Outsourcing of contact centres in the UK is a mature market but one where client and outsourcer experiences are still mixed. Deloitte and callcentre.co.uk wanted to explore this relationship from both sides to understand why and see if there were recurring themes. Two surveys were issued - one for clients and one for outsourcers - to identify what each party looks for and values in their relationship.
Like so many relationships, the research shows that each party has a different view of the relationship which can lead to disconnects and tensions. It also highlights some issues which can lead to rapid relationship breakdown or those dreaded words: "we grew apart"; "they didn't understand me" or "we just wanted different things".
Here are some of the main themes highlighted by the research:
Lack of outsourcer understanding
Clients value hygiene factors such as data security and business continuity much more highly than outsource providers think they do. Clients also rate sector experience highly yet outsourcers tend not to recruit on this basis. Outsourcers tend to look for good contact centre or customer service people first, assuming that sector exposure will come with time. But it's not all one sided and there are always two sides to every story.
Lack of client understanding
An outsourcer understanding their client's business is not enough. Clients need to understand what it takes to build a strong outsourced service and work together with their suppliers to achieve it. The relationship is better when both parties give their time to improving key operational processes as well as wider customer processes, sometimes beyond the scope of the outsourced service. Again the mismatch: outsourcers attach great value to this whereas clients are less likely to recognise that value.
People not location
The survey shows very clearly that clients value quality and people management more than they do location. However, due to public perception, many offshore operations are being bought back to the UK – often for the wrong reasons.
Clients are playing the field
Clients often have more than one outsourcing relationship which they tender regularly. This can often be counterproductive as an established partnership is often worth more than can be realised through commercial competition. In our view, clients should consolidate where possible, pick the best supplier – or a small number of good ones - and invest time in developing the relationship.
Outsourcers are not keeping pace with technology innovations
As the channel mix that customers use continues to change, outsourcers will need to move from managing calls to managing customers. This can change everything. It also requires new business models and will force suppliers and outsourcers to adopt new commercial models which will, in turn, help drive the right customer outcome. Cost is still important but it is no longer not the primary driver.
Outsourcers need to lead not follow
Client interest in new technology and capabilities outstrips outsourcers' investment in them. Outsourcers have often seen new developments such as online, self-service and social media as threats rather than opportunities. Outsourcers can leverage their scale and expertise to lead their clients though new innovations such as these.
Our conclusions from the research can be summarised in a simple equation:
Collaboration + Strong Relationship + Joint Investment + Commercial Innovation = Increased Value
It is clear that outsourced partnerships can work well but like any relationship they require effort. Never forget that real partnerships thrive on clear, open communication, shared goals and an occasional nice surprise!
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