New Editorial : Outsourcing , An Explanation
Posted by danielcurry on 26 October 2001 - 20:18 · no comments & 119 views
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Outsourcing technical support and customer care operations has become increasingly popular in the IT and Software arenas in recent years. Whilst the benefits and cost savings to companies are obvious, what effects does this have on customers and the service they receive ? Is outsourcing an easy-way out ? or does it offer real value to the end user. These are the questions which I will attempt to answer in this , NeoWin.net exclusive.
Outsourcing : What ?
Outsourcing refers to the practice of hiring another company to provide certain services to another. In the IT and software industry, the main outsourced services are technical support and customer care aspects which are seen merely as an unfortunate overhead by most companies , who generally opt to leave sales and marketing operations to the in-house professionals .
The following example from Client Logic explains in further details what outsourcing is;
We work "behind the scenes," so essentially, if you call Zales.com for customer support or Chat online with a Microsoft tech support agent, you may be talking with a highly trained ClientLogic Customer Care associate. If you place an order with Maxim Books (DDM Press), it may be packaged and shipped from a ClientLogic warehouse. For many of our clients, we offer a complete support solution, providing everything from acquisition promotions through to customer care, fulfillment and retention marketing. All of our services are powered by integrated technologies to deliver maximum efficiency, convenience and personalization.
Outsourcing : What Advantages For Companies ?
As is the case in almost every business decision , opting to outsource technical support and customer care operations is generally a matter of costs. It is far easier and indeed cheaper, for a company to employ the services of an outsource provider who also has the technology and infrastructure in place to provide these services. Unfortunately the notion of overall client satisfaction is not a major concern for companies availing of the services of outsource providers.
Outsourcing : Who provides it ?
Outsourcing has become big business , among the companies providing it are ;
Client Logic
Seanto
Zomax
Navisys
These companies generally operate their call centres in various locations worldwide , so as to provide multi-lingual capabilities to their clients
Outsourcing : Who uses it ?
Originally the preserve of dot coms and start-up businesses , outsourcing is now practiced by some major renowned companies. Among them ;
Sony
Hewlett Packard
Microsoft
HandSpring
Gateway
Logitech
Micron Pc
Outsourcing : Customer Impact ?
The impact of outsourced customer care can be many and varied, there are many companies specializing in outsourced services , some do it very well - some do it very bad. It stands to reason that if xyz limited employs the services of an outsource provider and provides little backup and pays the minimum the impact on the level of customer services could be dire.
There are however , as already mentioned , companies which provide outsource services and do it very well. Client Logic for example has been billed as one such company and handling over 38.2 million customer care calls in 2000 on behalf of its clients , the numbers certainly speak for themselves.