And how will you realize enough ROI to make the

expenditure worthwhile?

These are the kinds of questions a trusted and experienced outsource partner

can help solve. And the best ones will have skin in the game, serving as

ongoing strategic partners with accountability for the results.

… Requires Integrated Technology.



Smart Sourcing Tip:

Find a Partner With Digital ExpertiseThe right outsourcing partner will be able to

guide you through the myriad of technology

to create a fully-integrated customer

experience. Be sure to look for a partner

that has participated in multiple technology

implementations and has put a number of tools

to the test. Not only will they have had the

opportunity to see how agents use these tools,

they will have experience monitoring these

tools in real-world, customer-facing scenarios.

As an added benefit, due to the size and

scope of their operations, most outsourcing

companies often get technology pricing at

scale and can share these cost breaks with you.


86% of CEOs considered

investing in digital transformation

crucial to their company’s

future success.x


Smart Sourcing Tip:

Find a Partner With Digital ExpertiseYour outsourcing provider should be able

to use the tools you implement, as well as

their own analytic capabilities, to identify

and solve customer problems. Repeat calls,

escalations, decreased use of self-help

channels, abandoned purchases and other

issues may be driving customer dissatisfaction

and increasing your costs; by identifying these

root causes and eliminating the breakpoints,

your partner can help you realize the ROI you

need from your technology investments and

increase customer satisfaction.


31% of CEOs said that more

than 15% of their revenue is spent on

technology investments that span all

areas of the business, with a greater

portion than ever going to customer-

facing technologies.xi

Are You Making Smart Sourcing Decisions? Relationship Matters


The most impactful element of effective outsourcing is the relationship you

forge with your partner. Before you select a provider, make sure you fully

comprehend who they are, what they stand for and what they are looking

for as well. Taking these steps to understand your potential partner now

can prevent conflict and disappointment later on.

The truth is, you’re going to spend a lot of time together. You’ll face challenges

and triumphs. If you trust the partner you choose, taking the journey together

will be easier.

The Relationship Matters Most


Relationship Matters


Look for a partner that can help you achieve

balance between the priorities of delivering an

effortless, effective and engaging interaction

for customers, while meeting your objectives

and driving results. Make sure your partner

is willing and able to do what it takes, and

stands to share in both the risks and rewards

of delivering on those goals.

A mutually beneficial partnership is the best

way to drive the experience you want for

your customers.

The Relationship Matters Most



“The healthiest customer

experience ecosystems create

value for all of their participants

—not just their customers.” xii

75% of employees

with above average customer

experience in their industry are

highly or moderately engaged,

compared with only 47% at

other companies.xiii




Smart Sourcing Tip:

Build a Partnership CultureHow you manage the relationship with your partner will make a huge

difference in the results you achieve. If you’re too prescriptive, you may stifle

creative problem solving and restrict the benefits you can glean from your

partner’s broader industry experience. An experienced outsourcing partner’s

ability to draw solutions to parallel challenges and bring them to bear on your

business is one of the primary values they offer.

Similarly, how you manage your relationship with your partner directly impacts

their relationship with their employees. According to a recent employee

engagement benchmark study, 75% of employees at companies with above-

average customer experience in their industry are highly or moderately

engaged, compared with only 47% at other companies.xiv




Smart Sourcing Tip:

Build a Partnership CultureWhile this research is specific to millennials (who now make up a significant

and growing percentage of contact center workers around the world), the

trend in employee expectation is not exclusive to them.

The trust you put in your outsourcing partner and the latitude you give them

to create an empowered employee experience directly correlates with your

partner’s ability to attract and retain the type of talent that will deliver for you

and your customers.

Typically, when organizations are prescriptive or not transparent, it’s because

they’re worried of losing control of their experience, or are afraid of what their

partner will do with the information. The truth is that if you have chosen a

partner wisely, empowerment and transparency solve problems—they don’t

create them.

Are You Making Smart Sourcing Decisions? Conclusion



Conclusion

If you enter the sourcing process as a simple cost-saving exercise, you will

get what you pay for—and your customers will likely notice. Not only that,

but you’ll almost certainly miss out on a trove of strategic benefits.

