Most companies perform some kind of customer service, whether that involves handling and processing orders, back-end support, or both. In many companies, the ongoing debate is: should we handle the process internally, or would outsourcing customer support be more cost effective?
Many companies view this question as one of cash flow — how much (more) is outsourcing than managing customer support in-house. But evaluating and comparing these options is more complex than simply cash flow. Here are some other key factors:
We all get that there is a differential in base wage from internal vs. outsource, but internally we also have the somewhat hidden costs that include benefits, sick pay, vacations, holidays, and the training and management of the agents. Then we need to figure in the cost of recruiting associated with the original hire and then the recruiting, rehiring, retraining costs associated with attrition. And now that we mention attrition, are we factoring in all of those costs?
Companies that operate in-house call centers often do not realize, are not aware of, or do not include all the hard costs, so they do not have a complete picture of what they are spending to do it themselves. Therefore, they do not realize the true cost of insourcing.
This is one reason companies come to us. We help them see what other costs are involved that they may not have considered. Costs often overlooked include the space to house the agents, furniture, equipment, managers, trainers, Quality Assurance personnel, investments in technology for a voice platform, voice analytics, reporting platform, etc.
It is also important to look beyond direct expenses. There are MANY opportunity costs associated with running your own internal contact center including items such as:
What if you’re out of space and considering an extra 5,000 sq. ft. on the floor above? How much square footage are you utilizing to house CSRs?
Are you factoring in all the overhead associated with an additional X employees? Perhaps the CSRs and all the associated supervisory and management personnel are putting you over the line for certain HR regulations. And if it’s not HR, it’s any number of administrative costs associated with having an additional team of employees.
Do you have the critical mass to scale up all the technology needed to successfully operate a 21st-century contact center? There are a lot of systems required — telephony, workforce, HR, payroll, quality assurance, etc.
What is the ongoing capital investment for technology, security, reporting, etc? Is it possible that you could wind up limiting investment in equipment, R&D, etc., for your core business because of the ongoing investment in a call center?
And what is the opportunity cost if you operate your own center and then don’t keep it current? How will that affect your ability to perform the customer service and support function at the level that you and management determines is necessary to support your customers.
And then there is the human side — how you are utilizing your people? It is one thing if you have 50,000 employees and you need an extra 20 people for the call center. But what if you have a 100-person company and you need 50 people for your call center? Or you have just 50 regular staffers but need 100 to handle customer service?
If your company is virtual — a very small staff using cloud-based services — operating a call center requires that either you shift your focus or hire a new set of people to ramp up a quality contact center. It gets worse if call center needs are likely to fluctuate for seasonality or other reasons. Now, the tail is clearly wagging the dog. With all the systems and support required, you are now in the call center business instead of focusing on your company’s core offering.
Is outsourcing customer service cost worth it? Well, the contact center is on the front line, dealing directly with your customers every day. You do not want to cut corners and deliver a bad product to your customers as their first impression, or any impression.
If your internal call center is already a solid operation, then the cost may be worth it. Otherwise, spending a little more to outsource to ensure customer service excellence will be money well spent, and in reality, once you have all the costs at your fingertips, it may really not cost any more at all.
Publish Date: January 29, 2019 5:00 AM
|1.)||3D Vision Consulting|
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|2.)||Call Center Masters|
Giving consulting services to call centers
|3.)||CC-CMM Certification Institute|
Service Journey Thinking
Service Journey Thinking is a comprehensive approach for improving the experience customers have along the service journey. It considers the service journey not only from the customer’s perspective, but it also examines the components that support the experience, including people, technology, processes and policies. By applying Service Journey Thinking, COPC Inc. helps brands promote greater efficiency, improved performance and reduced cost within their operations. For customers, this means reduced effort, improved satisfaction and enhanced loyalty.
