Does outsourcing help or hinder business strategy?
Outsourcing company Sitel is predicting one third of travel company call centres will be outsourced by the first quarter of the next financial year.
The forecast comes as the company experiences increased demand from travel businesses looking at ways to reduce operating costs while maintaining or clawing back call booking volumes during the current recession.
Sitel business development director for the travel sector Ray McDiarmid says many traditional travel companies have high fixed costs tied up in owned call centres, and in many cases have yet to realise the benefits of outsourcing. Its current clients include Iberia, Air Berlin, Continental Airlines, Travelocity, Expedia and Park Resorts.
He says: “There is an unprecedented level of urgency in outsourcing now, and a lot of businesses are under pressure to reduce costs. Travel companies are carrying excess in-house cost and it is eroding their profitability.”
The company claims to be able to reduce call-centre costs by around 20% and improve revenues by 10%-15% and points at the ability for firms to manage their workforce in line with the seasonal nature of holiday bookings more effectively.
Based on a company employing 300 full-time employees, Sitel says a call centre can cost an operator £6.8 million a year, including premises’ costs. This equates to a cost of £11.66 per hour or £22,741 per annum for each full-time employee or equivalent.
