Free press releases distribution network?

Agency / Source: Cyber City Teleservices

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!



Cyber City Teleservices Comments on the Changing Dynamics of Outsourced Call Centre Pricing - Rob O'Malley, the UK Managing Director of Cyber City Teleservices (Philippines) examines the past, present and future of outsourced call centre pricing
Cyber City Teleservices Comments on the Changing Dynamics of Outsourced Call Centre Pricing

 

PRZOOM - /newswire/ - Stratford Upon Avon, Warwickshire, United Kingdom, 2008/08/06 - Rob O'Malley, the UK Managing Director of Cyber City Teleservices (Philippines) examines the past, present and future of outsourced call centre pricing.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Customer Service/Call Center Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Margins for call centre vendors have reduced steadily since the 1990’s and many have resorted to ever-increasingly complex pricing structures. Depending on the vendor and the application being outsourced, prices can be calculated per item, call, minute, contact, outcome or (as in most circumstances) per agent hour. However, even with the cost per hour calculation, there are many different variations such as fully loaded, cost plus, open-book, productive and timesheet. This variety of pricing options makes comparison difficult and many people who procure these services.

The Different Types of Pricing
Cost per hour” has many definitions. The “basic” cost is that quoted for an hour of agent’s time. The pricing model of OSP’s may or may not include the cost of management. The “ongoing” cost is the basic cost, plus the cost of all other elements necessary to provide the service, such as management time, training, systems development & management. In turn, the “fully loaded” cost is the ongoing cost, plus the cost of set-up and implementation of the programme. Basic hourly rate: this is the price per hour for an agent at a workstation. It may include additional elements such as team leaders and management, depending on how the vendor’s pricing model works. Ongoing hourly rate: this is the price per hour for an agent at a workstation, and includes all other costs such as management, training, and technology that are incurred throughout the length of the contract but does not include set-up costs. Fully loaded hourly rate: is the total cost of the project divided by the total number of hours so that even set-up costs are amortised over the contract duration. Cost plus; In this model, the vendor discloses all of the costs involved in performing the services and adds on their margin. Performance pricing; often used in outbound sales programs but some aspects of performance based pricing in all areas of call centre activity. For many, set-up costs have been eliminated totally and these costs are absorbed across contract duration or for some OSP’s are considered a free part of the sales process. As the market has become more competitive, set up costs are often the first item to be “negotiated” out of the deal.

What Increases Prices
There are a number of aspects which can increase the price. For example, if specific skills such as foreign languages or technical expertise are required, this will be accounted for in the price.
Some systems (technology) can also increase the per-hour cost. For example, if an OSP uses a clients own system, it is reasonable to recharge the cost of implementation. If an OSP uses their own contact management system, the cost of licensing is normally included within the cost-per-hour. If a client insists on a particular software, then this cost is normally recharged either as a one-off fee or is amortised over the duration of the contract.
However, the issue which can increase the overall cost more than any other is that of attrition is very expensive so the total “cost of delivery” in South-East England or Tier 1 Indian cities can be higher than in areas with lower attrition.
Outbound is and should be more expensive due to the more complex skills, attrition rates and salaries required. On average, prices when charged on a purse cost per hour are at least 10% more expensive.

Pricing Changes 2000-2008
When the offshoring explosion boomed, many domestic providers in The UK initially dropped their prices to the point where they were barely breaking even but this was necessary due to the overcapacity which existed at that time. Over time, the overcapacity has been reduced and prices have come back to a more realistic level. This levelling out of prices has also meant the disparity in prices between the most expensive and the cheapest has been reduced. There are of course bargains to be had even domestically within The UK. Prices in Northern Ireland and remote parts of Scotland tend to be cheaper along with smaller towns in North East England. Urban areas tend to be slightly more expensive than rural ones although this is distorted by the fact that urban centres tend to be larger than those in smaller towns. London and The South East is still the most expensive area but is still in favour as companies have increasingly put more resources towards vendor management. London also tends to be the favoured location for multi-lingual outsourcing despite its higher prices.

Nearshore
The nearshoring options in Eastern Europe have gradually become more expensive as both inflation and economic growth have been higher in the A8 countries than in Western Europe. Currency movements have also been a major influencer with The Polish Zloty now worth £0.25 as opposed to £0.14 only a few years ago.

