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

Gubagoo Optimizes its Chat Platform for Mobile

Gubagoo is enabling dealers to track and target customers that visit their website through a smartphone or a tablet. [ Read More ]
04/22/2014

Wisconsin Making Call Center Business Worthwhile for SPI Global

The call center business market is one that has been getting all the more popular over the last few months. That has never been more obvious in Madison, Wis., where the state has just announced it will be giving a Philippines-based outsourcing company more than half a million dollars in order to expand a local call center. In exchange for incentives that will total $575,000 the company has said it will add as many as 286 jobs over the next three years. [ Read More ]
04/21/2014

Intelecom Launches New Version of Connect

Intelecom Group AS, a provider of contact centre solutions, recently announced that it has added a new set of feature in the newer version of Connect, its multichannel cloud based contact centre solution. The new features will help the clients monitor, manage and control the contact centre online and from within a single interface. [ Read More ]
04/21/2014

BenchmarkPortal Reveals the 2014 Top 100 Call Centers Contest Winners

For those of you in the contact center solutions industry, BenchmarkPortal should be a familiar name. If the name does not resonate, the company has carved out an impressive niche in the international contact center community, with vendors and contact center administrators, as a recognized analytics and consultative resource. As the name implies, it benchmarks almost every imaginable activity relating to contact centers and uses the knowledge gained from evaluation of key performance indicators … [ Read More ]
04/21/2014