Call Center Outsourcing: Offshore Or Onshore?

Posted by melanie on November 15, 2011 2 comments

Outsourcing offshore to other countries has been around for many decades. The main advantage is the cost, which is known to be far cheaper than outsourcing to a centre in the UK or USA. Ultimately, businesses choosing to outsource are looking to achieve long term cost savings, however, you should think carefully before outsourcing as making a decision based on price alone is not wise.

A recent survey indicated that 65% of customers, who were asked, didn’t care where their calls were handled, as long as the call was handled well.  So does it really matter where your call centre is based? The pros and cons of offshoring your call centre should be considered before making a decision.

Perhaps the biggest benefit of offshore call centres is the highly competitive pricing that most offer. These significant cost savings can directly affect the businesses bottom line and allow the business to achieve the savings required to grow as a company.. How much money there is to be saved varies depending on the country, but typically outsourcing to India or the Philippines can save a business between 50 and 60%.

The call centre industry, as a whole, has a higher than average staff turnover. A significant advantage of offshoring is the almost unlimited supply of labour available; meaning a fast replacement of staff when members of the team leave is possible. This means little or no disruption to the call centres capability to maintain high call handling numbers.

Offshoring is also an essential factor of globalisation. Countries that provide offshore services, such as call centres, have seen a real impact on their economy. Of course, the growth in economy cannot be put down solely to offshoring, but many argue that it is a key factor. Many of these countries also boast a high number of graduates, with good language skills and I.T skills, which mean highly trained professionals, are available.

Others argue that offshoring to another country enables a company to expand its reach geographically and therefore, again, allowing the business to grow.

However, of course there are also cons to be considered, the most obvious problem is the language barrier. Although a large number of offshore call centre workers have good language skills, can they be compared to that of an English speaking country? Communication is key when outsourcing to other countries but if the centre doesn’t understand you or your callers completely, then how can you ever get the service you need? In fact, critics in the U.S state that call centre outsourcing should be limited to countries where English is the native language.

A language barrier is one problem but you should also consider time zone differences. You need to both be able to communicate at the same working hours otherwise you will find that sending emails back and forth with delayed reactions and replies is not sufficient enough. On the other hand, these time zone differences can also work as an advantage, making a business contactable outside of normal hours which would not be possible in a call centre based locally without hiring agents to work 24 hours a day, costing more.

A local call centre can be easier to maintain a working relationship with. This is because you can communicate with them far easier and can even hold regular meetings in person. This allows you to establish with your call centre what you need from them and accurately portray what you expect from the outsourced centre. After all, the outsourced call centre is working for you and with you to achieve your business goals.

Regardless of critics, the offshore call centre outsourcing industry continues to grow year by year. Although miscommunications between offshore call centres are largely inevitable, it doesn’t have to be the deciding factor against off shoring.

Ultimately, offshoring your call centre is not for everyone. There are advantages and disadvantages to both options, deciding which is most suitable for your business by considering all factors is crucial.

Wrap-up

Posted by Sunil Reddy on October 24, 2011 None comments

‘Wrap-up’ is more commonly known as After Call Work (ACW) or Post Call Processing (PCP). In a call center, the term ‘Wrap-up’ would refer to the time spent by an agent to complete after call duties or work such as placing an order, updating a database, filling a form, making a follow up call, etc.
For more details on ‘Wrap-up’ in a call center, please refer to After Call Work (ACW)

Post Call Processing – PCP

Posted by Sunil Reddy on October 24, 2011 None comments

PCP is the same as After Call Work (AFW) and ‘Wrap-up’. In a call center, PCP refers to the time spent by an agent, after disconnecting a call, on processing the relevant information related to the call. This could involve filling up forms, updating a database or even making an outbound call. When an agent is in the PCP mode, he/she will not receive any calls as he/she will be considered ‘unavailable’.