Asian Pricing
Across Asia, prices (and the corresponding quality) varies dramatically. It’s worth breaking down Asian vendors into 2 distinct groups. The first group is small, locally owned centres focussing primarily on outbound and the second group are larger internationally (normally American) owned vendors. In India, the cost of the premium vendors can be upwards of 100% more expensive. However, the smaller vendors are typically working on a myth which is quite prevalent in parts of Asia than cheaper is better. Agents in these centres will typically speak poor English, have technology not fit for purpose and their management do not understand the complexities of running an international call centre operation. However, there are some very good examples of some high quality smaller vendors in Asia and some of the international vendors who may have impressive looking facilities have been unable to deliver the kind of service you would expect. The case is different in domestic centres where the larger providers are on average 10% cheaper than their smaller equivalents and the difference in quality is much smaller. There has been a worrying trend towards outsourced call centre services being treated as a commodity and in some industries; price can be the sole reason for vendor selection.
We are starting to see the end of pure “cost per acquisition” modes of pricing which become popular on the back of offshoring. Many domestic service providers were able to make hourly equivalent rates which made “commission-only” telemarketing a profitable business.

The Future
Undoubtedly the biggest change over the next 2-3 years will be the move towards more transactional based pricing. At Cyber City’s UK base, we have seen a dramatic increase in companies looking to use our bureau service where they pay either per call or per minute. Much of this is from companies who use such a service when dealing with media responses but much is now also coming from companies wanting to maintain a core UK presence and overflow the calls they can’t deal with. Bureau services were quite popular in the mid-1990’s in The UK but many domestic service providers moved away from offering such services. In the offshore market, there are very few other providers of such bureau services but we expect to see many more follow our lead in this area.

It’s difficult to see how outsourcers both domestically and offshore can withhold the pressure to increase their costs. With inflation for the essentials of life increasing so dramatically, wages for call centre personnel are bound to rise in the not-so-distant future. Even in the domestic hotspots of Northern Ireland, Glasgow and North East England, high demand for staff has increased wages. Offshore, the prices in India have already started to rise with the demand for quality staff outstripping the supply. Of course, there are still many poor quality offshore providers in India, The Philippines and elsewhere whose low prices reflect their desperation to win work and the lack of experience they have.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Customer Service/Call Center Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Agency / Source: Cyber City Teleservices

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick PRZOOM - Press & Newswire Visibility Checker

 

Distribution / Indexing: [+]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Customer Service/Call Center articles,
CATCH Visitors via Your Competitors Announcements!


Cyber City Teleservices Comments on the Changing Dynamics of Outsourced Call Centre Pricing

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name PRZOOM - Press & Newswire and LINK as the source.
 
  For more information, please visit:
Is this your article? Activate ALL web links by Upgrading to Press Release PREMIUM Plan Now!
|
Contact: Rob O'Malley - CCTLL.co.uk 
+44(0)17 8986 8176 romalley[.]cctll.co.uk
 
PRZOOM / PRTODAY - Newswire Today disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Cyber City Teleservices securities in any jurisdiction including any other companies listed or named in this release.

Customer Service/Call Center via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!




Read Latest Press Releases From Cyber City Teleservices / Company Profile


Read Customer Service/Call Center Most Recent Related Press Releases:

Dubai Land Department Boosts Citizen Engagement with Altitude-powered Contact Centre
Upstream Works Receives 2016 Industry Champion Award
Frost & Sullivan Commends Teleperformance Egypt’s Ambitious Expansion Plans in Setting up the First Virtual Contact Centre in Dubai
Frost & Sullivan Commends inConcert for Pioneering Leading-edge Solutions for the Latin American Contact Center Applications Market
Upstream Works Software Awarded 2016 TMC Labs UC Innovation Award
Genesys Honors Partner Award Winners at G-Force 2016 Customer Engagement Conference
Frost & Sullivan Recognizes Five9 with 2016 Customer Value Leadership Award For its Focus on Improving Customer Experience in the Global Cloud Contact
Frost & Sullivan Commends Interactive Intelligence for its Industry-leading Growth in the Cloud Contact Center Applications Market
Genesys Launches Omnichannel Customer Service Benchmarking Tool
Genesys to Acquire Interactive Intelligence to Create the World’s Premier Omnichannel Customer Experience Company

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
 
NewswireToday Celebrates 10 Years in Business
Find business coaching, life coaching, executive coaching and corporate coaching, best selling coaching books, ...



PREMIUM Members


Visit  Triggr & Bloom

Visit  JobsWare.com

Visit  La Bella Bakery Artisan Bakery Arizona







 
  ©2016 PRZOOM — Limelon Advertising, Co.
Home | About PRZOOM | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneur newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today