Companies outsource all or part of their customer contact functions, not because they see them as unimportant, but because they understand three concepts. First, they realize that the contact center is vital to their business. Secondly, they recognize contact centers are not easy to build or manage. And thirdly, they understand that contact centers will continue to grow in complexity. Companies outsource their contact centers to ensure competitive service delivery with reduced operating expense.

Cost savings
The savings you achieve through outsourcing are highly dependent on the level and quality of service you currently provide versus the level and quality of service you contract for with your outsourcing vendor. It is not unreasonable for you to expect the vendor to provide the same level of service as you do at a reduced rate, given their expertise and ability to share human and physical resources across multiple clients. However, often companies become enamored with the range of possibilities the vendor provides (e.g., case management tools, data warehousing and data mining, fax on demand, automated fulfillment, etc.) and the level of service they contract for far exceeds what they currently provide. In this case, monthly operating expenses may actually increase, rather than decrease. The increase may be justifiable if it enables the company to acquire increased functionality without having to make large capital outlays or invest in soon-to-be obsolete technology and if it results in increased customer retention.

Common pitfalls
Outsourcing relationships may begin to sour when the company's and the vendor's interpretation of what was promised as part of the negotiated price differs. Fortunately, the ability to avoid such an occurrence rests squarely in the company's hands. You can avoid these pitfalls and construct a win-win situation for both parties by spending the time up-front to identify what is required, selecting a vendor with both the ability and desire to partner with the company to deliver these requirements, and structuring the contract so as to align the vendor's performance and compensation with meeting the company's overall objectives.