For more details on Post Call Processing (PCP) in a call center, please see After Call Work (ACW)

After Call Work – ACW

Posted by Sunil Reddy on October 24, 2011 None comments

After Call Work or ACW is also know as Post Call Processing (PCP) and ‘Wrap-up’. In a call center, After Call Work refers to the work that an agent has to do immediately after disconnecting a call. This could be an inbound call or an outbound call. The work involved depends upon several aspects such as the business, department, sales, service, etc. But more often than not it involves simple tasks such as filling out forms, creating a summary of the call, updating a database, or in some cases, placing another outbound call (which might be necessary to complete the transaction). When an agent is in ACW mode, he is considered as ‘unavailable’ and will not receive any calls until he/she is done.

Computer Telephony Integration – CTI

Posted by Sunil Reddy on October 24, 2011 None comments

Computer Telephony Integration is also know as Computer-Telephone Integration. As the name suggests, CTI is a commonly used name for any technology which allows the communication or interaction between a telephone system and a computer. The CTI enables you to send and receive commands/ data to and from your telephone system via the host computer. In other words, it coordinates the data transfer between your telephone system and your computer.

In the case of a call center, the CTI is the technology used to connect the server to the telephone system in order to facilitate server based functionality such as Automatic Call Distribution or ACD, better Voice Recording functionality, etc.

Call center agents normally have an application open on their computers which displays certain details of the caller. These details pop up on the agent’s screen just as the call reaches the agent, saving valuable time for both the agent and the customer. This function is made possible by Computer Telephony Integration applications. The CTI enables us to capture the callers number (Automatic Number Identification), and lookup a database to pull out more information about the caller. Calls can also be automatically routed based on pre-set criteria for that caller (customer).

CTI also has the following benefits for call centers,

  • Automatic Dialing and also computer controlled dialing, otherwise known as preview dial. It also enables the usage of a Predictive dialer.
  • Complete phone controls via the computer. Controls such as call answer, call disconnect, hold, mute, call transfer, conference, etc can be triggered from the computer.
  • Allows call center agents to log into the system and control their agent state. For example: ready, busy, meeting, training, After Call Work (ACW) break, etc
  • Using the detailed data that comes from the CTI allows for much better call reporting than under normal circumstances.

Automatic Call Distributor – ACD

Posted by Sunil Reddy on October 24, 2011 1 comments

The Automatic Call Distributor (also know as Automatic Call Distribution) is a very useful telephone system. It is mostly used in offices with several departments (like customer support, technical support, legal, finance, etc) which have a large number of incoming calls. As the name suggests, the ACD automatically handles large incoming call volumes by distributing these calls to a specific group of terminals that agents use. The ACD is usually part of a Computer Telephony Integration (CTI) system.

To put it more simply, the ACD can be configured to direct specific calls to specific teams. For example: the Automatic Call Distributor will automatically distribute all calls related to finance to the finance team, all calls related to legal to the legal team and so on.

Automatic Call Distributors are particularly useful in a call center. Call centers obviously receive a ton of calls on a daily basis and without an ACD, it would be virtually impossible to handle such large call volumes. But call volumes and call distribution apart, the ACD has many other features that are useful to call centers. The most important of the lot is it’s ability to check which agent has been on idle for the longest period and direct the next call to that agent. This ensures that all the calls (workload) are routed to the agents equally and in a manner which allows all the agents to have some ‘breathing space’ after each call, which improves overall productivity.

The ACD can also be used to generate several reports that show various aspects of a call centers operations. For example- Call Volume. An ACD can generate a report that will show you what the total number of calls during the hour/day/week/month/months/year were, when the call volumes were the highest, when the call volumes were the lowest, how long customers stay on hold, how many calls were abandoned, etc. The call center management can use such reports to improve the performance of their call center.

The ACD system consists of both hardware and software. The hardware components are for the terminals switches and phonelines. The software is a set of rule based instructions. It is these instructions which tells the ACD how to route the incoming calls (routing strategy).

Call Center Outsourcing Tips for Small & Mid Sized Businesses

Posted by Sunil Reddy on October 13, 2011 5 comments

We all know how outsourcing can not only minimize expenses but also maximize profits. We all know how outsourcing can help us expand our businesses by taking a load off our mind. But how exactly do we get started with outsourcing?

Here are a few tips that will help you get started with outsourcing:

What can I outsource anyway?

