How To Save Money With Business Process Outsourcing

Overview: In the ongoing search for a competitive advantage, organizations are altering their focus from lowering the cost of labor to building strategic relationships with business process outsourcing (BPO) providers.

The 2016 Global Outsourcing Survey from Deloitte surveyed leaders of organizations of all sizes and representing geographic footprints in the Americas, Europe, and Asia. The leaders reported a clear shift from traditional labor cost cutting to an emphasis on driving innovation and value for their organizations.

The trends reflect new perspectives on outsourcing. While still a priority, cost cutting is no longer the primary driver for Business process outsourcing adoption. Instead, about half of (47%) the organizations in the survey identified their service providers as business enablers, supporting innovation and business transformation, rather than playing the labor arbitrage game to reduce costs.

More organizations are opting for outsourcing not just to reduce costs, but to also take advantage of the value-added services provided by Business process outsourcing providers. The value proposition for call center outsourcing has transformed from a labor arbitrage cost containment strategy to one that focuses on delivering business outcomes.

As consumers across all ages and demographics adopt digital customer service channels such as chat, mobile, web, and social, they now expect relevant and friction-free omni channel customer service. And customers expect cross-channel context, i.e. the customer service outsourcing rep will have access to the information they previously entered into the chat bot. BPO vendors stay on the leading edge of these changes, making them the top choice to build an omni channel customer service strategy.

In the Deloitte survey more than 50% of participants found that third-party advisors added value during strategic assessment, business-case development, RFP/vendor selection, and negotiation and contracting. It’s clear leading organizations look to their Business process outsourcing partners to drive transformational change and improve business results.

Disruption Driving Change in BPO Strategies

Digital disruption has changed the competitive landscape for organizations over the past few years. The growing number of channels available for consumers to interact with companies has changed consumer behaviors and expectations.

Consumers are no longer bound to interacting with organizations in brick-and-mortar locations, or via a telephone-based call center. The convenience and control offered by mobile access has created a class of consumers that are always connected to friends, communities and organizations literally around the world.

Digital and mobile offerings have given rise to disruption in almost every industry sector. And organizations have capitalized on the transformative capabilities of consumer-based technologies and changing consumer behavior to reinvent how consumers receive goods and services.

Responding to disruption has forced organizations to seek out new strategies to win and retain customers.

That’s why innovation and customer service management have supplanted labor cost as the key drivers for business seeking to gain competitive advantage.

BPO Strategies Accelerate Business Transformation

The shift away from labor arbitrage as a key Business process outsourcing strategy has opened the door for value based solutions to meet the new requirements of clients

Organizations understand the importance of customer call centers in the trajectory of a business, including the ability to retain top talent and align with internal and external compliance requirements while providing enhanced value to their customers, KPMG reports. This is significant shift in the priority of call centers over the previous 5 to 10 years.

While the ubiquity of information has changed how consumers find information — think FAQs, instructional videos, user forums —there’s still a demand for live interaction from a significant portion of the population.

More than 50% of customers in a recent NICE inContact survey still prefer agent-assisted inbound/outbound phone calls for fastest resolution, even though most businesses offer a range of agent-assisted and self-service channels: online chat/video, SMS, social media. In the survey, businesses and customers concurred that call centers should direct customers to the channel that resolve their situation in the quickest way.

Call center experts continue to recognize the value of trained and experienced agents who possess the knowledge and the empathy to ensure the interaction with the customer meets expectations in a timely, thorough, and successful manner. They are reluctant to rely solely on technology for all interactions. During this transitional phase, the human element is being augmented with technology in order to stay competitive.

In the near future, call centers will take more advantage of automation for repeated and repeatable types of transactions and contacts. Digital native consumers value moving through self help options at their own speed, while also valuing the capability to reach a live agent when necessary. Often, simply having the option to contact an agent will give a user the confidence to use self-help technology for initial solutions.

The basic digital service solutions on the market today are know as Robotic Process Automation (RPA), which are capable of handling processes based on structured data and fixed rules. RPAs are best deployed in low-value, back-office functions such as form-filling and invoice processing that is still often completed with human labor. Deploying RPA will help reduce errors, speed up interactions and reduce the cost of operation.

Allowing a customer the option to speak to a representative at any point during the contact is still important to the overall experience and helps minimize the potential for negative feedback. It is also expensive, requiring well-trained representatives with knowledge readily available to effectively answer questions or reach an acceptable resolution.

For many BPO clients, a mix of live agents and self-help technology delivers the optimum mix of personal engagement and speedy service. For a large swath of the customer base, the ability to interact with a live agent that is trained to actively listen to and demonstrate empathy is vital to achieving a high level of satisfaction.

In the not too distant future, artificial intelligence technologies will be perfect the capability to detect tone and emotions, delivering a realistic yet automated customer interaction.

Deliver Customer Experience with a BPO Strategy

In today’s world of likes and thumbs-up reviews, customers influence how a company is perceived for its products and services. Today, companies are coming to understand that customer experience may be the only sustainable competitive advantage left to them. As Gartner writes, “Customer experience is the new battlefield.5 ” Revenue-driven companies are partnering with Business process outsourcing providers to deliver a more seamless and enjoyable customer experience.

