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One, Customer, Easy CALL CENTER GROUP
Global Call Centers
Is the World Flat?
What does outsourcing mean for me?
Can we compete in a global economy?
One, Customer, Easy CALL CENTER GROUP
Global Call Centers
Sharon Pettigrew
Principal
Call Center Group
March 21, 2006Women in Telecommunications
One, Customer, Easy
CALL CENTER GROUP© Call Center Group 2006.
Agenda
Market trends and drivers for global contact centers
Technology trends driving innovative services
Guidelines for Successful Outsourcing
Emerging Trends in Contact Centers & Outsourcing
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CALL CENTER GROUP© Call Center Group 2006.
The World is FlatPEOPLE, PROCESS & TECHNOLOGYPEOPLE, PROCESS & TECHNOLOGY
CALL CENTER BUILDING BLOCKS
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CALL CENTER GROUP© Call Center Group 2006.
Answer these questions:
Why are call centers changing so quickly?
What is outsourcing?Why do companies employ this
strategy?What technology trends are there
with outsourcing?What is the future ? - statistics on
trends, cost savings, efficiency
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CALL CENTER GROUP© Call Center Group 2006.
Trends in Contact Centers
PEOPLE Outsourcing Off-Shore Centers Intelligent Routing Customer Value Based Service Integrated View of Customer throughout
lifecycle
PROCESS Multi-Channel Services Customer Self Service Options
TECHNOLOGY Customer – 360 degree view Seamless Integration is Goal Collaboration & “One Customer” Views
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Call Centers Contact Centers
Customer Requirements Expand
MULTICHANNEL: Face to Face, Phone, Email, Web, Chat
INTELLIGENT: Knowledgebase, Search Engines, Intelligent Autobots
INDIVIDUALIZED: Customer 360 degree view, History
ANY TIME, ANYWHERE: 24/7 Access GLOBAL: Follow the Sun Customer
Service
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TERMINOLOGY
Outsourced – Services provided by external partner specializing in business process outsourcingOff-shoreOff-shore – Services provided in another country, often India, China, Malaysia, Eastern EuropeNear-shoreNear-shore – Services provided in a location which is 2-3 hour plane ride from corporate office often Latin America for US companiesHome Sourced/Remote Agents – Home based workers connected via high speed data links for voice and data transmissionCRM – Customer Relationship Management - Software and process for managing the customer relationship throughout the lifecycle
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Core components of contact centers
Source: December 12, 2005, Tech Choices “The Forrester Wave™: Multichannel Contact Center Outsourcers: Q4, 2005”
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TRENDSTRENDS – Multi-channel support emerges as important criteria
Traditional telephone support dominates today but customer behavior is changing
Customers now demand cross-channel support
Integrated support required for online and speech-enabled IVR interactions
Lower cost channels offer financially attractive option to companies with large contact centers
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CALL CENTER GROUP© Call Center Group 2006.
Source: December 12, 2005, Tech Choices “The Forrester Wave™: Multichannel Contact Center Outsourcers: Q4, 2005”
Multichannel customer support options
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CALL CENTER GROUP© Call Center Group 2006.
Contact Center Core Services
Types of transactions supported: Range of transactions supported
Reporting and metrics: Supports clients with real-time access to metrics across a comprehensive set of reports
Process improvements: Internal process guidelines and adherence to industry quality processes
Quality monitoring and workforce management: Use of commercial applications with internal team dedicated to quality performance
Agent and supervisor training: Continuous training and advancement opportunities
Key
Perf
orm
ance
Key
Perf
orm
ance
Indi
cato
rs
Indi
cato
rs
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CALL CENTER GROUP© Call Center Group 2006.
Multichannel support includes eService
CSR collaborationCSR collaboration: Online support for chat, co-browse, and shared screens
Email support: Supports multiple types of email interactions with full integration to agent desktop
IVR support/speech recognition: Advanced capabilities to support speech-solutions in addition to DTMF
Offline support: Support for paper, forms, fax, fulfillment
CSR desktop integration: Agents view an fully integrated 360 degree view of customers
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Technology enables advanced services CRM integration
Flexible integration with leading vendors’ CRM applications
CTI support Ability to support client preferences across
major CTI platforms Outbound notification
Support of voice, text, SMS messaging System scalability
Largest current customer supported Survivability & Security
Comprehensive business continuity planning and redundancy
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GLOBAL CALL CENTERS
WHY IS IT SUCH A HOT TOPIC?