Anything! That’s right, you can outsource nearly any part of your business. However, it is recommended that you outsource only the non core functions of your business. This way, you have more control of the direction that your business is taking. Here is a list of the most popular services that you can outsource:
Voice based services such as Sales, Marketing, Lead Generation, Customer Support, Technical Support, Appointment Setting, phone answering services, etc.
Non Voice services such as data entry, data conversion, billing, transcription services, legal services, financial services, photo editing, Customer Support and Technical Support via Chat and Email, SEO related services, etc.

How much will it cost?

This is a difficult question to answer because there is no one fixed price for outsourcing. It depends upon many factors like – what you are outsourcing, which country you are outsourcing it to, does it require skilled manpower? And many other factors. For example, in India:

  • Technical Support processes which require skilled manpower could cost between $10 – $20/hour/agent
  • Simpler tasks such as phone answering services, appointment setting, lead generation, telemarketing, basic customer service, etc. could cost between $4 – $15/hour/agent

Before you begin your search for call centers:

It is important to have clarity on what exactly it is that you plan on achieving by outsourcing. Giving the call center a set of clearly defined goals along with your expectations allows the call center to understand what it is that you are looking for. This enables the call center to put together a more effective and efficient program designed to cater to your specific needs, allowing you to not only minimize your expenses even further but also get the results you want. Besides, receiving amazing results about something that means absolutely nothing to your business is not only a waste of time and money, but also quite disappointing.

How do I find the right outsource partner?

There are thousands of call centers out there and finding the best one that suits your requirements and your budget is no easy task. However, once you have a clarity on the services that you are looking for, it does make the task a little bit easier.
If you require very little manpower (about 1 – 5 employees) to accomplish the task, you might find websites such as Elance.com very handy. However, if your requirements are more complex, you could either search Google for call centers in India and email all the call centers that suit your requirement or you could contact a professional BPO/ Outsource Consultant, who will first understand your requirements and then  provide you with a list of call centers that will suit your requirements.

A word of caution: Never make any upfront payments to any call centers or consultants. Those who ask for such payments are usually con-men.

For more info on Finding the right Outsourcing Provider, click here.

This way for outsourcing success

Outsourcing Success

How do I choose the right call center?

To successfully outsource a part of your business, it is vital that you find the right call center/ outsource partner. Working with an unprofessional call center could turn you outsourcing experience into a bitter one. Here are a few tips to avoid getting stuck with the wrong call center.

  • Stay away from call centers that do not have an online presence (website)
  • Ask the call center for references from previous clients
  • Interview the agents working on your process personally
  • Ask the call center to explain to you, how exactly they plan on meeting your requirements. Go ahead with the call center only when you are happy with their strategy
  • As much as possible try to work with call centers that are experienced in working on processes similar to the type you are looking to outsource. This way, you will get a better idea of what you can expect from the call center.
  • Ask the right questions: Click here for a list of Questions you must ask your call center before you outsource! These questions apply to both IT and BPO Outsourcing.

I hope you find this information helpful. If you have any more questions, feel free to email me or leave your questions in the comments below. I will do my best to answer them.

(For an Introduction to Business Process Outsourcing, click here)

The Benefits of Outsourcing your Call Center

Posted by Sunil Reddy on October 11, 2011 7 comments

The competition in today’s market is extremely fierce. Customers expect a lot more today than they ever did before and no company can afford to take the risk of providing scrimpy customer service. Adding call center services to your business is no exception. Now this is where the real question arises- Is it a good idea to invest the time, money and effort to build a call center in-house? Or would it be a better idea to Outsource?

It’s important to note that large corporations have the added advantage of availability of immediate resources. This gives them the option of choosing either of the above, in-house or outsourcing. However, a smaller or mid sized business often does not have access to that level of resources, which makes it much more difficult for small and mid sized companies to start an in-house call center.

Be it a large corporation or a small or mid sized business, before you decide which one is better for you, in-house or outsourcing, do consider the following benefits of Outsourcing:

The Time advantage of Outsourcing
Most businesses, large or small, often have customers in different time zones. That makes it difficult to offer assistance to all your customers at all times. This usually results in the loss of customer loyalty.
Call centers can offer 24/7 availability, offering your customers the assistance they need when they need it. Many customers prefer the comfort of knowing that help is just a phone call or click away, always.

