Tag: CCO

Can Your Business Afford Excellence? — May 10 | Event

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.

When
May 10, 2017

Where
The Mayfair Hotel
Stratton St
London, W1J 8LT

Speakers
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

Are There Productivity Differences Across Contact Center Locations? Yes, But … | Sherpas in Blue Shirts

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.

Exhibit 1: Assessment framework for agent productivity in contact centers

Contact Center Outsourcing
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.

Exhibit 2: Variation in location-dependent factors that impact agent productivity in contact centers

Contact Center Outsourcing
These findings have some important implications for firms:

  • It is important to focus more on internal levers to improve productivity within individual contact center operations. Factors such as call volume, business cyclicality, skillset availability, and the firm’s overall policies and practices influence productivity more than location-dependent factors
  • Furthermore, global work placement decisions need to incorporate multiple factors beyond productivity, including delivery cost , talent scalability, business/client preferences, and business/operating risks
  • Finally, it is important to recognize that no single metric is sufficient to fully capture productivity. Rather, a holistic assessment that incorporates both efficiency and effectiveness (quality) and both agent and technology-enabled metrics is required

For a detailed analysis of this topic, please see our viewpoint entitled “Are There Productivity Differences across Contact Center Locations?”

Technology Investments, Onshoring On the Rise in Contact Center Outsourcing | Press Release

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.”

*** Download Complimentary, Publication-Quality Graphics Here ***

High-resolution graphics illustrating key takeaways from this research can be included in news coverage, with attribution to Everest Group.  Graphics include:

  • The benefits of automation in CCO
  • Digital initiatives changing CCO fundamentals
  • Why the CCO market continues to grow, but at a slower pace
  • CCO and the rise of onshore delivery

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