Outsource, Insource, Offshore- Which is the way forward
Well its December 12th and I am in Atlanta. In town to meet with clients and prospects. It is a nicer day here than it would have been in Toronto.
had a meeting a financial services company this morning. They are working to determine a way forward to enhance their customer service delivered through there contact center. They are looking at familiar options: Outsource, In-source, off-shore. Today they operate with an outsourcer and have confirmed that they can save 45%+ in the contact handling fees by moving offshore they don’t yet have a handle on the organizational costs required to support this type of a move.
Research has demonstrated that companies that offshored to India expecting to save 30%, 40% even 50% of their costs actually netted savings closer to 12% once the organizational costs to support such offshore activities were factored in.
If the savings were only expected to be 12% how many of the companies that have offshored their call center & contact center activities would not have bothered? i suspect it would be the majority. Virtually every call center and contact center I have seen can achieve more than 12% savings without outsourcing or offshoring. This would eliminated the bad press, frustrated customers and reduced customer satisfaction scores that affect most companies that move their call centers or contact centers offshore.
With any luck we will have the opportunity to assist this organization chart its best path forward.