If you want to source smartly, select a capable partner that you trust. Share

your vision, share your desired outcomes and let your partner work with you

to achieve these goals. Give your partner the ability to steer you to the

locations, technology, and employee culture that will deliver the customer

experience you need to succeed.

Smart Sourcing Builds Long-Term Success

36

Build loyal customers. Grow your

business. Go! Partner! Win!

For more information—and to get started on transforming your

company—call 866-ALORICA or email [email protected].


mailto: [email protected]

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Are You Making Smart Sourcing Decisions? About Alorica


Alorica


About Alorica

Alorica is a leading provider of Business

Process Outsourcing solutions that span

the entire customer lifecycle. Good, glad

we got that out of the way. Here’s the deal

—we think serving customers is awesome.

And that’s why, when it comes down to it,

we really only do one thing—we make lives

better…one interaction at a time.

PASSION • PERFORMANCE • POSSIBILITIES

These are the principles that guide us in

helping others make better choices and

informed decisions. They’re more than

words. They’re our rally cry.

PASSION

Everything starts with conviction. A desire

to obliterate the status quo, and the

audacity to believe that we will. We’re

problem solvers. Question answerers.

Strategic dreamers. We see every

interaction as an opportunity to create

opportunities—for our customers, our

clients, our colleagues and our communities.

PERFORMANCE

We’re 110% committed to the end result.

Onward and upward, it’s all about taking

our clients to the next level. We stay

engaged. We mine new sources of

inspiration. And we give it our all, no

matter the challenge. They say go big or

go home. We don’t believe in the latter.

POSSIBILITIES

100,000 employees. Operations in 16

countries. Over 70% of our clients are

Fortune 500 companies. So where do we

go from here? Anywhere. Everywhere.

We’re always innovating, evolving, imagining

new ways to continuously improve. Some

see the sky as the limit. We see the sky as

a stepping stone.

WHAT’S IN OUR SECRET SAUCE?

A spoonful of customer care. A dash of

technical support. A pinch of revenue

generation. Equal parts receivables

management, customer retention and

reverse logistics. Fulfillment and B2B

solutions, for sweetness. And finally,

hosted contact center solutions, direct

response and back office processing for

that added kick.

Guess it’s not so secret anymore, huh…


i “Digital Transformation in the Age of the Customer,” Forrester, October 2015, https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Digital_2 /Accenture-Digital-Transformation-In-The-Age-Of-The-Customer.pdf.

ii “Outsourcing Delivers Savings of 25-50% on Back Office Costs.” The Hackett Group, 2015.

iii “NEW REPORT: 98% of U.S. Consumers Say Customer Service is Important in Choice of, Loyalty to Brands,” Morris, July 7, 2015, http://www.parature.com/state-customer-service-us.

iv “2016 Microsoft State of Global Customer Service Report,” Microsoft, 2016, https://info.microsoft.com/dynamics365-global-state-cust-service.html.

v “2015 Global Contact Center Survey Executive Summary,” Deloitte, June 2015.

vi Magkilat, Bernie. “1.2 million BPO workers seen by December 2015.” Manila Bulletin, October 5, 2015, https://www.pressreader.com/philippines/manila-bulletin/20151005/282114930394422/TextView.

vii Leggett, Kate and Schoeller, Art. “Contact Centers Must Go Digital or Die: Rework Your Contact Center Technology and Staffing Models to Align With Customer Channel Preferences,” Forrester, April 3, 2015.

viii Ibid.

ix Ibid.

x “A Marketplace Without Boundaries: Responding to Disruption.” PricewaterhouseCoopers, September 2015.

xi Ibid.

xii Parrish, Rick, “Reinvent Customer Experience,” Forrester, January 16, 2016.

xiii Temkin, Bruce, and Zdatny, Isabelle. “Employee Engagement Benchmark Study, 2015.” Temkin Group, February 2015.

xiv Ibid.

Bibliography


About Alorica