Though business outsourcing in general has become a popular practice, when it comes to outsourcing call centers or telemarketing service from foreign companies, managers of corporate firms need to think carefully before making a decision.
It may seem prudent for a US company or a Canadian firm to contract a company in India, Malaysia, China, Philippines or Singapore to provide customer services or for telemarketing. But other factors may make such a decision not a good one in which case an on-shore option will be better. The only way a good decision can be made is by carefully considering the basic advantages and disadvantages of off-shore outsourcing of call centers services.
Generally, the main advantage of contracting foreign firms especially those from the Asia Pacific region to provide call center service is the relatively low cost. It costs less to operate a call center service from Asian countries like India, Malaysia or Singapore. For profit maximisation, it may be beneficial for US companies to contract a company in an Asian country to provide customer service on the phone. In a July 6, 2006, article titled, “The Advantages and Disadvantages of Using Offshore and Onshore Telemarketing Call Centers,” published by Quote Catcher.com, a telemarketing services provider, it was pointed out that an off-shore provider often costs only 25% of what the same service would cost in the U.S. or Canada.
Besides the fiscal befits, contracting a foreign company can help a firm save on time and effort. The hiring firm also saves all the efforts required in managing call center agents and equipment. Another noted advantage of off-shore call center outsourcing is the opportunity of having quality service delivery from well-trained agents. As observed by 24/7 customer, a customer service company, Asian countries have quality call center firms. Indian call centers are particularly known for efficient service delivery.
Despite the advantage of having quality service at a relatively low cost, language deficiency among foreign call center agents can get customers angry and thus have a negative impact on the fortunes of the firm that is paying the foreign firm for the service. A call center agent or telemarketer in India may be fluent in the English language but a difference in accent could get a customer in the US wondering whether he or she is dealing with the right agent of a US company.
Hiring foreign companies for services that could be provided by local companies may have a negative impact on the corporate image of the hiring firm. This is especially the case with bigger firms that have national presence and are expected to put in a lot by way of corporate social responsibility. For some people the failure of bigger firms to use the services of local telephony firms could mean sabotaging the growth of local businesses. Larger firms that hire foreign firms for call center services may thus have public relations difficulties.
Though it may be generally good for companies to outsource call center services from foreign countries for the benefits of cheap labour and quality call center technology, it is important to also consider potential disadvantages such negative corporate image that may arise from using call agents with language difficulties.
Call Centers have become a popular marketing tool. This is because if they are handled by highly skilled and professional agents or operators, every inbound call from a customer is an opportunity to increase the customer base of an organisation. Providing customer service through automated telephone service centers also make it possible for an organisation to reach out to prospective customers through outbound calls. Above all, they provide an excellent opportunity for meeting customer needs. Meeting the challenges of modern marketing, therefore, requires an effective use of technology-based automated telephony systems by businesses.
Prospective business organisations seeking to use call center services to boost their business may do so by choosing one of two options. The first option is the setting up of an organisation’s personalised service center. This option requires the acquisition of equipments and technology which will include some automated computer software. It will also involve the hiring of skilled personnel to operate the center. The second option is the utilization of a professional call center outsourcing company. This second option is considered to be relatively cost-effective and more companies are outsourcing some customer information services.
Within ten years, India has become a major hub of call center outsourcing facilities. As reported in the June 12 Indian Times, 2003 article "Indian Call Centre Industry Attrition Highest in Apac" findings from a study conducted by the Australian-based Callcentres.net showed that India was at the top of the call center industry in the Asia pacific region. At the time, Indian automated telephony customer centers accoutered for 22 percent of all such operations in the region compared to 19 percent for Singapore, 18 percent for Malaysia, 13 percent for the Philippines and China with 10 percent.
According to Ennovate Group Inc, a call center service and customer relationship firm, current statistics show that India's call center industry accounts for almost a quarter of all software and services exports from the country. It is estimated that close to 1.5 million people are employed in the information technology-based outsourcing industry. The value of the industry is also estimated at $2 billion.
The growth of the Indian the telephony outsourcing sector is mainly due the growing trend of what has become known as offshore outsourcing of such services. In order to meet the growing competitive demand for cost-effective, customer-oriented services, many European and American companies are now outsourcing their call center services by either setting up such centers in India or hiring offshore outsource firms in that country. India is thus reaping the benefits of offshore outsourcing.
The following are some of the reasons why India has become the global hub of outsourcing in the telephony customer service industry:
A booming telecommunications industry.
High quality service that meet international standards.
The use of state of the art information technology industry for service delivery.
Presence of cost-effective manpower. Labour cost is relatively cheaper in India than in UK or US and for that matter, service charges are lower and estimated to be a quarter of how much the same service will cost in the UK, US or Canada.
Availability of a large educated, English-speaking and technologically skilled labour force.
