Contact Center Solutions Featured Article

Quality Still a Key Driver in BPO Selection

April 18, 2008

The topic of offshore outsourcing or business process outsourcing (BPO) gets a lot of attention when we start to experience an economic slowdown. While U.S. companies are searching for ways to trim fat, outsourcers are stepping up marketing initiatives to tout their money-saving solutions that can accommodate budget-stressed companies.

While outsourcing itself is a concept built on saving money, increased competition in the global BPO market has made the option even more attractive for those U.S. companies seeking lower cost alternatives to doing business. A new report from industry research firm IDC (News - Alert) reveals that this phenomenon is set to continue into the near future.

According to IDC, the competition for BPO is no longer concentrated in one or two hotspots. Instead, the industry is becoming increasingly competitive with strong players emerging throughout the world. In the firm’s latest report, 36 outsourcing players spread around the world were profiled and all are competing on a global level.

Datamonitor has also examined this trend in BPO. In a new report, Business Trends: Knowing Your Contact Center Outsourcing Customer, respondents were asked to choose from a list of countries those they would or would not consider outsourcing to in order to better assess what companies are looking for when seeking to outsource.

Those popular spots listed in Datamonitor’s report included: Chile, Hungary, Mexico, Panama, Poland, and South Africa. While many locations gain in popularity simply due to their proximity to major Western locations, many closer-to-home locations can be pricey, yet delivery quality.

While both reports examine the current strength of India as a primary BPO location, both acknowledge that the country may be losing its leading edge. According to the IDC report, some Indian BPO’s are raising prices due to the inflation of the rupee. Other outsourcers in other locations may take advantage of this change to undercut price, but companies should be leery of such tactics as they may get what they pay for — cheap.

Another phenomenon in the contact center industry is that of homeshoring. This rapidly growing complement to offshore and nearshore contact centers is emerging not only in North America, but around the world.

While there is significant opportunity in this area of the market, it is still very new and the majority of companies are not using work-at-home-agents. In fact, data shows that only 40 percent of North American respondents have even considered such a strategy.

At the end of the day, regardless of the location and even price, quality is still the key differentiator for companies seeking BPO providers. For those that skimp on quality, the ramifications will be swift and obvious as customers flee to better serving companies. Such a price to pay negates any savings the company was hoping to achieve. As competition continues to intensify throughout the world, quality will drive success.

Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
 

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Best Practices for Implementing a First Contact Resolution Program in the Contact Center brought to you by Enkata.

Article comments powered by Disqus

Related Contact Center Solutions Articles

Sound Telecom Points out the Benefits of Multilingual Answering Service

One of the consequences of globalization is the homogenization of the world, which is responsible for companies delivering the same service in locations as diverse as South Africa and New Zealand. Another is accessibility to talent, so companies in Silicon Valley can hire engineers and computer scientists from India and elsewhere. This has resulted in the influx of foreigners in the vast majority of metropolitan cities around the world giving rise to multilingual communities. [ Read More ]
09/29/2014

Contact Center Solutions Week in Review: Capgemini on Shopper Journeys and Role of Social Media

A good way to characterize this week in the Contact Center Solutions Community is that there was a lot of sage advice to be gleaned. We also saw a projection as to how significant the cloud would be on contact center transformations and the fact that even Apple had its contact center a bit over-whelmed thanks to demand for the new iPhone 6s. [ Read More ]
09/27/2014

Contact Solutions Presents My:Time Customer Service Portal

Customers are not only demanding from their businesses that their brands offer multi-channel customer support experiences, they are also demanding that those experiences be fluid, and any deviation, anything the breaks up that user experience into unwanted pieces, can tarnish brands in their customers' minds. [ Read More ]
09/26/2014

Capgemini Report Finds Digital Consumer Engagement is Important and Growing, Questions Role of Social Media in Shopper Journeys

There is a constant drumbeat in support of omni-channel experiences when it comes to retailers looking to use the latest technology to seamlessly integrate the physical and virtual worlds to provide shoppers more compelling experiences. This is certainly an inexorable trend, but according to the release of the second edition of consulting firm Capgemini global report on such matters, "Digital Shopper Relevancy Report", there are some surprises that retailers literally and figuratively need to ta… [ Read More ]
09/26/2014
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!