Outsourcing Contact Center to Offshore Destinations Experiencing Growth

Contrary to popular research that suggests that organizations are bringing contact centers back home, outsourcing contact center work to offshore destinations is in a rapid growth phase. One notable difference is the change in the location preference as emerging markets are becoming more competitive.

While it is true that many organizations have found offshore outsourcing to be contrary to their strategic goals, others have found that it offers significant benefits, including lower costs, better access to educated labor pools and ease of operations.

Key delivery centers for contact center outsourcing include such locations as India, the Philippines, and central and Eastern Europe which are experience annual growth in excess of 30 percent.

Everest Research Institute released the findings of a recent study that suggest that while the global contact center outsourcing market has grown to a US$55 billion, traditional contact center outsourcing has reached a mature phase and is showing signs of an impending growth plateau.

"The value proposition for buyers of contact center outsourcing services is demonstrating early indications of shifting from a cost savings-focused approach to an integrated approach across cost, quality and efficiency," said Everest's Amiya Kagalwala in a company statement.

"Offshoring continues to grow aggressively in key geographic locations (India, Philippines, central and eastern Europe), while areas in Central and South America and the Caribbean are emerging as smaller-scale hubs," Kagalwala added.

According to the study, Eastern Europe has risen to be a low-cost alternative for European buyers given language skills and proximity. For the Philippines, it has become a key destination for English voice-based work for the United States.

One of the dynamics that is driving this growth is that while exceptional customer service is a key priority for consumers in certain industries, it is not as high a priority in others. For instance, the banking industry deals with different service demands than the retail industry.

Different consumers in different industries have also proven to have varying tolerance levels for dealing with overseas contact centers. A key element that can contribute to the satisfaction of the experience can be whether or not the customer is calling just for information or to resolve a problem.

Organizations can do a lot to promote acceptance and a positive perception of their contact centers. By implementing integrated applications, empowering agents to resolve issues and offering self-service options, these organizations can drive customer satisfaction, while also reducing the overall cost of operations.

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.

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