Outsourcing allows you to focus on your core business
Starting an in-house call center for your business would mean you have to start a dedicated department. This means you will be burdened with the added task of recruitment, training and management of the department. This will redirect your resources from the core interests of your business.
However, when you choose to outsource, the call center will handle nearly everything involved for you, as per your specifications. You no longer have to worry or waste time on hassles such as staffing, scheduling, training, micro managing, etc.

Bring in the experts
Building a call center in-house and achieving the required level of skills of an acceptable service usually takes a very long time, sometimes, even a few years. You also have the added risk of losing customers in the process.
This can be avoided by outsourcing the process. Call centers commit all their resources into doing one task and doing it well. Call centers also have the added advantage of having years of experience in doing it. Which means, when you outsource, you have the benefit of providing your customers with high quality and competitive services from day one.

Don’t let the progress of Technology slow you down
Constructing a call center in-house would mean you also have to invest on infrastructure, hardware, equipment and software. This will not only be expensive but also time consuming since it requires a lot of planning, design and implementation. And with the progress of Technology, you will have to constantly upgrade your equipment to keep up with the competition.
However, when you Outsource, the technological advancements will prove to be an advantage to your business. Since call centers are dedicated to the sole task of providing the best services to your customers, they are usually equipped with the best infrastructure for the job and constantly upgrade their equipment to keep up with industry standards.

These are just a few of the many benefits of outsourcing your call center. If you have any questions or would like to know more about how outsourcing can benefit your business, feel free to leave your questions in the comments and I’ll do my best to assist you.

Finding An IT Outsourcing Job

Posted by admin on September 21, 2011 None comments

The internet has created creative business ideas and diverse markets, giving thousands of people the opportunity to thrive in the technology industry. It also provided people the chance to become their own bosses and gain financial independence.

While some people make actual, physical products to sell over the web, those with special skills offer their services via different IT outsourcing platforms. Internet IT outsourcing firms such as elance and guru have become popular places where customers find contractors to complete various jobs and projects. This is the newest spin of traditional IT outsourcing.

If you have certain skills and talents, such as programming, technical writing or internet marketing, you should give these internet IT outsourcing firms a try. IT outsourcing firms not only give you a place to showcase your experience and expertise to help someone else, they also provide you new ways to earn extra cash as a freelancer and become your own boss.

How internet IT outsourcing works

How does internet IT outsourcing work? Well, internet IT outsourcing works a lot like traditional IT outsourcing, except internet IT outsourcing is completely cyber-based and user-controlled.

Freelancers can add themselves to an internet IT outsourcing firm with their profiles, services, skills, education and other pertinent information. Employers can also add themselves to internet IT outsourcing firms with the available jobs they offer and the types of skill they need.

However, internet IT outsourcing firms do not have a middle man to match and submit qualified candidates to employers. Candidates log onto IT outsourcing sites they belong to and bid on the jobs themselves. The employer can then interview potential candidates via the same IT outsourcing site, and select the most qualified candidate.

When a candidate is chosen for an IT outsourcing job, he or she will have a set time to complete the job. Then, the candidate will be evaluated on his or her quality of work and overall professionalism by the employer. If the employer is happy with his or her work, then he or she will be paid via some electronic means. Most internet IT outsourcing firms use paypal.

The internet IT outsourcing firm then gets a percentage of the job’s overall charge.

Some internet IT outsourcing firms is free to join and grant freelancers a limited amount of bids for jobs. Most internet IT outsourcing firms, however, charge a monthly fee for a certain amount of bids. Elance, for example, offer up to 10 free bids, but charge a small fee for additional ones.

Internet IT outsourcing firms offer the opportunity for freelancers and employers to connect and exchange with each other without someone in the middle. By eliminating a staffing firm and physical office spaces, internet IT outsourcing firms operate more efficiently and less costly, giving freelancers and employers the freedom to work with or reject each other.

