Winning with Team USAWinning with Team USA
By Steve BrubakerSr. Vice President
InfoCision
Call Center “Outsourcing”Call Center “Outsourcing”
Offshore
or
Domestic (USA)
Business Week, June 21, 2004Business Week, June 21, 2004
Datamonitor: by 2007 16.1% of agent positions will be
outsourced offshore….
Datamonitor: by 2007 16.1% of agent positions will be
outsourced offshore….
Most Popular Offshore LocationsMost Popular Offshore Locations
• India • Philippines• Latin America• Caribbean• South Africa
Choosing an Outsource Partner Choosing an Outsource Partner
• Reasons are the same Offshore or USA• ROI• Experience & Depth of Management
Team• Quality & Innovation• Client References – Satisfied
Customers• Regulatory Compliance Expertise
The Cost Factor - R.O.I.The Cost Factor - R.O.I.
• Quality Communication• Regulatory Compliance• Consumer Privacy• Cultural Connection• Technology• Service Levels - Productivity• Travel and Relocation
Cost Savings in FocusCost Savings in Focus
• Significantly lower than anticipated despite wages at 10-20% of agents in USA
• Meta Group: Lower Productivity can add up to 20% in additional costs offshore
• Jim Poole, CIO of W.C. Bradley, told NewsFactor. "In terms of cost alone, outsourcing is a high-risk solution."
Cost Savings in FocusCost Savings in Focus
• Dane Anderson, program director for Meta Group , told NewsFactor. "You have to weigh the costs throughout the entire agreement - not just in labor rates."
• There is no such thing as a free lunch or cheap outsourcing, says Gartner. The firm predicts that 80 % of organizations that outsource customer service will fail to reduce costs.
• Business Wire predicted savings of 30%-50%, realistically come in closer to 15%-20%.
Losing Money by Spending LessLosing Money by Spending Less
Web.com • “Outsourcing the customer
support process may have resulted in a 3:1 savings in gross costs, but this was quickly negated when customers began leaving in droves due to the lower quality of service that resulted.”
Quality “Insurance”Quality “Insurance”
• Call Center Industry Created in the U.S.
• Partner with Experience• Convenient Access:
Personal Client Involvement
ComplianceCompliance
• No Shortcuts• U.S. Client is Liable• Significant Ongoing Investment• Risk Management
More Legislation InevitableMore Legislation Inevitable
Offshore Bills:• State Tax $• Economic Development
Incentives• Truthful & Immediate Disclosure
of Agent Location• Redirect Call to US agent if
asked
Privacy of Consumer DataPrivacy of Consumer Data
• Consumer privacy laws vary by country.• Offshore employees cannot be punished
for violating U.S. privacy laws.• When you work with a domestic call
center, you can be sure that your consumer data stays in the United States and is protected by American laws and law enforcement.
• Learn from other companies’ mistakes (Capital One, Conseco).
ID TheftID Theft
ChoicePoint and LexisNexis• US Laws do not apply to
information sent overseas to foreign-owned companies.
DMA Ethics Dialogue in Los Angeles • ID Theft was #1 concern
Communication and CultureCommunication and Culture
• 92% of U.S. consumers form their image of a company based on their experience with the contact center. (Purdue University, Center for Customer-Driven Quality)
• 65% of American consumers would alter their buying behavior toward a company if they knew it was using an offshore call center regardless of the level of satisfaction. (Purdue University, Center for Customer-Driven Quality and Benchmark Portal, Inc.)
Comprehension ObstacleComprehension Obstacle
• EDS UK - Warns companies transferring call centers to India risk alienating consumers.
• Rudy Oetting, “Heavy accents and improper English can be a major problem with offshore countries.”
Language usage and other cultural differences Language usage and other cultural differences
Information Week
What does “Yes” mean?• US – Person agrees• India – Understood what was said, not necessarily agreement
High TurnoverHigh Turnover
• Spectramind, division of Wipro, reported a 90 % annualized attrition rate
• PeopleOne Consulting reported that the pool of good candidates for call centers is limited.
The Management GapThe Management Gap
• “The major gap with most offshore providers is the lack of strong middle management. Because the industry is so young in these offshore locations, the depth of knowledgeable and experienced middle management is severely lacking.”
Jon Kaplan, TeleDevelopment
SecuritySecurity
• Since 9/11, concern for travel to countries in close proximity to instability, terrorism, or high crime.
• David Sims, according to XDNet India: Bangalore on radar of militant groups.
• Could American offshore enterprises become terrorist targets?
Customers Tell us What They “Really” ThinkCustomers Tell us What They “Really” Think
• Mike Budde, president and CEO of Advanced Data-Com, Inc. why his customers were unhappy with offshore outsourcers:• Extremely slow customer service response• Poor handling of data• Poor handling of file transfers• Lack of technical savvy, including inadequate
understanding of telephony and systems issues• Lack of Strong Management
TechnologyTechnology
• Technology is enabling companies to compete better on U.S. soil against foreign competition.
• IP Contact Center• Home and Virtual Agents• Better WFM, Routing and Self-Service
Technology
• Modern, flexible CRM and database products enable 360-degree knowledge of customers across all media points, leading to shorter call resolution and improved efficiency in agents.
The Greater Offshoring IssueThe Greater Offshoring Issue
• What is Long-Term Effect on American Standard of Living• U of CA
• Santa Cruz study
• Toyota• American Made
• Nobel Prize winner,
Paul Samuelson
The Reason FoundationThe Reason Foundation
Stop “Outforcing”
• High Federal Corporate Tax Rates
• A Faltering Education System
• Innovation Stifling Government Policies
Taylor Institute for Direct
Marketing
Taylor Institute for Direct
Marketing
By Dr. Dale LewisonChair – Dept. of Marketing
The University of Akron, Ohio
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