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THE WORLD IS FLAT 10 FLATTENERS
• Walls Down, Windows Up
• Netscape IPO• Work Flow
Software• Open Sourcing• Outsourcing
• Offshoring• Supply Chaining• Insourcing• Informing • The Steroids
** Reference: The World is Flat by Thomas Friedman, Chapter Two
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Offshore Best Practices
Go offshore for the right reasons.
Source: The future of outsourcing, Business Week, 1/31/06.
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CALL CENTER GROUP© Call Center Group 2006.
Rules for Success
Choose your model carefully.
Get your people on board.
Source: The future of outsourcing, Business Week, 1/31/06.
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CALL CENTER GROUP© Call Center Group 2006.
Rules for Success
Be prepared to invest time and effort.
Treat your partners like equals.
Source: The future of outsourcing, Business Week, 1/31/06.
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Case Studies – Different Solutions
Jet Blue – home sourcing in Utah Agents are all home based Work 25 hours/week – 30% increase in productivity(28% of firms use remote agents, although 61%
could)
Dell - Tech Support – ebb and flow – off shore Dell pulls back enterprise support, leaves consumer Announces doubling positions in India to 20,000
IndyMac Bancorp – financial services aggressive offshore outsourcing strategy Jumped from 22nd largest US mortgage issuer to #
9 in 3 years 18% return on equity outpaces rivals
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GLOBAL SNAPSHOT: Outsourcing trends Outsourcing contact centers continue strong
growth US and UK major markets for using
outsourcers Outsourcing represents approximately 15% of
total number of contact centers Sites expand and include on-shore, near-shore,
and offshore locations Many new vendors entering market resulting
in highly fragmented market with hundreds of vendors across the globe
Tier one vendors capture large percentage of market revenues while many smaller vendors expected to consolidate or be acquired
Source: Forrester Research
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WHY OUTSOURCE?Market drivers for outsourcing contact centers Lower operation costs Manage customers using leading edge
technology Avoid capital expense for building and
maintaining in house Deliver greater efficiency Support traffic spikes and seasonal traffic Improve revenue opportunities with upsell
and cross-sell options
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WHY NOT OUTSOURCE?WHY NOT OUTSOURCE? Barriers to outsourcing
Lose control of customer management Privacy and security issues Risk of lower customer satisfaction Concerns regarding poorer quality services Contact centers considered core internal
business processes Vendors lack of specific industry experience Cultural and language issues Complex technical requirements, no
expertise
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Hot Players - Offshore Outsourcing World
BUSINESS SERVICES SOFTWARE DEVELOPMENT
CALL CENTERS
1. Hewitt Associates US 1. Tata Consultancy India 1. Convergys US
2. ACS US 2. Infosys Technologies India
2. Wipro India
3. Accenture US 3. Wipro India 3. ICICI OneSource India
4. IBM US 4. Accenture US 4. ClientLogic US
5. EDS US 5. IBM US 5. 24/7 Customer India
6. Hewlett-Packard US 6. Cognizant Technology Solutions US
6. SR Teleperformance France
7. Wipro India 7. Satyam India 7. eTelecare International US
8. HCL Technologies India 8. Patni Computer Systems India
8. SITEL US
9. Tata Consultancy India 9. EDS US 9. Teletech US
10. WNS Global Services India
10. CSC US 10. CustomerCorp US
Data: Gartner Inc. Ranking based on frequency of queries from Gartner’s 10,000 global clients.
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CALL CENTER GROUP© Call Center Group 2006.
Outsourcing Goes Global
Data: Gartner. A.T. Kearney, Nasscom, BusinessWeek.
