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Offshore Call Center: Site Selection

Date: 05/12/2008
By: Melissa Pleckham
 

Once you’ve decided that outsourcing is a smart solution for meeting your company’s call center needs, the next step is determining which of the many countries that offer call center outsourcing services will provide the best possible fit for your business. BNET.com reports that “wages of customer service reps in offshore countries can be as much as 80 percent lower than those of their U.S. counterparts.” This substantial wage discrepancy, coupled with the large pool of talented, educated individuals available in the international marketplace, combine to make offshoring an attractive option for many U.S.-based companies. Nations ranging from India to the Philippines to Sri Lanka are competing to offer incentives to businesses seeking outsourcing suppliers. But when there are so many countries to choose from, how do you make a decision? What should you keep in mind when selecting a site for your offshore call center? Consider the specific values, goals and strategies of your company, and keep the following criteria in mind when evaluating each country:

  • How is the market for your industry in that country? Are they experienced in providing the services you need? One great way to determine whether or not the country you’re considering has experience in your particular field is by examining companies related to your own that have already had a successful outsourcing experience. Which outsourcing sites have proven popular in your field? Choosing a country with an immature yet burgeoning market has the potential to pay off, but it’s also an enormous gamble and probably not the best option for a company looking to outsource for the first time.
  • Does the country’s government offer support or incentives to U.S. businesses looking to outsource? Many governments do! Witness Egypt’s new “technocratic” government and its efforts to establish the nation as a viable offshoring alternative to India. Government financial incentives could include anything from tax credits to eased regulatory requirements. On the other hand, many less-developed nations have more bureaucratic red tape to wade through, or a less developed legal system, which makes establishing and enforcing business contracts more difficult. If you’re unsure about an offshore company’s government support or lack thereof, you can usually obtain such information from the country’s embassy.
  • Does the country have the necessary infrastructure in place to facilitate an outsourcing venture? In particular, consider the availability of communications and transportation, two elements of central importance for any company looking to set up an offshore call center: Are they reliable, easy to use, and stable? Again, in a less-developed region, concerns such as possible power loss, bad roads, and outdated technology could make running an effective call center extremely difficult.
  • Are their wage rates competitive? India and the Philippines are outsourcing industry leaders in large part because they have maintained relatively low wage rates; despite rumors of the imminence of rising wages, both nations have managed to keep rates up to 90% lower than those of their U.S. counterparts. One of the main selling points in any outsourcing situation is the prospect of substantial savings; make sure that the situation remains conducive to cutting costs!
  • How is the labor pool in that country? Are their workers educated and quick to learn new methods and strategies? How strong is their cultural work ethic? Is the market large and diverse? A greater number of businesses offering their outsourcing services indicates a greater number of businesses making an effort to provide top-notch, cost-effective labor in order to stay afloat in a competitive marketplace.
  • Are there many language barriers? For instance, one question to ask is whether English is a primary or a secondary language in the country you’re considering. This is a vital issue when you’re looking to outsource your customer service call center to another country. How adept will your new offshore employees be at speaking the language of your customers? Will they be able to understand customers’ questions and communicate their answers effectively? Will heavy accents be a problem? Many companies that offer customer service outsourcing services in other countries put their workers through accent neutralization programs in an effort to curtail their accents and make American customers feel more comfortable; this could certainly be something to keep in mind when choosing an outsourcing site.
  • Is political upheaval a possibility? Look at each country’s history of political corruption, violence and terrorism in order to choose wisely.
  • What kind of legal environment does the country offer? Again, your offshore employees will be your employees, so you must understand their nation’s labor laws, intellectual property laws, contract laws and so forth in order to form an effective partnership and protect your company.
  • Are there substantial cultural differences that could prove to be a roadblock to a smooth business relationship? It’s always important to choose to do business with people with whom you feel comfortable, who truly understand your company’s values, and who have goals and objectives in line with your own.
  • Will the location allow you to provide effective training, guidance and management to your offshore employees? For many younger, less experienced companies with smaller travel budgets, a nearshore solution such as Canada may be a better outsourcing choice than a far-flung destination like Asia, simply because of proximity. Yet for larger, more mature companies, offshoring can be the ideal option for saving money while continuing to provide customers with excellent service.

By clearly defining what your company’s goals are in outsourcing your call center and keeping this checklist in mind, you can easily select the ideal offshoring site for your call center needs.


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