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First-Time Outsourcing Buyer? What Many Executives Fail To Consider

by Michael Mills, SVP, Call Center Solutions, CGS - April 26, 2017

First-time outsourcing buyer? What many executives fail to consider
By Michael Mills, SVP, Call Center Solutions, CGS
 
An organization’s ability to deliver a consistent level of quality customer service is essential to its survival in today’s competitive market, yet delivering it can be an ongoing challenge. Some of the key facilitators of change resulting in challenges within an organization’s customer service support models include the release of new product offerings and global expansion.  Furthermore, as senior executives are evaluating short-term or long-term corporate strategies to maintain their market share in the industry, any time taken away from addressing customer needs and core issues can be detrimental to achieving business success. Because of this, we are seeing more and more organizations turn to business process outsourcing (BPO) to complement their customer service objectives while aiding in customer and employee services – from multi-language proficiency to more complex technical skills, so that the organization itself can focus on business growth and core business initiatives.
 
While outsourcing has been around for decades, first-time BPO buyers may be unfamiliar with the types of outsourcing services available or how to choose the best partner to accommodate their needs. These first-generation buyers have never been through the process of selecting a partner, and may not realize the full range of benefits when selecting the right outsourced services. Oftentimes, a company may neglect to look past cost-savings for the qualities that will ensure the best results and long-term success.
 
Looking beyond the dollar signs
Many organizations see BPO as a way to reduce costs associated with customer service and technical support or back office functions, such as transactions and data entry. While cost savings can be a benefit, low cost does not necessarily equate to quality service. Although BPO buyers should include costs when factoring outsourcing services, first and foremost, they must ensure that the outsourcing partner’s staff skill set meets their organizations’ requirements and their customers’ needs.
 
A company’s requirements can range from regulatory compliance and language proficiency and comprehension to prerequisite experience in a particular industry. In seeking the right service provider, organizations should pursue a consultative partner that supports seamless transition and process integration and awareness of cultural norms within their markets. An outsourcing partner should naturally feel like an extension of the company’s end users of which they are supporting.
 
Another crucial element when choosing an outsourcing partner is establishing that there is an integrated workforce management team as well as onsite training teams. The hiring and recruiting process is critical to identifying, screening and retaining the most qualified candidates. The presence of onsite training teams and a train-the-trainer approach ensures that there is a detailed training plan at the onset of training, and remedial training when required as part of a continuous process improvement program. The more comprehensive the training, the more consistent the performance and service delivery to the end user. Whether an organization enters a new market, takes on a new offering or implements new technology, it’s imperative for the partner to align its training to move along with the company’s growth. In the end, the level of performance from an outsourcing partner is only as good as its people.
 
One example of comprehensive training comes from hands-on training with products. This enables agents to obtain the knowledge needed to walk a customer through a product issue, such as troubleshooting a cable box or resetting the latest tablet with step-by-step guidance. This type of best-in-class customer service, supported by agent training, can help attain a happy customer and, in turn, a returning customer.
 
Differentiating service models
First-time BPO buyers may be surprised by the wide-range of service models available. There are traditionally work-at-home and contact center-based models from which to choose. The contact center-based model has several advantages over home-based workers. One critical benefit of contact center-based models, data security, has skyrocketed in importance within today’s cybersecurity landscape. This is because contact center-based models offer the organization a much greater level of protection, ensuring that any customer or employee data that is being handled will be kept within an onsite, supervised facility that is using a dedicated or private network. This type of security is especially important for regulated industries that handle personal information, such as in the healthcare field (HIPPA) where patient information may be shared. Additionally, onsite and network-ensured security is crucial for industries where exchange of sensitive information (e.g., payments, social security number and bank account information) must be secured.  
                                                                                                                                        
Organizations looking to outsource transaction-focused work to a call center should ensure the provider follows compliance for the Payment Card Industry Data Security Standard (PCI DSS). It’s often difficult to determine if agents working from home are adhering to these specific security and compliance requirements. For example, mobile devices with photo-taking capabilities are restricted in PCI-compliant facilities – a factor that’s impossible to control with a work-at-home based model.
 
An additional service model differentiator to keep in mind is the type of employees the outsourcing partner is recruiting and hiring. Are they employing badged (W-2) full-time agents? Or, will they be relying on temporary or subcontracted labor? Outsourcing partners that hire full-time, badged and dedicated support team members have higher retention and customer satisfaction rates compared to shared support or at-home models. Teams with veteran workers can easily embrace a brand identity over time and utilize experience consistently as they work with the organization. Veteran workers can also support and showcase the comradery needed to create a close-knit team, giving advice, tips and best practices to support team development.
 
Keeping up with growth: The ability to scale
While a BPO engagement may start with the support of one business process, one language or one time zone, it’s important to look for an outsourcing partner that can scale with enhanced flexibility to align with an organization’s growth. If a business chooses to expand to a new market, does the outsourcing partner have the ability to recruit and hire employees with the language proficiencies needed? Will the outsource provider have an understanding of that local culture? Does the partner have locations and infrastructure available to support customers in multiple global time zones? With these considerations in mind, before choosing an outsourcing partner, the organization must ensure the partner’s capabilities align with its own strategic roadmap and long-term business plans. If an outsourcing partner cannot quickly scale along with the company’s planned growth – the partnership will not be successful.
 

Today’s executives, with multifaceted roles and responsibilities, want to be certain that customer experience and service is handled efficiently and effectively with the right BPO partner, while being able to focus on mission-critical business goals. Whether a first-time BPO buyer, or a company looking to change partners, it’s imperative to look beyond simple cost-savings, and also consider process maturity, standardization, and consolidation/integration as additional considerations to outsource with a partner that will align with a company’s long-term business and financial objectives.   

 
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