Contact Centre Outsourcing: Gaining a Competitive Edge
Contact centre outsourcing has seen considerable growth in recent decades, the global market is estimated to be over US$100 billion annually. But the growth is not surprising when the benefits of outsourcing are considered. There is sometimes a perception that the process is savings-led, but there are other benefits which also provide significant value. Businesses which have outsourced find that the customer service exceeds the standards they were able to deliver in-house, while the business itself benefits from leadership and support services, being able to focus more closely on its core products and services.
“The savings are considerable, which is why they may dominate the public perception of outsourcing. Even at the lower end, using a domestic provider that offers a similar service level, contact centre outsourcing are around 10-15% cheaper than delivering that service in-house. Many savings come from the larger scale at which contact centres operate, each one typically having anywhere between 20-40 clients,” says Ralf Ellspermann, CEO of PITON-Global, a leading mid-sized call centre in the Philippines.
This means that things like capital costs are shared, avoiding the expense of locating and fitting out a costly call centre. And individual client revenue costs are also lower, contact centres are able to operate lean and focused support services. They also have better staff retention, meaning they avoid costly ongoing recruitment, and their size means they can use resources, whether that’s their physical space or management and supervision overheads, more efficiently.
The surprising benefit for many businesses is the additional focus and capacity they get as a result. A long-running trend in business has been to move towards more focused operations, reversing the previous tendency for businesses to expand horizontally or vertically. Instead of thinking that big is beautiful, they look to do just one thing but do it exceptionally well and achieve success in this way. Contact centre outsourcing is an extension of this. Customer service is important, but not the business’s core competency, it is logical for it to be handled by another business for whom it is a specialisation”, says Ellspermann.
And that means that customer service frequently improves following outsourcing. Indeed, many of the factors that contribute towards contact centre outsourcing offering a savings also helps it offer better service. A contact centre partner’s size and scale means that it has a depth of experience and expertise in customer service that an in-house team typically cannot match. While its ability to attract, retain, and develop staff means that customers get a better experience when contacting them. Call centres have invested heavily in their services and premier providers usually offer AI-assisted services, enabling them to process more contacts, more successfully. Moreover, they can often scale easily. A contact centre can adjust its resources to meet the demands of a product launch, seasonal variation or business growth, far more rapidly than in-house contact centres.
The combination of offering increased capacity for the business, and better service for the customers are, arguably, justification enough for contact centre outsourcing. The savings, however, make it a sensible business choice. Those who are prepared to look at offshore options can save up to 40-50% by partnering with a premier contact centre in the Philippines. Located in a convenient time zone, with incredibly high levels of nearly accent-free English proficiency, the Philippines is a world leader that is popular with the Australian market. Wherever it is chosen, the combination of service, savings, and the opportunity for renewed focus have ensured that outsourcing is a standard practice for leading businesses. Ultimately, contact centre outsourcing allows companies to focus on their core competencies and gain a more competitive edge in the marketplace.