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

Case Study: A Web-based Forecasting Solution for Sizeable Contact Centers

Technological advances over the past decade have led to an explosion of data. Companies across all industries are working hard to learn how to harness this data to improve their business operations and run more efficiently. This is the same story for the contact center solutions community - using data effectively can help with workload management and staffing optimization. The case study below demonstrates how two companies, Fourworkx and Shinetech Software, worked together to move workforce man… [ Read More ]
10/24/2014

Westpac Relies on Teradata Insights to Enhance Customer Experience

Australian bank Westpac selects Teradata solutions to get better insights for improving customer experience. [ Read More ]
10/24/2014

No Missing Links with Interactive Intelligence Lync Integration

There can be little denying that the Holy Grail for enhancing customer experiences is to absolutely ensure that the right people have the right tools at the right time to efficiently and effectively respond to customers in real-time. This is the reason so much attention and investment by vendors and their customers alike is being placed on omni-channel capabilities. [ Read More ]
10/24/2014

FCC Issues Report on April 911 Outage

911 service are one of those things that people expect to be there when they need it. An outage in April of this year knocked out 911 service to 11 million people, and the Federal Communications Commission has released a damning report, according to Threatpost. [ Read More ]
10/23/2014