TMCnet News
Top 10 Things Businesses Need to Know About Offshore Call CentersBy Christa Heibel, President, CH Consulting
If you are doing business with, or as, a call center today you cannot ignore the impact and effects of the offshore sector. It’s become an ever-growing competitor… and threat to American call centers. India, and now other countries, seem determined to master this field. Do they have the ability to succeed? The following ten items are what every business impacted by the telemarketing industry needs to know about offshore call centers.
1. They’re Not Going Away – Despite failures in performance and periodic outcries from consumers, offshoring is not going away. Fees on an average are 50% less than that of American centers, the ROI overrides the performance deficit. With costs that low, many companies are willing to “make it work” to realize these over-all savings. 2. What They Own Abroad AND at Home – As India-based companies continue to purchase American call centers. There are currently, dozens of Indian-owned centers operating in the United States, and dozens more abroad. Outside of India, call centers are now popping up in the Philippines, Dubai, and Puerto Rico, which is only increasing the offshore competition.
3. Their Response to DNC Legislation – The extra costs associated with DNC compliance just don’t have the same impact on offshore centers. Their hourly costs are so low, that even including project-specific federal and state registration fees, they still come to the table with costs at a fraction of those of the American sites. This leaves them better positioned financially to comply with all legislation and fees then the ever increasing penny punching happening with US-based companies.
4. How it has affected the technology sector? – Offshore centers have been buying big technology, trying to catch up and now surpass American centers, giving them any efficiency and performance edge they can buy. American centers just cannot compete with their technology budgets.
5. What is the Future Effect on the Technology Sector? – Now that this technology has been implemented overseas, these offshore companies are poised to possibly take the lead in technology development, potentially moving another piece of the industry offshore. Growing offshore IT development is currently being done at a fraction of the cost.
6. Their Quest for American Managers and Experience – Smart enough to capitalize on existing success, offshore centers continue to pursue long-term industry players in sales, operations and IT through mergers, acquisitions and heavy recruiting. Bringing in experienced personnel can dramatically shorten their learning curve on both project and center set-up.
7. Their Investment – Offshore centers are continually putting money in people, buildings, recruitment and technology, with seemingly unlimited budgets, giving them a competitive edge over the average US company.
8. Their Challenges – American consumers are at times resistant to the language-barrier associated with offshore telemarketers and have a very high expectation for service that offshore companies have to meet. Although overseas centers invest heavily in their staff to learn common American slang, they have not yet been able to replicate the same conversationalism and rapport building that occurs in a US center.
9. Their Advantages – The biggest advantages offshore companies have are financially related: they have more money to spend, and they have low overhead costs. Offshore call centers can pay about $3.00/hour on labor where American centers pay $8 – 15.00/hour. This leaves much more money on the table for these centers to spend on things like technology, recruitment and training.
10. Why it works – American businesses need to fit their ROI into their best marketing plan. Sometimes the numbers are not going to cover American company costs, however no one wants to be responsible for the long-term decision of cutting an effective medium, such as the telephone, from their sales and marketing plans and future. Businesses will just continue to spend what their budgets and boards allow… even if that means they have to go off shore to afford it.
Ms. Christa Heibel
Chief Executive Officer, CH Consulting LLC
www.chconsultingllc.com
Christa Heibel is the CEO of CH Consulting, LLC. Still in her early thirties, Christa has led CH Consulting to revenue growth of over 4,000 percent in the past year. Christa is regarded as an expert in the field of integrated marketing campaigns as well as effectively using technology for supporting sales and marketing efforts.
An accomplished speaker, writer and sales trainer, Christa is looking forward to leading her company into continued growth over the next few years. She continues her commitment to staying active in the political arena, and plans to expand CH Consulting to actively managing telemarketing and other outreach campaigns for public officials.
www.chconsultingllc.com
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