1. How do you feel that offshore agencies have affected the US outsourcing market?
To some degree this has caused depressed pricing due to the labor market in the countries involved. In other ways, it has opened doors of opportunity for partnering companies in the areas of talent and capacities.
2. It seems that more and more companies are outsourcing to offshore primarily due to the cost savings. We have been receiving many emails from customers that are getting frustrated with agents that are clearly from overseas. They tell us that they are not able to respond to their questions correctly and often times “mistake” or do not understand American slang.
They're completely accurate. That is why it is extremely important to partner with the right company. Many offshore solutions are not adequately designed and delivered. The right service partner should be able to prove it's successful model and processes to avoid such an experience.
Do you feel that there truly is no difference between how the agents are responding to the customer, but it is the customers “perception” due to the accent that makes him react differently? Or, do you feel that companies realize that a certain amount of their customers will become upset, but because their costs are so much less, they can afford to loose a certain number of customers?
There was a big rush to move to offshore agencies. Once companies realized what they were getting, things seem to be changing. There is certainly a difference. In addition to slang and accents, the cultural differences really will be the largest issue. Overseas agents just will not understand how business is done in the U.S.A. which will keep many projects from going overseas. The types of projects that can go overseas need to be very narrow in scope. We have found that if the call gets outside its intended purpose, things can get out of hand quickly. I do not believe that most companies will risk losing customers even with reduced costs.
3. As we all know, outsourcing is a very competitive area. Other than price, how do companies differentiate themselves?
The character of the service company (and the client for that matter) is probably the single most important differentiator. This includes responsiveness, integrity, trust, etc. Things will go wrong at times in outsourcing relationships. It comes down to character issues like these that will hold things together for a lasting and successful partnership.
4. What are some of the key questions that should be asked to a first time user of outsourcing services?
What are the most critical elements of service to your clients? Describe the character and talents of the person that should manage the day to day operation of your program? If you were going to train a staff to handle your program, describe how you would train including length of training, skills required, components of training, role-play, etc. How would you manage the program? Describe your expectations about outsourcing vs. in-house?
5. Do you feel that there are some applications that should always stay in-house?
Yes. Typically applications that require a high degree of agent empowerment, a high degree of knowledge and a complex information flow would be candidates to keep in-house. This decision is also highly dependent upon the nature of service and affinity of the customer/prospect base.
6. For some of the more complicated outsourced projects, when, if ever, do you feel it is “OK” for the agent to admit that they do not work directly for the company and that the agent should escalate the situation to their client's representatives?
Anytime the agent is asked, he/she should admit that they do not work directly for the company. It is our goal that the agent is so highly trained that they sound like an employee. If we accomplish that, we can avoid many questions like the above and serve the client best.
7. Have client requirements changed over the recent three years? If so, how have you adjusted?
Yes. More clients realize the benefits of outsourcing. Two major reasons over the past three years. First, legislation is so difficult to keep up with, and dangerous to violate, that the client has come to depend on a professional service company to have dedicated resources keeping up with State and Federal legislation. Second, technology is continuously improving in every area of our business. Clients count on a professional service company to stay up with the latest and greatest, so that they do not have to make the continuous investment themselves.