The proliferation of new contact centre delivery locations globally has done little to allay fears of widespread price and attrition increases for outsourcing vendors. In its most recent strategic focus report, Trends in Global Contact Centre Outsourcing Pricing and Attrition, independent market analyst Datamonitor illustrates some of the key challenges facing outsourcers in key onshore / offshore delivery markets and highlights strategies that may be deployed to counter these problems. In addition, the report also presents a survey of contact centre outsourcing prices in a number of locations.
Among the key domestic markets from where contact centre outsourcing services are delivered, Datamonitor estimates that the UK, the Netherlands and France rank among the most expensive in terms of fully loaded price per agent per hour (including wages, benefits, telephony / technology, property, mark-up and other expenses). However, Peter Ryan, head of contact centre outsourcing analysis at Datamonitor and author of the report, also notes that while these markets are among the most expensive in which to deal, there are several trends that vendors may face when dealing across established onshore markets.
“It is clear that no matter whether in Western Europe or the USA, contact centre vendors are facing problems in terms of recruiting well-qualified contact centre agents.* Many cite an inability to find contact centre agents of a high calibre and are frustrated at their unwillingness to stay in their role over an extended period of time. The result is an erosion of margin or higher costs being passed back to the client. Either way, the vendor's competitive positioning is compromised.”
While most offshore markets have been positioned at a lower level than most domestic delivery locations, the same cannot be said for Canada. Ryan notes that with an ever-high Canadian dollar pushing up prices, US outsourcers, long the mainstay of Canada's contact centre industry, have decided to seek new delivery locations. These include traditional countries such as Mexico and the Philippines, as well as emerging locations, including Egypt, Malaysia and Colombia.
While contact centre agent churn has been characteristic in all regions of the world, Datamonitor has noted several examples in which local issues have been pronounced. In India and Mexico, the presence of opportunities in other industries has been paramount in prospective contact centre agents choosing non-contact centre careers. However, in other markets, such as the Philippines, the presence of multiple contact centre vendors has led to bidding wars for contact centre agents, and has resulted in their switching vendors at a rapid rate.
Datamonitor's research clearly shows that there is a correlation between keeping price points stable across delivery markets and low rates of agent churn.
According to Ryan, in order to retain staff and keep attrition a low as possible, contact centre vendors must be able to show their employees that over the long term, they will be able to glean career opportunities, as opposed to simply being continually stuck on the telephone.
“This can be done by outlining a career path for contact centre agents at the outset of their recruitment, and accentuated by frequent feedback sessions,” says Ryan.
“In addition, providing wage rates that are fair and reflective of the market is also important, as well as benefits that will derive long-term value for the agent. By taking these steps and others, vendors will soon realise less agent churn and more price stability.”
*Call Centre Agent position - Agent positions are desk from which call centre agents make and/or receive telephone calls to internal or external customers. This is taken to imply that the call in question involves communication between the agent and the customer. Multiple agents can use the same agent position during varying shifts in a day.
Datamonitor's report Trends in Global Contact Centre Outsourcing Pricing and Attrition (Strategic Focus), assesses the impact of cost and price rises globally. It also provides strategic recommendations on how contact centre vendors can mitigate these challenges.
