5 Ways Outsourcers Can Gain a Competitive Advantage in 2011

In an already competitive and crowded marketplace, organizations today are continuously seeking ways to lower operating costs and increase revenues. The landscape has changed dramatically in the past decade. Organizations  are closely scrutinized by regulators and consumers who have high expectations from outsourced partners and 3^rd party vendors. In the wake of  the global financial crisis that has negatively impacted some of the world’s leading economies, organizations are starting to revisit their strategy, in terms of outsourcing contact center contracts, and demanding more than just cost savings. This mindset is now creating concerns among outsourcers and 3^rd party vendors, who can no longer attract and maintain their customer base just on the basis of their ability to provide a cost savings advantage.

The role of the contact center has undergone a dramatic shift from that of a cost center to that of a profit and value center. In light of this new pressure to provide greater value, outsourcers are now responding to their clients’ raised expectations by implementing increasingly complex solutions.   Despite the proliferation of e-commerce and digital technology, one fundamental principle remains consistent: Outsourcers are key strategic partners for organizations to deliver value by focusing their operations on attracting, fulfilling and retaining high value and loyal customers. As a result, the fragile relationship in which the outsourced operation manages its entire resources is critical to the client and their customer base. Outsourcers are beginning to recognize the positive correlation between customer experience, employee engagement and increased revenues, even in a stagnant condition within the economy.

Today's unpredictable, volatile and increasingly competitive economic climate continues to add to the pressure to decrease costs and increase revenues while simultaneously delivering higher than normal levels of customer service. Following are five ways for outsourcers to reduce contact center operational costs while at the same time “delighting” clients with superior levels of service. Think of each recommendation as an idea worthy of consideration and capable of standing on its own merit, yet part of an overall strategy addressing the optimal performance of the contact center.

1) Make agent attrition rates a KPI – The management of retention in an outsourced contact center has the most significant impact on payroll costs and profitability. While HR may be generally involved with the recruitment, selection and hiring of staff, the key driver in agent satisfaction lies in the knowledge and capability of their line managers. High performing outsourced operations invest in the training and development of their team leaders and supervisors to ensure that they have the necessary tools and resources to support agents. As a result, high performing outsourced contact centers build scorecards and other intervention tools to ensure that the overall strategic goals of the contact center are met.

2) Ensure that you're measuring the metrics that really matter – It is crucial to select meaningful and effective metrics necessary to enhance performance that lead to customer satisfaction. It is important to maintain the discipline of reviewing these metrics using a rigorous methodology that is adopted across all levels of the contact center and links desired behaviors necessary to meet organizational objectives. A sample list of metrics for outsourced operations should be reviewed as business needs change and fluctuate. Typically high performing providers link their operational objectives to their clients and review these over Business Review Meetings and Quarterly Reviews for alignment.

3) Eliminate guess work by implementing real-time reports, tickers and scorecards – Outsourced operations that implement rigorous, regular performance scorecards and analysis consistently outperform mediocre centers due to their speed and reaction time advantage. Weekly or daily historical reporting in a dynamic, ever-changing environment is neither effective nor efficient for the purpose of determining the tactics needed to address a particular situation where calls spike unexpectedly. If managers receive real-time reports on the performance of their operations by agent group or skill, they are able to rapidly make strategic decisions without impacting service levels. Often, these tactics are overlooked and end up costing contact centers more money than they had forecasted. Avoid red flags and those repeated frantic calls from clients by being proactive to daily operational issues with real-time information and data.

4) Tighten the span of control between Managers and Agents – Numerous surveys and a great deal of research point to the fact that, due to costs, outsourced operations are guilty of having an unusually high number of agents relative to the line managers. One of the reasons that agents quit is the level of contact or the lack of coaching or leadership they receive from their line manager.. Typically for optimal performance the span of control should be between 1:10 or 1:15 to generate the desired results within a contact center.

5) Automate e-Learning, coaching and virtual classroom training – The emergence of the internet and the proliferation of innovative electronic learning and coaching courses have enabled high performance outsourced centers to bring training to the agent desktop during low call volume moments.  Team leaders and supervisors can also use quiet time to enroll in critical mandatory modules for compliance and product or process knowledge. This can create enormous opportunities for contact center training teams to focus and deliver other mission-critical courses and modules that require classroom training during those scarce resource hours. The combination of these methods will drive down costs while at the same time increase proficiency of agents while building a training team that is highly effective.

When implemented properly, each of these ideas offers the potential to deliver anywhere from a small benefit in a short period of time to much larger benefits over a period of a year. While any one idea may provide some short-term savings, the effort to optimize the performance of the contact center is best undertaken within the context of a continuous improvement program with regular reviews of all the components of the solution prescribed for the contact center.