Call Centers, Contact Centers and Cloud Solutions Consultancies
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Customer Support Asia assures the success of service offshoring initiatives in the Philippines. Our consultancy serves both:
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We support both contact center services and "back office" BPO projects, limiting our practice to sites in the Philippines
Contact Centre Specialist Consulting
CX Consult provides specialist contact centre consulting with decades of experience across Australia and Asia/Pacific lead by industry expert Justin Tippett. Services include health checks, optimisation, outsourcing (local and offshore), technology upgrades, strategy and more.
Whether you have a 5 seat contact centre or a large multi-site operation we'll provide you with expert advice to ensure you can achieve your business objectives.
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Contact Center Consulting & Profit Improvement (Lean Six Sigma), Inside Sales, Efficiencies, Call Center Audit, Technology & vendor selection, Telephony, Recruiting, Training, Performance Management, Customer Journey Mapping, Software (CRM) Implementations
|9.)||Lieber & Associates|
Contact Center Consulting
Lieber & Associates assists organizations with contact center issues.This includes management, processes, training, and technology. The firm's assessments evaluate and make recommendations for 15 call center areas ranging from call seasonalities to staffing to better use of the telephone systems. Contact center technology services range from new technology selection and implementation to problem-solving and optimization to technical trouble-shooting. Senior consultants have more than 20 years of experience each and are leaders in their discipline. Clients span most business sectors.
Mpathy Plus transform service, improve performance and provide operational support. We work in all areas of customer service and contact centres from initial strategy, feasibility studies, business cases, project management through to operational reviews, resource planning etc. We are independent and have vast experience of implementing, managing and changing contact centres and the customer experience.
Outsourcing Solutions Europe is an advisory firm that helps companies to find the right contact center/BPO partner to serve European customers
|12.)||PCA Advisors Ltd|
Contact Center Sales - growth and marketing strategies
I work with contact centers to position their companies to take advantage of opportunities that exist for them. We also work with their existing sales team to improve their communication and hunting skills. 'Growth' is our greatest ability.
Pelorus Associates is a market research and marketing communications company that assists developers of contact center solutions by providing in-depth market research and by authoring white papers, e-books, and blog posts.
We can help You boost Your business results by:
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PT VADS Indonesia provides consultancies with trainers, modules, a development programs for individuals and/or teams. Types of consultancies provided by PT VADS: Knowledge Process, Transformation Consultancy, Customer Services, Contact Center, Leadership, Interpersonal Development, Motivation, Training for Trainers and Digital Marketing.
|16.)||SCC Services Group|
Contact Center Operations Performance Management
In today’s competitive business environment, contact center and marketing professionals are constantly challenged to manage a growing business, achieve superior performance levels and at times are asked to support services and products that are becoming more complex.
Faced with this reality, the consulting disciplines that SCC Services Group focuses on are operations management and service delivery excellence in the customer service, contact center and brand marketing arenas.
Our consulting practice puts emphasis on:
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|17.)||The Taylor Reach Group|
Established in 2003, The Taylor Reach Group is an award winning, call, contact centre and customer experience consulting and advisory firm. The company is based in Toronto and has offices in New York, Atlanta, Washington, Ottawa, London, Bangalore, Hong Kong and Beijing. We are vendor agnostic and do not partner with technology or outsource agencies. The only one who pays us are our clients. Each of our consultants possess a minimum of 20 years of ‘hands-on’ call/contact center operational management experience. We do not sell the pyramid, the seasoned experts you deal with through the sales process are the same people who will complete your project.
Taylor Reach has worked with contact cen...
|18.)||Triad Services |
Services Triad is a consulting firm with experience in the field of customer relations. He will celebrate his 25th professional anniversary in 2021. His facilitation skills and creativity allow him to work on many transformations related to the operational management challenges of customer contact centers.
With the support of his consulting team, he collaborates to many projects in Canada and abroad for public and private sector organizations. More than 275 consulting assignments and 150 benchmarking studies are part of his curriculum.
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