CRM - May 2008 - (Page 39)

They're Off! OFFSHORE, THAT IS—AND NEARSHORE, AND HOMESHORE. WHEN IT COMES TO OUTSOURCING CONTACT CENTERS, IT'S A WHOLE NEW HORSE RACE by Christopher Musico Outsourcing—and, even more controversially, offshoring—had typically been looked at like a horse bet: Many companies placed their entire contact center operation in the hands of one country—more often than not, that meant India, which offered a large labor pool of English-speaking agents. Companies saved a great deal of money, and were able to attend to what they considered the critical aspects of their businesses. “Most organizations are moving to outsourcing because they want to focus on core competence,” notes Michael DeSalles, strategic analyst at research analyst firm Frost & Sullivan. Outsourcing became a staple for many companies’ customer service strategy—and business was good. However, as more companies started to rest their contact center goals www.destinationCRM.com squarely on India’s shoulders, backlash reared its head. Press reports began citing customer dissatisfaction with Indian contact center agents as well as stories of myriad health problems with Indian agents who worked long night hours to adjust for the time difference with United States callers. Despite this, the worldwide outsourcing market, including the offshoring facet, continues to grow at a steady pace—8.1 percent in 2008, according to a study from industry research firm Gartner. Even larger gains are predicted for the business process outsourcing (BPO) segment—in which contact center outsourcing primarily lies—from $160.7 billion in 2007 to $235.2 billion by 2011, a compound annual growth rate of 10.3 percent. How can the market remain robust despite the popular backlash? The answer requires more than just a bird’s-eye view of the overall industry. Outsourcing is with us for the foreseeable future, but the manner in which companies are outsourcing is shifting dramatically. It’s no longer a horse bet— pick the winner!—but rather reminiscent of a sound retirement strategy: Diversify, diversify, diversify. The realization that a healthy mix of outsourcing options is a safer bet is driving companies to consider operations in more than one country, and in more than one center. In fact, according to Frost & Sullivan statistics, the offshore segment is projected to represent only 25 percent to 35 percent of total North American outsourcing revenues by 2013. No one believes for one second that 39 CUSTOMER RELATIONSHIP MANAGEMENT | MAY 2008 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - May 2008

CRM - May 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Is CRM Too Hard for Microsoft Vendors Go Virtual For Feedback Sense-sational Marketing How UGC Can Benefit CRM DestinationCRM Dashboard Price Check, Aisle 5 Required Reading The Moving Target The Excellence Myth Seven Steps to SOA Success And They're Off! Are You Ready to Party? Skin in the Game The Right Numbers Secret of My Success Re: Tooling Connect Pint of View

CRM - May 2008

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