Contact Center Solutions Featured Article

Outsourcing Forms Critical Lever for Integrated Services Model

June 26, 2014

A new study by independent outsourcing industry analyst firm, HfS Research, finds that one in four buyers are reinvesting heavily in their global shared services operations, with seven out of ten continuing to make investments in their outsourcing delivery.

The report finds that firms increasing their focus on both the outsourcing and shared services models has been consistent over the past several years, as large enterprises are moving more work to their internal shared services centers, while outsourcing investment grows at a slower, more moderate pace. 

Organizations in the U.S. are spending more than $1.1 billion annually on contact center services, with approximately 78 percent of the spending costs used on in-house operations, leaving $219 million spent on outsourcing. 

The steady growth of outsourcing is a reflection of the improved business value being delivered by the service provider community and the challenges and difficulty that clients face when attempting to build their own global services delivery capabilities, according to the report.

Growing complexity and the weak economy combine to produce a bright spot for contact center operators: conditions are favorable for outsourcing buyers. High internal operating cost and less than optimal agent productivity at many companies may turn the tide in favor of outsourcing, and the economic slowdown is helping the service providers’ performance as attrition rates are improving dramatically.

The integrated services model is going to force providers to evolve their capabilities if they plan on sticking around for the long term, before their clients can trust them to take them on.

The research study concludes that ignoring the current problem is going to fail for many, and transforming the global operations model into an integrated range of services, underpinned by cloud-based platforms and plug-and-play digital capabilities, is the Promised Land clients yearn to find for their organizations.

The International Data Corporation forecasts that U.S. spending for on-demand cloud contact center services will grow at a compound annual growth rate of 17.5 percent to $1.6 billion in 2018.




Edited by Allison Sansone

Article comments powered by Disqus

Related Contact Center Solutions Articles

Contact Center Solutions Week in Review: Interactive Intelligence, BT and Accenture

The future is now, or at least it is coming at us fast in the Contact Center Solutions Community, and there are two great ways to be part of the industry buzz as to what is unlikely to unfold in 2015. The first is to attend ITEXPO East, January 27-30, 2014 at the Miami Beach Convention center. This is a great opportunity to be warm and more to the point, hear, see and discuss contact center issues in person with peers and subject matter experts. [ Read More ]
01/17/2015

Customer Experience: The Last True Differentiator

In Ernst & Young's Global Consumer Banking Survey 2014, customers chose "the way I am treated" as the second most important reason for trusting their banking provider, just behind the understandably important "financial stability" of their bank. Customer experience was also cited as the most common reason for opening and closing accounts, more important than fees, rates, locations or convenience. Approximately 40 percent of customers planned to open or close an account in 2014. This means banks … [ Read More ]
01/16/2015

Digital Is Driving Businesses to Offer Personal and Intuitive Customer Experiences says Accenture Report

The preoccupation with improving the customer experience (CX) by C-levels around the world has been a trend for several years. In fact, the fastest growing C-level position is Customer Experience Management Officer (CEMO) or some variation on the title. And, as CX becomes ever more important as the means to provide differentiated value, delighting existing customers and for obtaining and keeping new ones, the preoccupation will not only grow more intense in 2015, but so will the investments in t… [ Read More ]
01/16/2015

BT Launches New Personalized Video Message Service

When it comes to contact center out-reach there are two trends that everyone needs to literally and figuratively keep an eye on in 2015. They are "personalization" and "video." And, while the first may seem obvious since the goal of marketers is to make customers and prospects feel appreciated with tailored messages uniquely for them, the use of video on the outbound side of things is after many years becoming something more than a novelty. [ Read More ]
01/15/2015
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!