Smart Criteria for Selecting a Contact Center Outsourcing Provider

Smart Criteria for Selecting a Contact Center Outsourcing Provider

Michael DeSalles, Senior Analyst

Contact Centers

Sarah Saatzer, Associate,

Corporate Communications

September 28, 2010

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Today’s Presenters

Sarah SaatzerAssociate , Corporate CommunicationsFrost & Sullivan

Michael DeSallesSenior Analyst , Contact CentersFrost & Sullivan

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Focus Points

Frost & Sullivan Contact Center Outsourcing End-user Survey

Opportunities and Challenges in Customer Care Outsourcing

S.M.A.R.T. Selection Criteria

Conclusions and Recommendations

4

2010 North America Contact Center Outsourcing End-user Survey

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Survey Demographics

12%

7%

11%

7%

6%

4%

6%16%

21%

Financial ServicesCommunicationsTravel & HospitalityHealthcareRetail & ConsumerGovernment & EducationOutsourcingManufacturing/DistributionInsurance ServicesOther Professional ServicesITEducationUtilityOther

Primary IndustriesPrimary Industries

Globally10

28%

15%

16%

41%

10-99

100-499

500-999

More than 1,000

Size of Contact Center Organization by Number of Seats

Size of Contact Center Organization by Number of Seats

Reporting note: Due to rounding, percentages in tables, etc. may not equal 100%. Results based on sample sizes less than 50 should be considered directional, not actionable.

Research Methodology: Web-based survey conducted in April 2010

Sample Size: 311

Respondents: Contact Center decision makers

Region: North America

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Survey Demographics (Cont’d)

91%

55%

50%

42%

34%

32%

2%

64%

CustomerService

Help desk

Tech support

Order entry /processing

Employeeservices

Collections

Telemarketing

Other

Functions Supported by Contact CentersFunctions Supported by Contact Centers Languages Supported in Call CentersLanguages Supported in Call Centers

19%

16%

14%

10%

8%

2%

100%

61%

English

Spanish

French

German

Italian

Portuguese

Asian

Other

Note: Multiple mention question Note: Multiple mention question

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Priority of Ensuring Consistent Customer Experience Across All Channels

Q: How high of a priority is ensuring consistent customer experience across all channels for your organization?

Priority of Ensuring Consistent Customer Experiences Across All Channels

36%

9%

21%

31%

7 - Very High Priority

6

5

4

3

2

1 - Not-at-all-a-Priority

Source: Frost & Sullivan

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Customer ForumsFacebook

YouTubeGoogle

Twitter

Blogs

MySpace

Customer Interaction Channels

Web

Email

Telephone Text/SMS

Video

Chat

Customer Interaction Channels

Social Media

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Proportion of Customer Care Outsourced

QA. What proportion of your customer care organization is currently outsourced versus retained in-house (based on number of seats/agents)?

QB. Two (2) years from now, what proportion of your customer care organization is likely to be outsourced versus retained in-house (based on number of seats/agents)?

23%

27%

24%

26%

22%

32%

24%

29%

20%

20%

24%

27%

Current Outsourced %

Likely Outsourced % 2 Years from now

Total Sample Financial Services Communications Retail and Consumer Healthcare Others

Total Financial Communications Retail and Healthcare Others Sample Services Consumer

Proportion of Customer Care Outsourced


Comments: Companies in the Communications vertical expect the highest increase in outsourcing over the next two years, followed by Retail and Consumer. Surprisingly, Healthcare companies did not indicate any plans to increase outsourcing in the next two years.

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Number of Contact Center Outsourcers Used

29%

12%

17%

15%

27%

One

Two

Three

Four or More

Don't know


Number of Outsourcers Used

Q: How many contact center outsourcers do you use?

Comments: Of companies that outsource customer care, most engage two or more outsourcers.

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Location of Outsourced Agents – by Industry Vertical


Location of Outsourced Agents

62% 54% 59% 73%

6%

6%

9%

16%

2%

10%

10%

21%

57%

15%

6%

12%

13% 20%

5%

5%

10%

1%

4%

8%

14%

7%

6%

8%

14%

65%USA

India

CALA

Philippines

Other

Q: What proportion of your outsourced agents are based in the following locations?


Comments: While most outsourced agents are based in the US, offshore agents represents a fairly significant proportion of outsourced agents. Among offshore locations, India represents the highest proportion, followed by CALA, and then the Philippines. Other mostly represents Canada. Healthcare companies have the highest proportion of US based agents compared to other industry verticals, while Communications has the highest proportion of offshore agents.

Note: Percentages may not add up to 100% due to rounding.

