Contact Center Solutions Featured Article

Philippine Contact Centers Transitioning from Cost Centers to Profit Centers

August 25, 2008

As companies throughout the United States and the United Kingdom continued to look outside of domestic offerings for contact center operations, the opportunities in areas such as India, South Africa and the Philippines continue to grow. While India continues to dominate the global contact center industry, the Philippines is quickly becoming a strong competitor.

This growth in the Philippine area is helping to create a different trend – one that transforms these contact centers from cost centers to profit centers. This trend is in direct response to the customers’ continued efforts to outsource higher-value services, according to research completed by callcentres.net. 

At present, the Philippine contact center market has roughly 130,000 seats. Growth is expected to reach close to 25 percent over the next 12 months. The data from this research also indicates that further offshoring activities or migration of contact center jobs from the U.S.

"The Philippines has a larger proportion of profit centers," said William Dieu, senior research analyst for callcentres.net at the Call Center Association of the Philippines (CCAP) conference. "There is a larger proportion of call centers here that have up-selling and cross-selling opportunities, and we expect that to increase in the next few years."

The transition from a cost center to a profit center is a strategic move for any contact center as it alleviates the burden of the cost of customer support and instead allows the contact center to have the opportunity to generate new sources of revenue and support its own operations.

For many contact centers, the transition from cost center to profit center is not any easy one and is not a move that should be done lightly. The requirements and activities of a profit sale can differ greatly from that of a cost center, one that is focused simply on inbound customer resolution and basic information provision.

A profit-based contact center can only be successful if its agents are trained and skilled enough to handle the sales portion of the call. These agents must be able to transition from an information-based call to one that is centered on completing a sale. This involves up-selling and cross-selling activities that not all contact center agents are qualified to handle.

Introducing sales into the contact center can spell new revenue sources for the organization and can turn the cost center into a profit center, if the transition is handled correctly. With a strategic focus that keeps the ultimate goal in mind, the profit center can maximize its potential in the market to offer a more attractive choice for investors.
 
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 Managing Application Performance by Understanding Applications, brought to you by Shunra (News - Alert) Virtual Enterprise.

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.

Edited by Tim Gray

Article comments powered by Disqus

Related Contact Center Solutions Articles

Contact Center Solutions Week in Review

As the wealth of news and insights in the Contact Center Solutions Community attests this week what is typically called "The Dog Days of Summer," in the Northern Hemisphere is a mischaracterization. There was plenty to report on to say the least. [ Read More ]
08/23/2014

Interactive Intelligence Foundation to Raise Funds for At-risk Youth

Interactive Intelligence Foundation fund raiser for at-risk youth to feature IndyCar driver Ed Carpenter. [ Read More ]
08/22/2014

Australian Consumers Vent more online about Poor Customer Experiences

Australian consumers are more inclined to express their customer service views online than those in UK and US. [ Read More ]
08/22/2014

Interactive Intelligence Campaign Donates Over 500 Goats to Impoverished Communities

In late 2011, customer experience solutions provider Interactive Intelligence launched a very interesting campaign to get executives to speak with their sales people. In conjunction with international charity Oxfam, if you met with Interactive Intelligence, Oxfam would donate a goat to a needy family in an impoverished community in one of the many developing world countries where it operates. [ Read More ]
08/21/2014