REGION
CENTRAL & EASTERN EUROPE
CHINA & SOUTHEAST ASIA
LATIN AMERICA & CARIBBEAN
MIDDLE EAST & AFRICA
Market Size $3.3 Billion $3.1 Billion $2.9 Billion $425 Million
Top-Ranked Countries
Czech Republic, Bulgaria, Slovakia, Poland, Hungary
China, Malaysia, Philippines, Singapore, Thailand
Chile, Brazil, Mexico, Costa Rica, Argentina
Egypt, Jordan, United Arab Emirates, Ghana, Tunisia
Up-and-Comers
Romania, Russia, Ukraine, Belarus
Indonesia, Vietnam, Sri Lanka
Jamaica, Panama, Nicaragua, Colombia
South Aftrica, Israel, Turkey, Morocco
Emerging Local Providers
Luxoft(Russia), EPAM Systems (Belarus), Softline (Ukraine), DataArt (Russia)
NCS (Singapore), Bluem, Neusoft Group, Boraden Gate Systems (China)
Softtek (Mexico), Neoris (Mexico), Politec (Brazil), DBAccess (Venezuela)
Xceed (Egypt), Ness Technologies (Israel), Jeraisy Group (Saudi Arabia)
India still dominates services offshoring, with 60% of total industry revenues.India still dominates services offshoring, with 60% of total industry revenues.
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Offshoring – Global Competition
Every morning in Africa, a gazelle wakes up.
It knows that it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up.
It knows that it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter whether you are a lion or a gazelle.
When the sun comes up, you better start running.
(Traditional African Proverb)
“If Americans and Europeans want to benefit from the flattening of the world and the interconnecting of all the markets and knowledge centers, they will have to run at least as fast as the fastest lion.”
Source: The World is Flat, Thomas S. Friedman
Source: The World is Flat, Thomas Friedman.
One, Customer, Easy CALL CENTER GROUP
Thank you
Sharon Pettigrew
CALL CENTER GROUP
650-579-1298
One, Customer, Easy
CALL CENTER GROUP© Call Center Group 2006.
Sources
• Business Week, Feature Article:The future of outsourcing, 1/31/06.
• Forrester Research, Tech Choices “The Forrester Wave™: Multichannel Contact Center – Outsourcers Q4”, December 12, 2005.
• Friedman, Thomas L., The World is Flat, A Brief History of the Twenty-first Century, Farrar, Straus & Giroux, © April 2005.
• Gartner Inc. Ranking based on frequency of queries from Gartner’s 10,000 global clients.
www.247customer.com29
24 SEVEN
PR
OFI
LE
BUSINESS IS ABOUT DOING THINGS DIFFERENTLY.
Global Customer Operations Panel
Kathy Juve
VP-Sales, 24/7 Customer
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 30
Agenda
• Offshore outsourcing- key facts
• Multi-shoring
• What differentiates 24/7 Customer as an outsource partner?
• Best Practices
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 31
Offshore outsourcing industry: key facts
• Indian BPO industry(05-06): $6.3 B • Number people employed in BPO: 409,000• No of professionals in customer care: 150,000 • Total service providers in India: 500+• Global companies outsourcing to India: 350+• Number of US captives set up in India: 40
UK USA Others TotalFinancial services 26 65 3 94Services 15 67 2 84Telecom 25 17 4 46Insurance 8 20 1 29Airlines 1 4 20 25Technology 2 22 1 25Retail 2 19 1 22
Manufacturing 0 11 2 13Healthcare 3 9 0 12Travel 0 5 0 5Total 82 239 34 355
BPO FY 2004 FY 2005 FY 2006EIndustry revenues $3.2 Bn $ 4.6 Bn $ 6.3 B
People 216,000 316,000 409,000
Y-o-Y growth: 60%
Over 350 companies are outsourcing to offshore
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 32
Offshore: Business Drivers for Change
Onshore presence and control
Perception on what can be offshored
Lack of executive sponsorship
Competitive pressures
Cost reduction
Improvement in service levels
2002BPO service providers-” Same for
less”
2007Service delivery as a strategic asset and a competitive advantage
Scalability
Process maturity of offshore providers
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 33
Phase 1 – Cost reduction
Key practices
Sample key metrics
•Cost of application•Cost of rejection•Cost per sale•Cost to serve•Cost of performance•Impact of attrition on program•Quote to conversion
Original cost
base in the US
Cost savings
Additi-onal
telecom costs
Managemnt costs
Net offshore
cost
Economies of scale
Process improve
ment benefits
New cost base
Direct savings- 40% to 50%Additional savings 15%-25%
