Omni-channel customer experience value proposition
Omni-channel customer experience value proposition
Vice President of Research Sarah Burnett will be a key speaker at the May 10 conference hosted by Professional Outsourcing Magazine and Teleperformance: Can Your Business Afford Excellence?
The contact centre industry is more sophisticated than ever at its best. Personalisation, automation, and a more problem-solving approach are combining to make a better customer journey possible for anyone making contact with your organisation.
The difficulty is that the pressure is on to get costs reduced. The national living wage, the apprenticeship levy and just getting the right people into the job cost money. Outsourcing bodies and the clients need to work out how to re-engineer customer contact operations, taking advantage of automation and low cost locations, to ensure every stakeholder, and particularly the customer, ends up with the right deal. This event will focus on discussing the potential solutions to today’s challenges.
May 10, 2017
The Mayfair Hotel
London, W1J 8LT
Sarah Burnett, Research Vice President, Everest Group
Chris Sood-Nicholls, Managing Director and Head of Global Services, Lloyds Bank Commercial Banking
This is an invitation-only event
The topic of productivity differences in contact center locations has always been of interest to enterprises, GICs, and service providers. In the last few months, there has been a significant increase in firms’ interest in leveraging an integrated global delivery model across offshore, nearshore, and onshore locations for their contact center needs. In addition, the looming prospect of higher barriers to offshoring/nearshoring is also shifting focus from a labor arbitrage model to one of productivity gains.
Against this backdrop, Everest Group conducted targeted research to assess relative differences in contact center productivity across locations, using agent efficiency as a proxy for productivity.
Our research uncovered an interesting finding: while there are location-specific variations, agent productivity does not consistently vary by location category (i.e., onshore versus offshore/nearshore). While agent productivity is influenced by multiple factors, only two – average call handling time and agent utilization – are largely location-dependent. Even after normalizing for other factors such as nature of business, work mix, and scale of operations, there is no evidence to suggest that productivity is higher in onshore locations than in offshore/nearshore locations.
The reason that productivity variations are not location specific is that both average call handling time and agent utilization are, in turn, impacted by drivers that largely do not vary consistently across location category. For example, both scheduling efficiency and training effectiveness are influenced more by center-specific policies and work environment than location category. Thus, it’s the interplay of these and multiple other drivers, which often negate and counterbalance each other, that are the key contributors to productivity variations, not the locations themselves.
These findings have some important implications for firms:
For a detailed analysis of this topic, please see our viewpoint entitled “Are There Productivity Differences across Contact Center Locations?”
The average cost of a full-time business process outsourcing employee in the Philippines is about $19,300 a year, compared with $72,300 in the U.K. and $91,100 in the U.S., according to consulting firm Everest Group. The cost calculation includes salaries and expenses related to benefits, administration, facilities, technology and others. Read more at Bloomberg.
Contact Center Outsourcing (CCO) Market for the Healthcare Industry PEAK Matrix
The latest report of analyst firm Everest Group shows that call service providers are adopting advanced technology solutions for local services in response to the needs of modern business and in order to save costs by targeting improving customer satisfaction. Read more.
CCO investments in technology and staffing are centered on the growing customer need for an integrated digital experience.
Technology is the leading investment theme in the contact center outsourcing (CCO) industry, followed by scale. Enabler technologies accounted for about three-fourths of the reported investments in 2014-2015, with analytics, automation, and multi-channel tools being the major areas of investments, according to new research from Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing.
“Contact centers across the world are moving into the digital era with a focus on enhanced customer experience in a multi-channel environment,” said Katrina Menzigian, vice president at Everest Group. “Service providers are responding by shifting their value proposition from the traditional, FTE-based focus on cost containment and implementation to an emphasis on providing insights and innovation to enhance the customer experience.”
Another aspect of the CCO market marking a notable increase in 2015 was onshoring activity, as buyers increased their focus on improving service quality and demonstrated a preference for agents located close to customers. In 2015, the percentage of CCO contracts with significant onshore delivery rose to 53 percent, as compared to 35 percent in 2010 and 49 percent in 2013. This trend also has led to the growth in adoption of a work-at-home agents model, which incurs lower operational costs than onshore full-time-equivalents (FTEs).
Otherwise, movements in the market were modest in scale. Experiencing a period of transition, the global CCO market grew at a rate of 4 percent in 2015 to reach US$75-78 billion. The global contact center spend stands at US$300-320 billion, of which third-party outsourcing accounts for approximately 25 percent.
These findings and more are discussed in “Contact Center Outsourcing Annual Report 2016: The Rise of Digital Contact Centers – Clear Evidence that Real Change is Underway.”
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The increased adoption of automation in CCO enables service providers to achieve balance cost and customer satisfaction
As enterprises shift their focus from pure cost savings to improved customer service, the CCO delivery mix has been shifted to a balanced onshore/offshore model
Changes in end-customer preferences are driving changes in the CCO value proposition around delivery process excellence, building digital capabilities, and enhancing business value/outcomes.