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Article : Why More than Half of Contact Center Outsourcing Contracts Won’t be Renewed


By Jeffrey Puritt, President, TELUS International

When it comes to selecting your Contact Center Outsourcing (CCO) partners, the conventional wisdom "more is better" has undergone an evolution. Traditionally, having numerous Business Process Outsourcing (BPO) vendors meant greater redundancy and potential for cost optimization. However, businesses are now becoming reluctant to spend the time and effort necessary to manage a large vendor portfolio – especially when it does not provide meaningful, strategic value.

As the shift to a "less is more" mentality continues, CCO is taking a hit. A new study released by Everest Group, with support from Telus International, found that less than 50 percent of end-of-term CCO contracts were renewed between 2013 and 2014.

And it’s not just CCO contracts that are under buyer scrutiny. Most BPO segments, including Finance and Accounting Outsourcing (FAO), Procurement Outsourcing (PO), and Human Resource Outsourcing (HRO), are experiencing higher rates of non-renewals than in previous years as well.

This trend towards consolidation prompts a key question: Why are some outsourcing vendors winning, when clearly others are not? The answer can be found in the delivery of strategic value created during the buyer-supplier relationship.


Six Factors Impacting Outsourcing Relationship Value

In the current BPO environment, service providers are presented with a unique opportunity to further strengthen their relationships with their buyers. This means structuring deeper and more engaged relationships from the start. We look to our front-line agents to be engaged, innovative and resourceful, so why should a buyer’s relationship with their service provider be any different?

To accomplish this, the supplier and buyer must agree on what truly drives value in the relationship. The study identified six key factors that buyers consider when evaluating the relative value of different contact center outsourcing relationships:


1. Communications Strategy – Talking with your partners on a regular basis sounds obvious yet, when it comes to outsourcing relationships, lack of communication is one of the biggest complaints amongst buyers. As a result, both sides need to define an engagement platform that includes collaborative information sharing practices. Whether you call them health checks, pulse checks, business reviews, or remediation plans, simply communicating more frequently can build and sustain relationship value.


2. Executive Relationship Building – It’s hard to build a strong relationship and resolve issues if the key people are nowhere to be found. Senior leaders should be present throughout the relationship and not just when the deal is signed. The governance model should include an executive steering committee composed of both buyer and service provider leadership. Again, it’s about structuring the partnership and setting expectations at the start to support ongoing success.


3. Employee Engagement – CCO is an industry plagued by high attrition, making employee engagement critical. After all, it’s the tenured and engaged employees who are motivated to provide the best customer and brand experiences. Therefore, a robust framework should be in place for engaging staff assigned to a buyer’s account.

Often, this goes beyond salary to include added benefits around learning and development, corporate social responsibility, team activities, and more. On the buyer side, outsourced agents should feel like they are part of the buyer’s organization – a true extension of the client’s team and brand. Simply branding the call center floor or empowering agents to use the product themselves (even creating super users) can create a more personal connection to the brand.


4. Customer Experience Innovation – Heightened buyer expectations require service providers to continuously work on enhancing their value proposition in order to remain relevant. Innovation can come in all forms, including enhanced recruitment and training programs, business process improvements through Six Sigma initiatives, technology enablement, and more.

Buyers must challenge their service providers to play a more active role in meeting their needs, while providers should identify opportunities for enhanced service offerings, improved processes and return on investment. As an example, when one buyer-service provider relationship focused on innovative ways to improve their employee engagement programs, agent engagement increased by 12 percent, attrition fell by 7 percent, and customer satisfaction increased by 13.6 percent, all in the span of one-year.


5. Quality of Service – At the start of an outsourcing engagement, all relationships experience some level of transition stress. From an operational perspective, this is one of the most challenging times. However, if service level metrics are continually missed and users remain dissatisfied, the partnership is in jeopardy. This often happens when relationships focus on minimizing costs and maximizing efficiency – a scenario that’s not typically suited to maximizing what’s most important: the quality of the customer experience.


6. Alignment with Business Objectives – When it comes to aligning business objectives, it’s a two-way street. Service providers must support the day-to-day operations while making an effort to understand the buyer’s overall business direction. At the same time, buyers need to take the time to educate their service providers on what matters most to their business and where the business is headed.

With increased comfort and understanding comes a higher focus on business outcomes rather than just the operational ones. When this happens, traditional service level agreements are either supplemented or changed to include more business-outcome oriented objectives such as sales conversions, customer satisfaction, likelihood to recommend, or net promoter scores.


The Changing Buyer-Service Provider Relationship

The "more the merrier" multi-vendor strategy to BPO was effective when the focus was on cost reduction and risk mitigation. Now, however, buyers are looking for fewer but more meaningful partnerships. This means a greater investment of time, commitment and other vital resources from both sides. From innovation to employee engagement to open communication, and more, it also means agreeing on what truly drives relationship value and partnership engagement. The six factors above are a good start.

Learn more:

About TELUS International

Jeffrey Puritt is President of TELUS International, a global BPO and ITO company with over 21,000 team members around the world, including in Canada, the United States, Central America, Europe and Asia. TELUS International is the global arm of TELUS, one of Canada’s largest telecom companies, with CDN$12.5 billion in annual revenue and 12.5 million customer connections.