Advantages and disadvantages of internet IT outsourcing firms

Many freelancers, as well as employers, have succeeded on internet IT outsourcing firms. However, freelancing on an internet IT outsourcing firm is not for everyone, as IT outsourcing is a very specific and cumbersome business. While these web-based IT outsourcing companies offer many advantages, they have disadvantages as well.

One of internet IT outsourcing’s main advantages is that employers can reach a global talent pool. Freelancers from all over the world can apply to IT outsourcing companies with the hope to gain valuable experience and make money. Employers on internet IT outsourcing firms often receive a variety of bids on any job. From young college grads to experienced professionals to even established firms, employers have access to a variety of talents and have the chance to reach the best choice for their projects.

However, if you are a job seeker and live in a place where the standard of living is high, such as the United States or Canada, then you compete with talents from poorer countries who charge much less.

Also, employers from other countries can also sign up at internet IT outsourcing firms. Their jobs offer much lower compensation, and sometimes this leaves freelancers less opportunities to make desirable money.

Another advantage of internet IT outsourcing is that there is no middle man, so freelancers do not hassle with meeting recruiters and going through standard HR interviews. But any HR issues during IT outsourcing, such as unfair treatment or discrimination, must be dealt with by freelancers themselves. Although many internet IT outsourcing firms have dispute centers, freelancers must manage most of the disputes themselves.

Telecommuting is also hard to do. Jobs from internet IT outsourcing almost always require freelancers and employers to communicate through electronic means such as emails and conference calls, making their relationships very impersonal. If a problem arises, it can be hard for both parties to resolve it in a calm, friendly and unassuming manner.

Succeeding at internet IT Outsourcing

If you are a freelancer trying to find an IT outsourcing job, an internet IT outsourcing website is a good place to start with. There are a plethora of them available, and they all contain the same easy-to-use features.

Although it is not hard to apply at IT outsourcing websites, it does take skills and persistence to succeed on them. After all, becoming your own boss is like running a small business, even when it comes to IT outsourcing.

First, know what your skills are, what you are good at, and what your experience entails. Because employers cannot talk to you face-to-face on IT outsourcing websites, you need to emphasize your skills and elaborate on your experience. In other words, get noticed by employers by giving them exactly what they are looking for.

Second, take as many skills tests as possible. IT outsourcing web sites often offer standardized tests in different areas, such as writing and editing, programming or virtual assistance. Scoring high on these tests gives you credibility and gives employers confidence when they hire your service.

Another great feature of IT outsourcing websites is the ability to provide prototypes or portfolio work. Writers can include their previous writing, designers can add their sample graphic art, and developers can upload their code snippet. This creates a way for freelancers to display their abilities and show employers what they can do.

If you want to showcase your skills on IT outsourcing websites, do upload your best samples, as they will make you stand out and help you attract potential employers.

With the amount of world-wide talents out on IT outsourcing websites, new freelancers might have trouble getting recognition and start their careers in internet IT outsourcing. If you are completely new to internet IT outsourcing, you might not have the credibility to get hired. So, for starters, it might be wise to start with bids of lower compensation for just a couple of projects until you build up your reputation on a particular IT outsourcing website. Once you have gained raving reviews from previous clients, you can then charge the amount you deserve.

Lastly, always act professionally. Although you will never meet your clients on IT outsourcing websites, a job is still a job and requires your utmost attention and service. Just remember: even a client from an IT outsourcing website can hire you as a permanent employee, or give you recommendation for your next job.

Business Process Outsourcing – Intro

Posted by admin on September 20, 2011 1 comments

Outsourcing businesses processes can help a myriad of different companies focus on their core business without having to worry about back office tasks. This outsourcing goes a long way to help make many businesses more profitable and has explained the growling prevalence of Business Process outsourcing commonly known as BPO. BPO, or Business Process Outsourcing is ideal for non-critical applications and processes that can be easily done by outsourcing to a third party such as billing, adjusting claims, payroll, and accounts payable.

What are companies outsourcing?

Benefits administration is one area that companies have been outsourcing to BPO specialists for years. The outsourcing occurs to third party administrators and companies that provide health plans for the company in question as well as in many cases several other companies. Processes such as claims, medical management, and other pre-certification processes are often then outsourced by these companies to other third parties. This is commonplace in contemporary business and outsourcing has become increasingly more popular in recent years.

