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Burcin Gunes
Senior Learning and Development Manager
Endy Pandu Winata
Senior Officer Customer Voice Management

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 - Answering Customers’ Questions

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

Published: Wednesday, May 4, 2016

Printer Friendly Version Printer friendly version

2023 Buyers Guide Speech Technology

Premium Listing
Call Center Studio

Call Center Studio
Call Center Studio is the world’s first call center built on Google and is one of the most secure and stable systems with some of the industry’s best reporting. It is one of the most full-featured enterprise grade systems (with the most calling features, one of the best call distribution, outbound dialing features and integrations—including IVR, AI Speech Recognition, blended inbound/outbound calling and includes Google’s new Dialogflow and Speech API. Call Center Studio is the absolute easiest to use (with a 10 minute setup), and is the price performance leader with lower equipment cost and less setup time.


VoiSentry is a voice biometric engine for speaker verification / identification. It is delivered as a virtual instance to be controlled by an application via APIs and can be deployed in whatever is the most appropriate environment i.e. public cloud, private cloud or on-premise. It is generally deployed as a white-label or OEM product, whereby Aculab’s partner integrates it into their own solution/platform and offers it as an integral part of their service. Unless they go public with it, none of their clients would even know that it was Aculab’s VoiSentry engine under the hood. As with any biometric speaker verification system, VoiSentry is language and dialect independent.

3.) Agara

Agara is an autonomous virtual voice agent powered by Real-time Voice AI. It is designed to have intelligent conversations with your customers, vendors, and partners without any assistance from human agents. It can handle a wide variety of calls including inbound customer care calls, outbound lead generation calls, appointment scheduling calls, and overdue payment recovery calls.

Agara is available for several industries including banking, insurance, retail, e-commerce, airlines, and telecom. Powered by advanced Real-time Voice AI that understands speech in real-time, automatically determines the right process to follow and guides the caller along in the process with natural conversation.

Call Tracking Metrics

Execute automated actions based on words spoken by your customer.

Our intelligent word detection and transcription tools make it easier for you to decipher the content of your customer conversations and automate action based on those insights.

Transform the audio of your calls into speaker-organized scripts so you can easily search your call log for specific words from a conversation, or automatically detect when words of intent are spoken by your customer.

Listen in on and highlight common patterns in order to execute triggers to initiate a new action or workflow, such as emailing a manager if the word “cancel” is spoken on a call. You can also set up to automatically redact content from a transcript, such as sensitive health information transmitted on a call.


Daisee builds technology that empowers people to solve problems by making interactions simple and smart so they can have a more significant impact, be more productive and be better at what they do. We believe incremental improvements carry huge potency and provide exponentially greater change for the better.

Genesys customers can now automate risk and quality management using Daisee’s speech and sentiment analytics and remediation workflow software. Daisee helps improve customer experience, ensure regulatory compliance, identify missed commercial opportunities & training requirements as well as provide valuable insights back to the business directly from the frontline – the true voice-of-...
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Advanced speech recognition and natural language expertise that routes callers by simply asking ‘how can I help you?’. It allows customers to use their own words to ask for what they want and steers them to the right place.

Menus are eliminated altogether and contact centres can use a single inbound telephone number.

MattsenKumar LLC

SmartSpeech – The Best In Class Speech Analytics Software

An all-inclusive speech analytics application that enables you to visualize your audio using state-of-the-art speech recognition, transcription, and text analytics technologies.


V-Blaze Speech to Text
Our GPU-accelerated, AI-based technology enables you to deliver greater insights to the contact center by transcribing audio into analyzable text.

- Transcribe large volumes of recorded audio quickly
- Integrate transcripts with your analytics or business intelligence platform
- Reduce your hardware footprint and minimize total cost of ownership


InTone Suite - Emotion Detection via Voice Analysis
InTone™ is a voice analysis tool geared to detect genuine emotional and cognitive reactions regardless of the speaker’s language or chosen intonation.
It integrates into existing contact center environments and provides realtime indications of both client and agent emotional reactions throughout all ongoing calls. This unique set of indications assists managers and call center representatives to truly understand the client, improve call center performance, easily detect angry calls, elevate training efficiency and provide a tailored customer experience in every single call.

Nemesysco's contact center technology is also available in API and SDK forms.
Please visit our website for information about our product portfolio.


Voxjar is your one-stop-shop for driving better phone calls with your customers. We're a modern Conversation Analytics and Call Coaching Platform.

- Custom Charts and Dashboards give you the freedom to analyze calls from the highest level down to the details of each conversation.

- AI-Powered Speech Analytics transcribes, searches, and analyzes your reps' phone conversations, at scale.

- Quality Assurance and Call Coaching tools let you evaluate and improve agent performance with a human touch.

- Long term recording storage for historical analysis

All of these together provide the holistic, easy-to-use software that you need to manage a modern call team and create better con...
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