About Jeffrey Puritt:
Jeffrey Puritt is President of TELUS International, a global BPO and ITO company with over 21,000 team members around the world, including in Canada, the United States, Central America, Europe and Asia.

About TELUS International:
Company LogoTELUS International (NYSE and TSX: TIXT) designs, builds and delivers digital solutions to enhance the customer experience (CX) for global and disruptive brands. The company’s services support the full lifecycle of its clients’ digital transformation journeys and enable them to more quickly embrace next-generation digital technologies to deliver better business outcomes. TELUS International’s integrated solutions and capabilities span digital strategy, innovation, consulting and design, digital transformation and IT lifecycle solutions, data annotation and intelligent automation, and omnichannel CX solutions that include content moderation, trust and safety solutions and other managed solutions. Fueling all stages of company growth, TELUS International partners with brands across high growth industry verticals, including tech and games, communications and media, eCommerce and fintech, healthcare, and travel and hospitality.
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Today's Tip of the Day - Make Training Fun

Read today's tip or listen to it on podcast.

Published: Wednesday, May 4, 2016

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2023 Buyers Guide Headsets

All Ears Ltd

Freemate headsets, and sanitary solutions for headsets
Freemate headsets available, corded and wireless for telephony and USB. 3 year warranty compatible with all model phones. We supply accessories from downleads, USB leads, ear cushions, leatherettes and we service call centre headsets, these are sanitised and repaired or serviced as required.

We supply the corporate environment, Government departments, security, medical and professional offices and meet the needs of many of New Zealand's SOHO market.

We can even develop and create one-off solutions for those with mobility or disability limitations opening up a world of freedom in communications. And we like to have fun on the journey.

Comfort Telecommunications

Smith Corona Headsets
3 year warranty compatible with all model phones. Accessories also available. Cords, earpads, etc all factory direct pricing



Headsets Connect

Since 1998, Headsets Connect has been supplying Call Center Grade corded phone headsets, wireless headsets, headset telephones and a wide range of headset accessories to accommodate Medical, Insurance, Financial offices and large Call Centers environments offering you value, comfort, flexibility and increased productivity in your day to day business.


Since 1998 Headsets123 has been supplying Call Center Grade corded phone headsets, wireless headsets, headset telephones and a wide range of headset accessories to accommodate Medical, Insurance, Financial offices and large Call Centers environments offering you value, comfort, flexibility and increased productivity in your day to day business.

Our offices are located just outside of Seattle, WA. We hope you enjoy our wide range of headsets and accessories.


Jabra is a leader in engineering communications and sound solutions – innovating to empower both consumers and businesses. We are committed to letting people hear more, do more, and be more than they ever thought possible. Through sound and video, we help transform lives. Jabra engineering excellence leads the way, building on 150 years of pioneering work. This allows us to create integrated headsets and communications tools that help professionals work more productively; wireless headphones and earbuds that let consumers better enjoy calls, music, and media; and pioneering video conferencing solutions, enabling seamless collaboration between distributed teams. Jabra employs approx. 1,400 people worldwide

JPL Telecom

Based in Dorset, England, JPL designs and manufactures innovative professional telecom headsets. We have a wide range of professional telecom and call centre use headsets in wired, wireless DECT and Bluetooth styles.

Making sure that your customer’s voice can be heard is vital. JPL Telecom ensures that your customer’s experience is first-class. All headsets have our Surround Shield™ noise cancellation to make certain your customer only hears what you want them to hear. Comfortable and attractively designed headsets are built to withstand the constant use in any call centre environment.

Our aim is to continuously improve customer choice, offering a fair price and value to our resellers and end users.

Leitner Headsets

Contact Center Headsets
Over one million North American businesses have purchased headsets from us in the past two decades – we understand headsets.

Leitner Headsets are the most durable contact center headsets backed by a 5 Year Warranty, giving you a best-in-class productivity tool that fits your needs (and your head). As the trusted experts, we make headsets simple to choose, and easy to use.

Unicom Services Ltd.

Contact center headsets and conference solutions
Unicom Services Ltd. is a distributor of professional headsets and communication solutions for all possible applications.

Products and Services:
* Headsets for contact center, office, small office and home, mobile phones, computer headsets and adapters.

* Conference systems - audio video terminals, personal and group multipoint conferences.

* Telecom Products - office wired and wireless phones, dect systems, softphones.

* Video conference software for contact centers and offices.

* Unified Communication Solution.

Xiamen Mairdi Electronic Technology Co., Ltd

Call Center Headsets
Mairdi is a professional call center headsets maker in China. We've designed, produced and exported professional communication headsets for 16 years. Our headsets were exported to over 120 countires in the world.
Our headsets are widely compatible with nearly all IP Phones, desk phones, PC and mobiles. They are all noise cancelling and with built-in hearing protection technology. Our headset accessories are Plantronics or Jabra compatible. All the headsets and accessories are CE,FCC, RoHS certificated.

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