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Return To CRM Article Archive   Outsourcing Evolving into Strategic Management Tool for Contact Centers By International Customer Management Institute (ICMI) More organizations are turning to outsourcing partners to fill workload gaps and manage customer contact overflow. ANNAPOLIS, MD (June 12, 2006)--Today, the contact center is widely recognized as the organizations most critical customer touchpoint. Consequently, most companies are reluctant to hand over their entire contact center operations to an outsourcer. In fact, according to a recent survey by the International Customer Management Institute (ICMI), most contact centers that opt to outsource are doing so on a smaller scale, using the outsourcer as a strategic extension of their own centers to help fill in gaps, handle overflow, and expand services, hours of operation and/or channel options. Of the 279 contact centers surveyed, three in 10 (29.4%) said that they currently outsource customer contacts to an outside agency/service bureau. Very few centers, however, rely on their outsourcer to handle all or most of the contact volume: 42.9% of responding centers outsource up to 20% of the customer contacts the company receives; 19% outsource 41% to 60% of total volume; 17.5% outsource 61% to 80% of contacts; and 12.7% outsource 21% to 40% of the workload. Only 7.9% of respondents reported using an outsourcer to handle most or all (81% to 100%) of the customer contacts received by the company. Following are a few key findings from ICMIs 2006 Contact Center Outsourcing Report: The vast majority of responding centers that outsource use an agency located in North America, with 71.4% using a U.S.-based outsourcer and 19% using a Canadian-based one. The other most common outsourcer locations reported include India (25.4%), Far East Asia (11.1%) and Central America (6.3%). The most common types of customer contacts outsourced by respondents include: 1. Basic request contacts (30.2%) 2. Overflow contacts (25.4%) 3. After-hours/weekend contacts (25.4%) 4. Foreign language contacts (14.3%) 5. Contacts resulting from special promotions (12.7%) The top five outsourcing benefits cited by respondents include: 1. Lower operating costs (33% said they have experienced this 'in moderation'; 21% have experienced it 'in abundance.') 2. Expanded hours (29% in moderation; 21% in abundance) 3. Better handling of peak traffic (27% in moderation; 22% in abundance) 4. Improved staffing flexibility (24% in moderation; 19% in abundance 5. Higher productivity (30% in moderation; 10% in abundance) ICMIs 2006 Contact Center Outsourcing Report includes articles about outsourcing benefits, alternatives and factors for success; common challenges and difficulties of global outsourcing; and guidelines for 'backsourcing' services when an arrangement isnt working out. The report may be purchased directly from ICMIs Call Center Knowledge Online site (www.icmi.com/ccko). The report is available for free to ICMI members; the cost is $24.95 for non-members. ICMIs Call Center Knowledge Online, launched in 2003, is an online resource center that provides call center professionals with 24-hour access to downloadable documents--such as Call Center Management Review article bundles, ICMI research studies, tutorials, checklists and book excerpts--from the industrys definitive source of call center knowledge. About the International Customer Management Institute (ICMI) The International Customer Management Institute (ICMI) is a global leader providing the call center (contact center, help desk) industry with consulting, training, publications, events and professional membership services. ICMIs mission is to help individuals and organizations improve operational performance, attain superior business results and increase the strategic value of their customer contact services. Through uncompromised objectivity, a passion to discover and further the best solutions and management practices available, and a commitment to fostering a worldwide community of professionals, ICMI has earned the trust of organizations around the world. For more information about ICMI, visit www.icmi.com, or call 800.672.6177 (410.267.0700). About the Author: The International Customer Management Institute (ICMI) is a global leader in call center consulting, training, publications, events and membership services. [If the situation provides enough space, also add the following:] ICMIs mission is to help individuals and organizations improve operational performance and increase the strategic value of their customer contact services. For more information, please visit www.icmi.com. keywords: CRM | Customer Relationship Management | Customer Service | Call Center Call Center Conference Demo

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