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Terrorist
threats, political uncertainty, increasing staff turnover rates and inferior infrastructures
are forcing UK companies to reconsider their policy to off-shore call centre operations.
Many organisations
are becoming increasingly nervous about government instability, sabotage and civil
unrest that they are seeking insurance of up to £40 million against the cost of
shutting down off-shore operations.
According to a new
research document commissioned by the Birmingham-based Port@l, many firms base
their off shore strategies on inadequate desk research, and lack of cultural understanding,
while companies in the financial sector are beginning to feel the benefits gained
from outsourcing off-shore are over hyped.
Carlton Hide, director
of sales and client relations with Port@l said: “The reality is that off-shore
operations can be dangerous, difficult, even disastrous to a customer’s confidence,
and yet remains a viable, cost-saving option.
“It appears people
have been asking the wrong questions and basing their decisions purely on cost
savings rather than customer requirements, and long term damage to a brand and
customer confidence.”
With the change
in the economics of call centre services, more and more UK companies are looking
to go off shore to reduce their staff and operating costs. As a result, it is
creating a fundamental change in the way UK operations address the issue of off-shoring.
Port@l, who operate
and manage a series of hosted call centres throughout the UK, is using the findings
from the research carried out by ( Leeds ) to ramp up its capabilities to the
extent where they can deliver a far more competitive environment.
Hide added: “The
UK offers some of the best call centre operations in the world. We have the experience,
the staff and the track record. The research shows that while promise of
cost savings still seems to be a holy grail, customer service and retention is
the new mantra.”
Key findings from
the research reveal that while many UK managers approved of off-shoring in principle,
they would not use it for their own operations, while 60% of the UK public is
against outsourcing.
This fact was echoed
when 100 directors with responsibility for outsourcing interviewed within the
financial sector, reported they would not off-shore key functions such as processing
new business or customer service administration.
Drawing information
from industry opinion formers, magazines, sector reports and discussions with
directors responsible for outsourcing, the Port@l research highlights a disturbing
customer reaction trend.
According to a recent
Mitial report, 60% of British consumers are against having their calls handled
in India, and that feelings were even stronger in the financial sector, with more
than 90% stating they would change supplier if their company moved call handling
to India.
Hide said: “Many
organisations rely on traditional desk-based research to develop off-shore strategies;
they do not fully consider all options. They fail to review cultural norms, behaviours,
negotiating styles and communication issues.
“Companies who have
switched their operations to India will eventually see their costs rise and service
levels fall. Unwittingly, managers lock in costs and make service worse for their
customers. It is a never ending spiral, China is now under-cutting India.
“The reality of
business is now a balance of off-shore and on-shore. Companies have identified
the importance of out-sourcing certain back office functions, while keeping essential
customer-facing services on-shore.”
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