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Call centre outsourcing undergoing big changes, CIO reports

Tuesday, April 26, 2016

Historically, call centre outsourcing contracts have had a much bleaker track record than other types of deals such as BPO and IT outsourcing.

CIO reports this week that figures show between a quarter to a third of all call centre deals up for renewal in a given year end up being terminated – a much higher rate than other types of outsourcing, which average at 15 percent.

What is more alarming, according to a recent report by Everest Group, is that termination rates have risen exponentially over the last two years to an average of 50 percent where contact centres are concerned. On the other hand, those who choose to continue their previous call centre contracts generally decide to expand the scope of their outsourcing either adding geographies, lines of business, or high-value processes.

Everest Group analysts explain the dual trend by the fact that contact centre contracts are now subject to higher expectations on the part of contractors. Once an area of outsourcing where price competition was imperative, voice contracts are now seen as an essential part of the business strategy. Those unable to contribute their own share towards business growth and improvement are usually in for an unwelcomed surprise – contract termination.

Jeffrey Puritt, president of TELUS International, told CIO “Call centre outsourcing buyers now expect their incumbent providers to go ‘beyond the obvious’ of the service-level agreement, especially after the first few years of the relationship. Contracts are not renewed because these relationships have failed to deliver meaningful, long-term, value”.

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