Preparing to outsource.
When outsourcing a contact centre operation
for the first time, there are several steps that must be taken
to ensure success. A robust procurement and contracting process
When dealing with such an important decision
as outsourcing, you must understand clearly why you have chosen
to outsource, the benefits and the risks of doing so, the
available options and the financial models and implications
associated with the decision.
Research consistently reveals that the main
reason for outsourcing contact centre activity is to focus
on core competencies, reduce costs and improve quality and
It also shows that, where outsourcing did
not work successfully it was because the client organisation
outsourced for the wrong reason, for example:
• Failed to specify its requirements
clearly, resulting in inappropriate implementation based on
assumptions, not agreed facts.
• Did not allow the service provider
enough of a profit margin to enable it to provide an adequate
• Failed to give sufficiently skilled
management of the service provider, leading to an irreparable
emotional gulf between the two organisations.
In addition, many companies seeking to outsource
expect too much too soon. The cost savings from any outsourcing
contract are likely to be maximised over many years as processes
and operations are refined and improved. A good working relationship,
essential to optimise such savings, needs time to develop.
It is vital, therefore, that the company:
• Identify the parts of the business
that are non-core and thus appropriate to be outsourced.
• Establish robust reasons for outsourcing
and demonstrate the business case for it in order to understand
the fully loaded cost implications and return on investment.
• Evaluate total outsourcing against
other options for achieving your objectives.
• Define meaningful measures of success
and set realistic expectations of the outsourcing contract.
• Commit the appropriate level of experienced
resource to managing the outsource relationship.