It may seem prudent for a US company or a Canadian firm to contract a company in India, Malaysia, China, Philippines or Singapore to provide customer services or for telemarketing. But other factors may make such a decision not a good one in which case an on-shore option will be better. The only way a good decision can be made is by carefully considering the basic advantages and disadvantages of off-shore outsourcing of call centers services.
Advantages of Off-Shore Call Center Outsourcing
Generally, the main advantage of contracting foreign firms especially those from the Asia Pacific region to provide call center service is the relatively low cost. It costs less to operate a call center service from Asian countries like India, Malaysia or Singapore. For profit maximisation, it may be beneficial for US companies to contract a company in an Asian country to provide customer service on the phone. In a July 6, 2006, article titled, “The Advantages and Disadvantages of Using Offshore and Onshore Telemarketing Call Centers,” published by Quote Catcher.com, a telemarketing services provider, it was pointed out that an off-shore provider often costs only 25% of what the same service would cost in the U.S. or Canada.
Besides the fiscal befits, contracting a foreign company can help a firm save on time and effort. The hiring firm also saves all the efforts required in managing call center agents and equipment. Another noted advantage of off-shore call center outsourcing is the opportunity of having quality service delivery from well-trained agents. As observed by 24/7 customer, a customer service company, Asian countries have quality call center firms. Indian call centers are particularly known for efficient service delivery.
Disadvantages of Off-Shore Customer Service Outsourcing
Despite the advantage of having quality service at a relatively low cost, language deficiency among foreign call center agents can get customers angry and thus have a negative impact on the fortunes of the firm that is paying the foreign firm for the service. A call center agent or telemarketer in India may be fluent in the English language but a difference in accent could get a customer in the US wondering whether he or she is dealing with the right agent of a US company.
Hiring foreign companies for services that could be provided by local companies may have a negative impact on the corporate image of the hiring firm. This is especially the case with bigger firms that have national presence and are expected to put in a lot by way of corporate social responsibility. For some people the failure of bigger firms to use the services of local telephony firms could mean sabotaging the growth of local businesses. Larger firms that hire foreign firms for call center services may thus have public relations difficulties.
Though it may be generally good for companies to outsource call center services from foreign countries for the benefits of cheap labour and quality call center technology, it is important to also consider potential disadvantages such negative corporate image that may arise from using call agents with language difficulties.
Why Businesses Outsource Indian Call Centers
Call Centers have become a popular marketing tool. This is because if they are handled by highly skilled and professional agents or operators, every inbound call from a customer is an opportunity to increase the customer base of an organisation. Providing customer service through automated telephone service centers also make it possible for an organisation to reach out to prospective customers through outbound calls. Above all, they provide an excellent opportunity for meeting customer needs. Meeting the challenges of modern marketing, therefore, requires an effective use of technology-based automated telephony systems by businesses.
Options for Proving Call Center Services
Prospective business organisations seeking to use call center services to boost their business may do so by choosing one of two options. The first option is the setting up of an organisation’s personalised service center. This option requires the acquisition of equipments and technology which will include some automated computer software. It will also involve the hiring of skilled personnel to operate the center. The second option is the utilization of a professional call center outsourcing company. This second option is considered to be relatively cost-effective and more companies are outsourcing some customer information services.
Booming Indian Call Center Outsourcing Industry
Within ten years, India has become a major hub of call center outsourcing facilities. As reported in the June 12 Indian Times, 2003 article "Indian Call Centre Industry Attrition Highest in Apac" findings from a study conducted by the Australian-based Callcentres.net showed that India was at the top of the call center industry in the Asia pacific region. At the time, Indian automated telephony customer centers accoutered for 22 percent of all such operations in the region compared to 19 percent for Singapore, 18 percent for Malaysia, 13 percent for the Philippines and China with 10 percent.
According to Ennovate Group Inc, a call center service and customer relationship firm, current statistics show that India's call center industry accounts for almost a quarter of all software and services exports from the country. It is estimated that close to 1.5 million people are employed in the information technology-based outsourcing industry. The value of the industry is also estimated at $2 billion.
Benefits of Offshore Outsourcing
The growth of the Indian the telephony outsourcing sector is mainly due the growing trend of what has become known as offshore outsourcing of such services. In order to meet the growing competitive demand for cost-effective, customer-oriented services, many European and American companies are now outsourcing their call center services by either setting up such centers in India or hiring offshore outsource firms in that country. India is thus reaping the benefits of offshore outsourcing.
Why India Has Become Call Center Outsourcing Hub
The following are some of the reasons why India has become the global hub of outsourcing in the telephony customer service industry:
A booming telecommunications industry.
High quality service that meet international standards.
The use of state of the art information technology industry for service delivery.
Presence of cost-effective manpower. Labour cost is relatively cheaper in India than in UK or US and for that matter, service charges are lower and estimated to be a quarter of how much the same service will cost in the UK, US or Canada.
Availability of a large educated, English-speaking and technologically skilled labour force.
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