Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Evolution of Outsourcing

News
3rd April 2014

In the early days of customer management outsourcing, cost reduction was pretty much the only show in town. You might be forgiven for thinking that, in some organisations, not much has changed. In last year’s Global Contact Centre Benchmarking Report, which has monitored the evolution of customer management practice for fifteen years now, the number of organisations quoting the need to ‘save money’ as their principal motivation to outsource had doubled. A knee-jerk reaction to several years of recession and economic stagnation I’m sure, but a backward step nonetheless.

A draconian focus on cost reduction is likely to send service quality on a dangerous downward trajectory. When that happens, customer relationships quickly come under threat and revenues suffer. Organisations have relied upon outsourced service providers’ much vaunted ‘economies of scale’ to drive down cost but, the truth is those economies are far from infinite. Any business that has been outsourcing customer management operations for any length of time is likely to have exhausted them.

Does that mean then, that outsourcing has nothing more to offer?

By no means, new outsourcing models are emerging that move beyond incremental cost reduction to a dramatic financial realignment, as the fixed asset costs associated with physical and human infrastructure are transferred from the client organisation to the outsourced service provider (OSP). This transfer of assets, combined with a commitment to transform customer management performance, is giving new impetus to outsourcing and fresh hope to organisations struggling to keep pace with their customers’ growing demands for 24-hour omni-channel service.

That fresh hope arises from the OSP’s ability to reinvigorate customer management operations; to introduce new technologies and areas of skill and to help facilitate the evolution of omni-channel service delivery.

We know that, over the past ten years or so, the percentage of customer interactions managed via the voice channel has fallen from around 90% to 33%1. This is generating fundamental changes in infrastructure, skills and technology requirements that few organisations have yet come to terms with. As the voice channel declines, the physical buildings that house dedicated contact centre operations become an asset liability. As digital channels rise, the need to invest in technology and skills to support them translates into a tough investment challenge. In short, the evolutionary journey towards omni-channel customer management is one that most organisations are keen to take – their customers demand it and the long term economics are compelling – but they are desperately looking for ways to offset the price of the ticket.

Forward thinking OSPs understand the dilemma and have catered for it. They have shown themselves willing and able to take over existing facilities and workforces and enhance their performance, introducing the skills, processes and vital technology infrastructures needed for integrated omni-channel customer management.

By Webhelp UK CEO David Turner. Read more on business transformation and carve outs HERE


admin
Article by: admin

News & Insights

Service Provider
Solution Designer
Technology Enabler
Blog
The Game-Changer Mindset

New business ideas that are channeled towards creating innovative products pop up every day, however, very few of them manage to change the status quo in their respective fields. Executing an idea is just as important as the people who drive that change – they are a critical success factor of the project. “Don’t just play the game - change the game. The goals are to create, improve...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
Webhelp “Think Human”

Webhelp rings in its next phase of strategic development with new brand Paris-headquartered Webhelp, the European leader in customer experience and business solutions, today revealed its revamped brand platform, supported by an updated visual identity. The group’s new brand reunites the...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
Oor Wullie’s Big Bucket Trail | Charity Week

Webhelp is delighted to sponsor Oor Wullie’s Big Bucket Trail 2019, Scotland’s first-ever national public art trail, raising vital funds for children in hospital across Scotland. Each week of the event takes on a different theme, as it is Charity Week, it’s a perfect time to look back at...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
[Fashion] Fifty Jeans – Launch your brand without cashflow problems!

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
AI AND AUTOMATION: IMPROVING THE CUSTOMER EXPERIENCE

  The Webhelp Disruptor Series. Be part of it!   This paper has been borne of conversations with experts within Webhelp and beyond and is also the result of a YouGov study of over 2,000 adults in the UK. Find out consumer attitudes towards AI and automation and read expert views...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook