Studie - Managing outsourced contact center functions during the economic slowdown (Strategic Focus)

Introduction

A strategic blueprint designed to help outsourced contact center players navigate their horizontal function mix through the current recessionary period.

Scope

*A description of current market trends related to the delivery of customer service, marketing & sales, technical support and debt collection

*Strategic recommendations on how outsourcers can best deliver different contact center services in the current economic slowdown

*Expert analysis on how to position new and emerging business models across customer service, marketing & sales, technical support and debt collection

Highlights

Clients will be emphasizing horizontal expertise when they are looking to contract with an outsourced contact center.

End-user retention and cost savings will be very important in terms of marketing & sales delivery, as well as in customer service. Outsourcers must emphasize their capabilities in these areas if they are to win business in the economic slowdown.

Debt collection is likely to emerge as a focus for many outsourcers, especially with consumer credit fallbacks at an all time high. However, growth in this area could be mitigated by tight market conditions in addition to heavy regulation.

Reasons to Purchase

*Understand what contact center managers are considering in terms of functions to outsource trough the recessionary period

*Learn what strategies are available for each vertical in order to win business in one or more functions

OVERVIEW 1

Catalyst 1

Summary 1

KEY MESSAGES 2

Horizontal expertise will be an important consideration when clients choose an outsourcer 2

End-user satisfaction derived through customer care means revenue opportunities 2

Marketing and sales should focus on customer retention not telemarketing 2

Technical support delivery is evolving to new channels 2

Demand for debt collection will increase as the economy worsens 2

TABLE OF CONTENTS 3

TABLE OF FIGURES 4

TABLE OF TABLES 4

CHAPTER 1 - MARKET OPPORTUNITY 5

Horizontal contact center functions - market overview 5

Customer service 5

Marketing and sales 5

Technical support 5

Debt collection 5

The importance of horizontal functions 7

Market issues facing contact center functionality provision 8

Managing service lines through economic uncertainty 8

Potentially declining call volumes 9

Managing interaction channels across functions 9

CHAPTER 2 - CUSTOMER SERVICE 10

Customer service - market overview 10

Outsourcing potential for customer service functions 11

Current customer service outsourcing deployments 11

Future customer service outsourcing opportunities 12

Business issues facing customer service 13

Generating loyalty through customer service 15

First call resolution emphasis 15

Effective service 16

Cost containment 16

Delivery methods 16

Self service 17

Knowing the customer 17

Investment in analytics 17

End-of-call surveys 18

Long-term revenue opportunities 18

CHAPTER 3 - MARKETING AND SALES 19

Marketing and sales - market overview 19

Outsourcing potential for marketing and sales functions 20

Current outsourced deployments 20

Propensity to outsourced marketing and sales functions 21

Business issues facing marketing and sales contact center services 22

Strategies to profit from marketing and sales outsourcing 23

Emphasize warm-calling and end-user retention 23

Adopt technology to augment marketing and sales 24

End-to-end sales and marketing offering 25

Inbound marketing and sales excellence 25

CHAPTER 4 - TECHNICAL SUPPORT 26

Technical support - market overview 26

Outsourcing potential for technical support functions 27

Current outsourced technical support deployments 27

Propensity to outsource technical support 28

Finding opportunity in technical support 28

Possible threats to technical support outsourcing 29

Potential technical support opportunities for outsourcers 29

Profiting from technical support 30

Focus on cost reduction 30

Adding value to the technical support interaction 30

Effective use of multichannel technologies for technical support 31

Established channels 31

Emerging channels 32

CHAPTER 5 - DEBT COLLECTION 33

Debt collection - market overview 33

Outsourcing potential for debt collection functions 34

Current outsourced deployments in debt collection 34

Propensity to outsource debt collection 35

Market opportunity in debt collection 36

Size of the global debt market 36

Sizable margin opportunity 39

Fractured market 39

Potential obstacles to debt collection outsourcing 40

Established competition 40

Statutory regulation compliance 40

Industry perceptions 40

Complex debt collection models 40

Difficulty in collecting debts 41

Winning business in debt collection outsourcing 41

Acquisition is key to market entry 41

Increase margins through automation 41

Start simple - first-party debt 42

Conduct necessary due diligence on target jurisdictions 42

Offer flexible payment terms 42

Plan for full service account receivable management 42

CHAPTER 6 - STRATEGIC RECOMMENDATIONS 43

During recession, concentrate capabilities on cost containment 43

Emphasize customer retention 43

Revenue-based functional capabilities crucial for long-term relationship 44

Ensure horizontal experience is in place before embarking on new functional offering 44

Vertical tailoring of functional strategies 44

APPENDIX 45

Methodology 45

Further reading 45

Ask the analyst 45

Datamonitor consulting 45

Disclaimer 45

List of Tables

Table 1: Outsourced contact center services global split, 2007 - 2013 6

Table 2: Global GDP change forecast for selected global economies, 2008 - 2010 (%) 9

Table 3: Global customer service function growth, 2007 - 2013 (APs - 000s) 11

Table 4: Marketing and sales global market size, 2007 - 2013 (APs - 000s) 20

Table 5: Technical support global market size, 2007 - 2013 (APs - 000s) 27

Table 6: Global debt collection APs, 2007 - 2013 (APs - 000s) 34

List of Figures

Figure 1: Outsourced contact center services global split, 2007 - 2013 6

Figure 2: Whether you do or do not outsource, can you please rate the importance of the following criteria in choosing an outsourcer? 7

Figure 3: Global customer service function growth, 2007 - 2013 (APs - 000s) 10

Figure 4: Percentage of customer service functions currently outsourced - DPTC0048 12

Figure 5: Likelihood of outsourcing specific customer service functions in the 13

next year (1 - Least Likely; 4 - Most Likely) - DPTC0048 13

Figure 6: Elements to customer service long-term value 15

Figure 7: Marketing and sales global market size, 2007 - 2013 (APs - 000s) 19

Figure 8: Percentage of marketing & sales functions currently outsourced - DPTC0048 21

Figure 9: Likelihood of outsourcing specific marketing and sales functions in the 22

next year (1 - Least Likely; 4 - Most Likely) - DPTC0048 22

Figure 10: Technical support global market size, 2007 - 2013 (APs - 000s) 26

Figure 11: Percentage of technical support functions currently outsourced - DPTC0048 27

Figure 12: Likelihood of outsourcing specific technical support functions in the next year (1 - Least Likely; 4 - Most Likely) - DPTC0048 28

Figure 13: Global debt collection APs, 2007 - 2013 (APs - 000s) 33

Figure 14: Percentage of debt support currently outsourced - DPTC0048 35

Figure 15: Likelihood of outsourcing debt collection in the next year (1 - Least Likely; 4 - Most Likely) - DPTC0048 36

Figure 16: US outstanding consumer debt, 2004 - 2008 37

Figure 17: UK outstanding consumer debt, 2007 - 2008 38

Figure 18: Volume of Australian credit / charge card transactions, 2004 - 2008 39

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