BPO Call Center Strategies from TSD Global

Customer Experience: 95% of companies fail to exceed customer expectations. Join that elite 5% who do, by letting our designers reimagine your inbound customer experience to eliminate churn and increase NPS.

Speed to Lead: Leads are 21x more likely to convert if contacted within the first 5 minutes. Activate instant response rates to drive drastically more revenue through your sales team.

Technical Support: 95% of dissatisfied consumers tell others about their bad experience. We bridge the satisfaction gap with soothing technical expertise and truly tenacious troubleshooting.

Lead Qualification: According to, only 25% of leads are legitimate and should be passed to Sales. TSD Global can help ensure qualified leads get to the right teams and unqualified leads won’t clog your pipeline.

Customer Retention: It costs 10x more to acquire a customer than to keep one. TSD Global has experience helping many Fortune 500 companies retain their customers with scalable and responsive customer support services. Let us help you retain and grow your customer base.

Consumer Sales: Businesses have a 60% to 70% chance of selling to an existing customer while the probability of selling to a new prospect is only 5% to 20%. TSD Global can boost retention and increase your market.

Technology Innovation: TSD Global isn’t just an outsourcing company, we have partnered with the most cutting edge technology firms in the US to create products that help clients see the largest ROI on our services. Some of our technology products include Visual IVR’s, AI Voice Bots, and other proprietary tools.

With developments in artificial intelligence and natural language processing, customer service will get smarter. Consumers are being trained by the likes of Siri and Alexa to ask complex questions naturally. The intelligent agents will add a conversational tone to self-service content, leading customers to the preferred answers based on context and prior queries. These intelligent agents will make it easier to deliver the right information to the right user at the right time.

Intelligent agents will also guide customers to agents who are best equipped to answer their questions and solve their problems, and even guide customers to the next steps based on their current behavior. Customers are becoming accustomed to relying on self-service for basic interactions, leaving agents to address complex issues like account closure or claims disputes. These more involved issues are positive opportunities to build long-lasting customer relationships.

BPO Economics: With the growth of outsourced workers and the focus on delivering great customer experiences, organizations are re-evaluating the value of labor. More organizations are shifting from outsourcing for labor arbitrage toward the business benefits of using a BPO provider.

In a comparison of in-house and outsourcing labor efficiencies, look at the big picture. For an in-house agent, the company pays 100 percent of the labor cost. In the business-process outsourcing model, you pay only for the time the agent is productive for your company. You don’t pay for the time the agent waits for the phone to ring, or the time they spend in training or other meetings.

Typically, the outsourcing client pays for about 85 percent of an agent’s time. For example, one of our top agents working at a call center in Indiana costs $24-$27 per hour. For an employee, you pay 100 percent of that cost. With an outsourced call center model, using the above productivity projection of 85 percent, that same agent will cost you $20.40 to $22.95 per hour. That’s an overhead reduction of 15 percent from the start. With an offshore call centers, the math works the same, starting with base salaries of $13-$15.

We typically see at least a 15 percent reduction in FTE costs through shared pool options during lower volume hours of operation. Our call center technology increases the efficiency of our agents. We cross train and time shift tasks as needed to ensure a high level of satisfaction with your customer base.

The BPO rate that TSD Global charges you is an “all in” rate, not ala carte or cost plus or anything else. The hourly or per minute rate includes training and project management costs. It also includes the technology stack, and as the BPO provider we are responsible for ensuring the software and hardware are up to date, as well as managing security issues. The BPO provider shoulders the risks associated with human resources and technology management. The client benefits from the service without the overhead and investment.

In the Deloitte survey it’s clear that organizations are attracted to the emerging trend incorporating enhanced service level agreements and governance structures to evolved the their relationship with BPO providers.

Organizations that value customer service as a key competitive differentiator are choosing BPO partners that share their strategy of achieving measurable business benefits rather than cutting costs. Contact us here: PH: 888-646-6626 Contact Us Here

About TSD Global: TSD Global is an award winning global customer care and back office outsourcing company. They have been called the secret weapon for growth of some of the world’s most notable brands and companies. Since 1989 TSD Global has been a leader in helping companies acquire and retain millions of customers for Fortune 50 clients. TSD Global offers a full omni-channel solution including voice, chat, email, and SMS text to some of the largest companies in the US. They support businesses in many growth verticals such as technology, telecommunications, home services, and financial services. TSD Global is based in Indianapolis, Indiana and operates customer experience centers in the U.S. and Philippines.

SOURCES 1 Deloitte. “2016 Global Outsourcing Survey.” 2016. 2 Forrester Research Inc. “Use Outsourcers to Build Your Omnichannel Customer Service Future.” 2015. 3 KPGM International. “Next Generation Contact Centers.” 2015. 4 NICE inContact. “CX Transformation Benchmark Study.” 2017. 5 Jake Sorofman, Gartner, Inc. “Gartner Surveys Confirm Customer Experience is the New Battlefield.” 2014.





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