A Glance at Call Center Outsourcing

  • July 31, 2011
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Call center outsourcing now happens to be one of the most successful and effective ways corporations can boost their cost effectiveness. By outsourcing most of their call center opeartions to much lower cost destinations, GE, American Express, Sprint, AOL, and Amazon and many other Fortune 500 companies have increased cost effectiveness dramatically by up to about 50 percent! Moreover, the quality of their support to their customers and contentedness has been increased as well. After witnessing the success of these businesses, many other corporations have been inspireed to follow.

The reasons behind their success? Lower labor costs, a bountiful and highly talented work force, and advancing offshore abilities by service providers in offshore destinations.

In call centers serving in North Amercia and Europe, labor costs are said to be holding the largest portion of expenses concerning operations. While in offshore locations, labor costs are much lower, nearly 10- 20 percent of what it is found chiefly in the US. Thus, operating expenses are much more evenly circulated to labor, systems and telecommunications, and real estate and utilities. For some of these companies, the savings have been phenomenally increasing by up to as much as $250 million every year.

Still in North America and Europe, most call centers employ just high school graduates. Thus, these employees often lack commitment and motivation, as you can see in the high attrition rates, nearly 40 percent or higher. In offshore, however, call centers hire no other than university graduates from the large pools of highly skilled labor. For these people, being a call center professional is not only a temporary job, but also a career they look up to.

Services. The variety of services being provided by these offshore call centers are going up. Back then, there was no complicated transaction oriented work such as back-office processing. Now, however, the multinationals have seen the overwhelming potential of offshore service providers as they have observed tremendous success and this confidence has become a greater number of services being provided and an improving complexity in interaction.

The Offshore Advantage. Companies in North America and Europe now understand that it is definitely much cheaper outsourcing call center business to offshore destinations, especially on their cheaper labor and IT skills. And exposure to competition is getting more and more companies and industries to allocate customer service in the limelight.

Some of the most popular offshoring segments include Insurance, HR, And Finance and Accounting services. Insurance is reportedly estimated to have a $23-30 billion market in 2007. HR, by 2008, will be nearly a $44 billion market and F&A almost $17 billion.

Now the thing is, offshore agents can manage the same situations compared to their counterparts in other nations. They are said to have the skills, the motivation, and is highly qualified, and so the success of these multinationals over the past decade is clearly evident.

http://www.practicaloutsourcing.com/HTML/Knowledge.html

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