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Expected Change in Outsourced Agent Location – % Respondents that said Increase


37%

30%

27%

26%

22%

20%

24%

26%

34%

17%

17%

14%

41%

42%

31%

36%

23%

36%

25%

25%

18%

16%

24%

16%

52%

31%

21%

20%

25%

23%

54%

31%

25%

32%

22%

18%

USA - Home based agents

USA - Traditional call centers

India

Philippines

CALA

Other


Comments: Among all locations for outsourced agents, home-based agents is expected to have the highest increase, particularly in the Healthcare vertical. The Communications vertical is expected to see increases in outsourced agents across all locations – both domestic and offshore. Financial Services expects its highest increase in outsourced agents from India. Most of the outsourced agent growth in the Philippines is expected from the Communications vertical.

Q: Do you expect that in the next two years your proportion of outsourced agents will increase, stay the same, or decrease in the following countries/regions – % of Respondents that said Increase

Note: Multiple mention question

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Factors of Importance in Outsourcer Selection by Industry

Factors of Importance For Outsourcer Selection - Mean Scores

5.6 5.6

5.2

5.7 5.85.6

5.5

5.8

5.5

5.8

5.55.7

5.4

5.7

5.1

5.95.8

6.0 6.1

5.9

5.6

6.05.9 5.9 5.9

5.85.6

5.9

5.65.4

5.6 5.5 5.6 5.6

5.2

5.7

5.45.5

5.15.3 5.3 5.2

5.55.6

3.9

6.1

5.6 5.6

5.1

6.1

5.85.7

5.1

5.65.7

5.45.3

5.1

4.7

5.6 5.7

5.4

4.7

5.6 5.6 5.6

5.0

5.4

5.0

5.2

3.5

4.0

4.5

5.0

5.5

6.0

6.5Retail & Consumer Financial Services Communications Healthcare Others

Rating Scale Anchors: 1=Not-at-all Important, 7=Very Important

Q: Please rate how important each of these factors are for outsourcer selection. Scale: 1=Not-at-all Important, 7=Very Important

Note: Others includes Travel & Hospitality, Hi-Tech, Govt. & Education, Utilities, Industrial, etc.

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Contact Center OutsourcingOpportunities and Challenges

2010 End User Survey ResultsNorth America

Contact Center Outsourcing

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Reduce Service and Support Costs

Increase CustomerLoyalty

Protect and Enhance Brand

BusinessOpportunit

yIncrease SalesGain Access to Expert

Skills and Knowledge

Improve Customer Service

Business Opportunities – Customer Care Outsourcing

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Potentially Lower Quality

Decreased QualityControl

Brand Erosion

Challenges Security ConcernsReduced Control of the Contact Center Operation

Difficulties in Training New Agents

Business Challenges – Customer Care Outsourcing

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S.M.A.R.T Criteria

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S.M.A.R.T. Criteria

S. StrategicM. MeasurableA. AccountableR. ReputationT. Timetable

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S.M.A.R.T. Criteria

Strategic

ScaleService/SalesSecurity

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S.M.A.R.T. Criteria

Measurable

MetricsMonitorManagement

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S.M.A.R.T. Criteria

Accountable

AgentsAutomationAnalytics

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S.M.A.R.T. Criteria

Reputation

ReliabilityROIResponsiveness

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S.M.A.R.T. Criteria

Timetable

TCO TechnologyTermination

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A PROVEN TRACK RECORD OF SUCCESS

Security Certifications Functional Expertise Expertise in my Vertical Multilingual Capabilities Performance based Pricing Advanced Technologies Support for Automation/Self-service

Key Takeaways and Considerations

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A PROVEN TRACK RECORD OF SUCCESS

Hosted Contact Center Capability Domestic Footprint SLA and KPI Adherence Lowest Cost Provider Home Agent Support Social Media Support Offshore Footprint

Key Takeaways and Considerations

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Domain Expertise Operational Excellence

Innovative Management Strong Financial Performance

Technologies & Process Improvements

RECOMMENDATION

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Next Steps

Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ([email protected]) 1-877-GoFrost (1-877-463-7678)

Register for the next Chairman’s Series on Growth: Driving Innovation-The

What, Why and How (October 5th) (http://www.frost.com/growth)

Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities(www.frost.com/news)

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For Additional Information

Michael DeSallesSenior Analyst – Contact Centers(210) [email protected]

Sarah SaatzerCorporate Communications(210) [email protected]

Ashwin IyerGlobal Program Director(210) [email protected]

Smart Criteria for Selecting a Contact Center Outsourcing Provider

Business

Transcript of Smart Criteria for Selecting a Contact Center Outsourcing Provider