Performance
benefits
•Maturity of process and clear back end metrics
•Driving vendor performance through well defined metrics and periodic tracking of costs
• Defining cost goals for stage 2 benefits
•Helping vendor meet their operational goals and challenges. e.g.- contribution towards rewards/ incentivisation etc
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 34
Phase 2 – Business impact
Impact of performance on business
•From operating metrics to business value•Business value of competence or Centre of Excellence•Impact of business value by vendor to enhance total performance
Sample key metrics
•Value per application•Business impact on customer satisfaction
•Total Value of Partner
Highlights
•BPO service providers are able to show positive impact of performance on business value
www.247customer.com35
24 SEVEN
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Global delivery
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 36
Multi-shore: the era of global sourcing
• Offshore, onshore, nearshore, multishore, anyshore!
• “Multi-shore in BPO involves delivering a suite of service offerings leveraging a low risk mix of onshore, nearshore and offshore resources in multiple locations and distributing them globally”
Benefits
• Risk mitigation against political instabilities & natural calamities
• Enables faster time-to-market
• Access to specific needs in terms of capabilities/ language
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 37
Global Sourcing Maturity
Ma
turi
ty
Level 5
Level 4
Level 3
Level 2
Level 1
Ready Efficient Effective Optimized Transformational
Ris
k
Multiple stages in global sourcingCost
advantagePerformance enhancement
Performance optimization
Knowledge leverage
Productization
Value mapping
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 38
Key success factors in global delivery
1. Process standardization
2. Multi process integration across geographies
3. Creating centers of excellence by geography
4. Standardization of human capital management
5. Global account management framework
www.247customer.com39
24 SEVEN
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24/7 CustomerDelivering effective business performance
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 40
Corporate fact sheet
• Who we are An “Integrated Customer Lifecycle Management” company with headquarters in
Los Gatos, CA, providing call center and back office services
• Our business 6,000 people
Over 8 million transactions per month
$1.5 billion in transaction value managed for our customers
Funded by Sequoia Capital
Strong presence in BFSI, Technology, Retail, Logistics industry
Over 15 marquee clients
• Our performance #1 vendor in performance across 70% of all programs
#1 or #2 vendor in performance across 80% of all programs
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 41
Industry recognition
Rated among Top 5 hot players in the Offshore Outsourcing World - Business
Week, January 06
Recipient of the IT Leadership Award instituted by IT people in association
with NDTV and DNA- Jan 06
Ranked amongst the Top 5 Contact Centers worldwide - neoIT-Jan 06
24/7 Customer listed in the Leaders category of Global 100 of IAOP
Featured in Pulitzer award winning author Tom Friedman’s “World is Flat”
Awarded the “Emerging Star” by TiEcon- May 05
Featured in “Results” a book on organizational DNA
Among the top 50 best managed companies by the Black book of
Outsourcing-Mar 05
A NASSCOM Top 15 company
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 42
Integrated Customer Lifecycle Management Services
• Integrates the touch points in the
entire interaction lifecycle
• Provide a holistic view into end
customer management
• Provides customer and brand
behavior insights
• Improves efficiency and effectiveness
of customer management at reduced
costs
A powerful, integrated model that addresses all the
touch points in the entire interaction lifecycle while
also providing insights in terms of customer and brand
behavior
A powerful, integrated model that addresses all the
touch points in the entire interaction lifecycle while
also providing insights in terms of customer and brand
behavior
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 43
What differentiates 24/7 Customer?
