What are the business risks of outsourcing customer service?
Research shows that enterprises will still face many severe risks when outsourcing customer service. All along, enterprises have outsourced non-core business processes to areas with lower labor costs, or large third parties "cut costs" with economic effects as the main way. However, they often lack sufficient information for effective cost and return analysis, and pay too much attention to improper or difficult-to-measure service level and cost measurement. According to Gartner's analysis, successful outsourcing can make enterprises get 25%-30% cost savings. But even so, the improper management mode of the outsourcer will still cause a sharp decline in the quality of customer experience, affect the brand value of the company, and finally make the cost savings go up in smoke. When outsourcing, most companies ignore the importance of effectively managing customer service experience. They are often bound by "long-term" outsourcing contracts without "piloting" operations in advance. In addition, compared with the self-operated call center 19%-25%, the turnover rate of outsourcing providers is often as high as 70%-80%, which also breeds considerable knowledge management and maintenance risks. Although outsourcing non-core processes can achieve certain returns, these returns can not be seen overnight, and enterprises should adopt a step-by-step approach to strengthen control. For those enterprises that are new to business process outsourcing, it is suggested to start with local outsourcing (rather than offshore outsourcing) and gradually get familiar with it. Don't be fooled by the low cost of offshore outsourcing, but hand over the whole customer service process from the terminal to the terminal. Before considering offshore outsourcing, it is necessary to conduct a comprehensive and thorough evaluation of outsourcing providers and objectively measure their ability to handle offshore relations. In recent years, India is the best service outsourcing country in the world, but according to reliable sources, there have been some inevitable problems in customer service outsourcing in India in recent years. The following is an article from the China Embassy in India: A few days ago, Mr. Ned, who lives in London, lost his credit card and immediately called the customer service center to report the loss, but every time he heard English with a strong Indian accent, he was puzzled. It turned out that in order to save personnel costs, the bank moved the service center for receiving inquiries and reporting losses to India and hired Indian customer service personnel. This is called service outsourcing. In the past five years, India's outsourcing industry has developed rapidly and has been sought after by many foreign-funded enterprises. Recently, however, some enterprises began to quit. Powergen, Britain's second largest energy company, announced that it would close its customer service center in India and transfer it all back to Britain. The reason is that since they moved the customer service center to India, the number of customer complaints received has increased significantly, which has seriously dragged down the quality of "British service". Don't sacrifice service quality for low cost, said Huo Le, director of operations of Powergen. "It is short-sighted to outsource customer service overseas. It's not as cost-effective as it looks, but it makes us lose our original professional quality. Although the price of overseas outsourcing is low, we will not sacrifice customer satisfaction in order to save costs. " Holler said that the British customer service staff will focus on how to completely solve a problem for customers, instead of counting how many customers can answer the phone every day like India. Fleming, Secretary-General of the British Financial Industry Alliance, commented: "We very much hope that Powergen's decision will help enhance the reputation of the British customer service industry, and we also hope that other companies can weigh the impact of outsourcing on services and brands and reduce this trend." He believes that this will undoubtedly serve as a warning to those enterprises that plan to outsource their services to India. There are many problems in service outsourcing. In a survey, a British consumer agency found that the number of people who expressed dissatisfaction with overseas customer service centers was three times that of local people. According to a survey, Indians speak English with a strong accent, and the usage of some words is different from that of Britain. Once we talk about a little professional issues, there will be communication barriers. In addition, for overseas customer service staff who have no real life experience in the UK and have different cultural backgrounds, some problems cannot be solved at all. According to British media reports, a customer of a British insurance company called the Indian customer service center for compensation after the car was hit. However, the service personnel can't evaluate the compensation amount because there is no such model in India. For the British people who make 654.38+000 billion customer service calls every year, this kind of thing happens almost every day. In addition to language and cultural barriers, from the reporter's experience in India, there are still many areas to be improved in India's best service industry, such as service awareness. In many service industries in India, when customers inquire or complain, the attitude of service personnel is very good, but it is always difficult to solve the problem in time. Many foreigners living in the local area will sum up India's service industry in one sentence when chatting: "Good attitude can't solve it". With the rapid expansion of outsourcing, there is a shortage of talents in some customer service centers in India. Some people who have not passed English and professional skills have to receive rapid training, and the outsourcing personnel with mixed quality have also brought many negative effects to the reputation of Indian service industry. According to BBC TV last year, an Indian customer service center named Mfisis was involved in a scandal of stealing trade secrets. A former employee of the company used his business customer information to steal as much as $350,000 from the bank. The British "Sun" once said that its reporter paid a computer expert in New Delhi $5,000 and obtained personal details such as account numbers, bank card details and passwords of 1000 British bank customers. Outsourcing is the trend, and enterprises will not face an increase in customer complaints and a decline in corporate reputation because of choking on food. European and American companies have cancelled their service centers in India. Abbey, a large British bank, just closed its service center in Bangalore, India last year, and Dell was forced to close its call service center in India because of customers' complaints about service quality. Gupta, a professor at the Indian Institute of Economic Growth, said in an interview with this reporter that this may be just an individual phenomenon. As far as the global market is concerned, the scale of Indian outsourcing industry is still growing. According to a report by McKinsey, the total value of outsourcing business in India reached $22 billion, employing 2.3 million people, accounting for 7% of India's GDP and 44% of its export growth. Service outsourcing has become an irresistible trend, and multinational companies will not choke to death because of local problems. No matter what problems arise, the development of customer service outsourcing in China needs to be improved or perfected on the basis of others' experience and lessons. Only by constantly updating and advancing with the times can we create a broader world. www.5 1dobest.com