Contemporary Business Outsourcing

Recent trends have reported that just about everyone is starting to engage in BPO, or business process outsourcing and for a good reason. This is a decision that makes good sense for many businesses because it simply saves money and works financially. Streamlining one’s business helps to make it so a company can focus on the main aspects of a business instead of lesser business processes that are not essential to business. Dealing with a third party company insofar as it pertains to certain business processes makes for improved customer services, a savings in labor cost, and an overall increased profitability for anyone that chooses to outsource these processes. Another reason this has become more popular is that this is a big savings of money that simultaneously provides for customers the utmost of quality in their business processes.

Pros and Cons of Outsourcing

There are a number of experienced BP outsourcing companies out there that do nothing but the business processes for other companies. The foreign based ones are just as good as domestic companies because often times the money you pay them is worth more in their native country than yours. Because of this they are more highly motivated to provide the utmost in care when it comes not only to customer service but quality control. Foreign based companies are good for this purpose, but because of your native language not often being theirs there is always the potential language barrier. But, throughout time this has become much less of a problem than it may have been a decade ago. As many large companies are choosing to take advantage of BPO companies these companies are evolving to meet the needs of the companies outsourcing to them.

The Pros of outsourcing almost seem too good to be true at first. Think about the possibility of outsourcing processes that are easily done and getting more profitability from your company. This is the main thing that draws most people into the idea of outsourcing parts of their business. If you’re outsourcing something as simple as customer service or tech support it can be easy to check up on the company you’re working with. Testing if outsourcing is providing the desired results is as simple as calling them up and seeing how well they deal with you. Certain other Business Process Outsourcing is more difficult to check up on. But, it is definitely a good idea to check up on any process you’re outsourcing to ensure the utmost of quality.

Outsourcing is a double-edged sword and the Pros come with the potential of a few detrimental Cons. If the language barrier is too great you may risk causing problems with your customers. As a business the last thing you want to do is potentially lose customers. As long as the company you are outsourcing work to is friendly and efficient you will not have to worry about making customers angry just by outsourcing. In fact many of these cons may not be an issue if you simple outsource your company to a domestic vendor. There are many companies that deal with specific business outsourcing, such as medical coding for instance. You can many times pay professionals a comparable or in some cases less to more rapidly handle a large volume of work that a local employee may struggle with. Domestic outsourcing vendors often charge more, but outsourcing to them can cut down on the number of man hours you need to pay for and save you some money in the long run.

Finding Vendors

Finding vendors when it comes to outsourcing can be a difficult thing to pinpoint. This is because there are a countless number of companies out there that claim to be specialists in outsourcing. But, how do you know you are outsourcing your work to a company that can handle the workload and provide the service you need? The answer to this question is to simply do your research. Researching outsourcing options is a little bit more difficult than reading Hotel Review online. Finding an outsourcing company to handle all of your BPO needs not only consists of finding someone that claims to be able to handle your needs, but testing the validity of said outsourcing company’s claims.

Outsourcing Domestically

Outsourcing domestically is a good idea in some cases. Outsourcing business processes to companies that are not overseas with not save you as much money as many overseas outsourcing counterparts. However, with slightly more skilled BPO processes you may be glad you chose to outsource domestically. Outsourcing benefits and claims regarding benefits is one of the most common things for businesses to do. While it is true that many companies that have this type of work outsourced to them go on to outsource it themselves, but they are generally only outsourcing to specifically trained individuals. If you choose to cut out the middle man with outsourcing you may find yourself unable to ensure quality control and find yourself in a big mess.

Understanding Outsourcing

Understanding outsourcing is a good way to get ahead in business. As outsourcing becomes more commonplace it may be necessary to take advantage of outsourcing just to stay competitive. Though outsourcing is not necessary in all businesses it can be used to help supplement business and make a company more profitable. Outsourcing has been around for decades and with the advent of the internet outsourcing companies can put themselves out there more. This means not only is outsourcing tried and tested, but that outsourcing is readily available for anyone seeking to take advantage of Business Process Outsourcing.