• Based on mathematical models that can create predictability, scalability, repeatability and sustainability of business performance
• Based on Toyota Production System
• Delivers predictability of performance across processes
• 10% outperformance
Innovation labs
Science behind Performance
24/7 Production SystemEff
ectiv
enes
s
Efficiency
• Improvement in business performance of customer lifecycle processes
24/7 Customer consistently enhances performance of business processes across the end consumer lifecycle thereby creating a sustainable competitive advantage to its customers
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 44
Our outperformance highlights
Customer Geography Service Ranking across centers*
Top 5 credit card company US Customer acquisition No. 1
Top 5 online retail company US Chat/ email support No. 1
UK’s no 1 insurance company UK, Canada Customer Lifecycle Management No. 1
Largest independent credit card issuer in the world
US, UK and Canada Customer acquisition No. 1
Global top 3 freight and transportation company
UK,Ireland Customer service No. 1
Global top 3 hardware company US Technical support No. 1
Top 3 US Bank US Customer acquisition No. 1
Global top 3 Merchant services provider
US Settlements support/ Technical support
No. 1
Top 10 UK insurance company UK Customer acquisition No. 1
A diversified business group into travel, leisure, hospitality
UK Customer support, back office services, finance and accounting
No. 1
Global Top 3 ATM company US Technical support No. 1
24/7 Customer is the no. 1 service provider for over 70% of all client
engagements
24/7 Customer is the no. 1 service provider for over 70% of all client
engagements
*Includes in house and outsourced centers
www.247customer.com45
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Best Practices
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 46
Some best practices in contact centers
1. Knowledge managementCreating an organization wide knowledge repository that reduces rework, defects and improves
efficiency
2. Business Process ImprovementJoint initiatives with customers using Six Sigma and lean techniques
3. Transaction analyticsCreation of powerful insights into end customer behavior using advanced statistical analytical
models
4. Platform for innovationCreation and testing of business process transformation using innovation as a key driver
www.247customer.comConfidential © 24/7 Customer Inc. 2006 | 47
The Payback on Proactive Customer Service
A simple, conservative business case
Strategic drivers of Proactive Customer Service
• Improve Customer Satisfaction, Loyalty, Revenue• Increase strength/reputation of brand• Increase repeat business and cross-sales• Increase Quality of Service (wait times, abandon rate) • Improve Employee Morale• Reduce returns due to poor customer service• Reduce cost of sales via customer referrals • Reduce Customer Care overhead• Reduce Training Costs• Reduce Turnover, hiring/on-boarding Costs
Great Service drives repeat sales
Situation Re-Purchase Probability
Product with no problems 76%
Product with problems and no recovery mechanism
32%
Product with problems with a WOW recovery system
89%
Source: Purdue University Center for Customer-Driven Quality, Dr. J. Anton
Financial/Tactical drivers of Proactive Customer Service
• Reduced Call and eMail Volume Large amount of service inquiries are repetitive Proactive Customer Service reduces call volume 10%-
30% and eMail volume by 50%-70%
• Increase Agent Productivity (email and calls) Increase agent Calls/eMails per day Decrease Call/eMail Handle Time
• Reduce KM maintenance cost The “repetitive questions” are constantly changing The largest TCO item: Maintaining the KM’s
Maintenance is the largest TCO component of a Custom Support KM Repository
Maintenance47%
Content Development
28%
Hardware2%
Software10%
Integration13%
Source:Gartner March 2003, “Customer Self-Service: Reducing Customer Maintenance Costs”, Esteban Kolsky.
Proactive Customer Service Reduces Maintenance Costs
• Best Practices A – C• Customer Support index• SmartAssistant • SmartSensing• Automate updating process• Multi-tenant infrastructure:
Ease to get started, use, and support
Maintenance is ~50% of the costof a customer service KM Repository
53
Results of Best Practices
54
Customer Success Index (CSI)
• CSI Methodology – Identifies key variables
that directly impact the value of your solution
• Monitors Top Vital Signs– Tune-Ups– Software Version– Site Traffic– Features Enabled– Integrations
• Dynamic– Real-time information
55
On Demand Delivery
Eliminates over 80% of ownership
costs
Deployment up to 5 times faster
On Demand In-House