Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Evolution of Outsourcing

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

Recommended for you
Service Provider
Solution Designer
Technology Enabler
Blog
Why Employee Recognition Means So Much

At Webhelp we are passionate about our people and their contribution to the company. Recognising our teams and ensuring they know just how valued they are is a core value of Webhelp. There are many companies that talk about employee recognition because it sounds great on their website, but I believe that in this organisation we really do walk the walk when it comes to all of our values! I...

News
Top Performers Recognised At Webhelp South Africa’s Annual Star Awards

Webhelp recently hosted its fourth annual Star Awards event, held at the Bay Hotel in Cape Town. This event saw representatives from the company in South Africa and the UK come together with clients, industry partners BPeSA and CCMG as well as impact sourcing partners Harambee and Columba, to...

News
Webhelp’s market expansion strategies in the contact centre outsourcing market earn it accolades from Frost & Sullivan

Webhelp's keen focus on agile customer experience (CX) solutions has helped it grow across Europe in an intensely competitive market Based on Webhelp’s successful growth strategy across Europe, Frost & Sullivan has recognised the company with the 2018 European Market Leadership Award in...

Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Case Studies
Post Office Limited®

...

×

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