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Call Outsourcing  

Call Outsourcing

Companies worldwide have to respond to increased costs and efficiency pressures as the impact of the credit crunch is felt by both business and the consumer.

The trend towards off shoring has led the way in the global outsourcing industry for a number of years as a means of reducing cost and streamlining business operations. Business process outsourcing (BPO) - of which the call Centre industry is a major part of - is a 130 billion a year industry which, despite the economic turbulence, is still estimated to grow by approximately 50% over the next five years.

End users are now looking to find the right balance between the quality of the service required and the best location to fulfill these requirements.

The call Centre industry is a competitive market. With so many providers offering such a wide range of services and quality levels, organizations are now faced with a whole plethora of possible strategic partnerships.

The initial off shoring trend was focused on India. With Indian call Centre agents earning 80% less than average UK agents’ salaries, access to over 250 million English-speakers and a pool of 15 million Indian college graduates a year. The Indian economy presents an attractive alternative to the high prices of the call Centres located within the UK.

However, patterns in India today are replicating the UK call Centre industry earlier this decade. Soaring levels of staff attrition and rising prices mean that organizations are rethinking their offshore call Centre strategies. End users are now looking to find the right balance between the quality of the service required and the best location to fulfill these requirements.

Number crunching

The Philippines is continually increasing their market share in offering business process services. European and American banks as well as IT companies are increasingly looking to the Philippines as a serious option for back room and call Centre operations, due to the highly educated work force and excellent English-speaking skills.

South Africa has also emerged as a favored international location. The South African government has identified the industry as a key sector and is offering big tax breaks as well as training grants to companies who are considering transferring their business processes to the country. The South African culture is similar to that of Western Europe which allows for easier interaction between staff and the customer. Again, fluency in English is already established within major South African cities and the English accents are far more neutral than that of competing locations.

Once the number crunching has been done many organizations will still be very reluctant to bring processes back in house. The costs of doing so are too great and the savings being offered by off shoring destinations are too appealing.

However, although these emerging destinations have been enjoying a time of growth, the industry is certainly keeping an eye on the state of the world economy. Service providers rely heavily upon business from financial services. Banking, financial service and insurance are the sectors that provide the regular contracts to call Centre providers. Struggling British banks, which have accepted a government bailout package to recapitalize, may halt spending on new outsourcing contracts until the second quarter of 2009 and are under increased political pressure to move their offshore call Centres in India and other countries back home.

Politics may prove to be a worry for the industry. The US is the major contributor to call Centre provider revenues. Recent political campaigns have seen the outsourcing jobs at the top of the agenda.

Well, once the number crunching has been done many organizations will still be very reluctant to bring processes back in house. The costs of doing so are too great and the savings being offered by off shoring destinations are too appealing. Unless the US imposes hefty taxes on businesses that offshore (something that is being floated about as an idea) it is doubtful that it will take much of a hit, however, right now, it is till very much up for debate and no one can be too sure either way.

Currently, call Centre service providers can rest assured that current contracts will, most likely, be seen through to the end. Huge contract wins may be few and far between right now, however the industry still looks good for growth and should come through economic turbulence and political changes relatively unscathed.

Premiercallcentre.co.uk provides independent professional technical service, fully managed to help your call outsourcing needs. We are an expert in call handling services. Our staff are based in UK, are on hand to answer your call. We have proven track record in delivering a whole range of call handling.
 

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