Outsourcing can boost call centre profits

May 29, 2008
Companies can reduce the cost of their call centres, while improving their revenue, through outsourcing or offshoring work, according to a discussion paper by management consulting firm AT Kearney.

The key is to get the right mix of in-house and outsourced calls, and then work with those outsourced providers to increase their revenue performance, argues the paper, Call Centres Can be Profit Centres.

A disproportionately small number of calls are high-value and should therefore be kept in house, said AT Kearney in a statement.

"The key is identifying these thigh-value calls, because the remainder are candidates for onshore and offshore outsourcing," said AT Kearney principal Adam Dixon."Sales calls generate profits while service calls can be costly."

Companies can also ensure the work that is outsourced generates more revenue by negotiating the right contracts under which the vendor will hire people, said AT Kearney. "If you want sales, you must hire sales people," said Mr Dixon.

One of the key advantages with an offshore call centre in a low-cost region, is that money spent on direct incentives to vendor agents goes a lot further than at home, said AT Kearney.

"Offshore agents’ salaries are five to six times lower than for those onshore, so a relatively small investment in direct payments can positively influence their behaviour," said Mr Dixon.

Source : http://www.businessspectator.com.au/

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