A call center is an office where a company's inbound calls are
received, or
outbound calls are made. Call centers are increasingly popular in
today's
society, where many companies have centralized customer service and
support
functions. Call centers employ many staff in customer service, sales
and
support functions.
Call centers are often large offices staffed with representatives who
either
make or receive phone calls. Depending on the size of the call center,
a
single office could have anywhere from a few dozen to hundreds of
telephone
staff. Depending on the needs of the company, call centers can make
either
incoming or outgoing calls. Some call centers focus on answering
inbound
calls, such as a bank that gives out a toll-free number for customers
needing assistance. In that case, call center representatives can give
account balances and take loan applications over the phone. Other call
centers focus on outbound calls, such as a survey company. In that
case,
survey representatives make outbound calls to ask people to answer
survey
questions over the phone.
Call centers provide a number of advantages to companies. By
centralizing
telephone-based service and support in one location, companies can
easily
adjust staffing to match call volume. Call centers can be located
almost
anywhere, allowing companies to take advantage of time zones and
cheaper
labor rates in different states and countries. Call centers also
centralize
the technology needs of companies, allowing major telecommunications
setups
to be installed in a small handful of call centers instead of a number
of
smaller offices, making upgrades and training easier to complete.
Many call centers use a number of different technologies to help
improve
performance and customer experience. Inbound call centers often use
automatic call distribution, in which incoming calls are assigned to
representatives on the order they are received. Other call centers
utilize
call monitoring, in which customer calls are randomly monitored by
quality
assurance staff to ensure that phone representatives meet customer
needs.
Call center technology evolves constantly, helping call center staff
assist
customers more efficiently and effectively.
Call centers have been increasingly popular as outsourcing increases.
With
outsourcing, companies contract out some functions to other companies.
As it
can be expensive to maintain call center equipment and staff, some
companies
choose to outsource their telephone functions to an external call
center. In
this case, external call center staff can be trained to answer phone
calls
from a number of different companies.
*** Call centers combine the use of highly effective and empowered
company
representatives with a service framework that relies heavily on
state-of-the-art communications and in formation technologies. A call
center
is sometimes defined as a telephone based shared service center for
specific
customer activities and are used for number of customer related
functions
like marketing, selling, information dispensing, advice, technical
support
etc. Thus, a call center is a service center which has adequate telecom
facilities, trained consultants, access to wide database, Internet and
other
on-line in for mation support infrastructure to provide in for mation
and
support to customers. It operates to provide round the clock and year
round
service i.e.24 x 365 service
The use of call center is undergoing enormous growth due to importance
attached by companies to customer care, telemarketing for product
offerings,
telebanking, concept of direct response television and home shopping,
market
liberalization of utilities, growth of direct marketing etc. In
addition,
telemarketing is growing and in for mation lines are forming part of
many
product service offerings. Telephone banking has led to call center
growth
in the financial services sector, while in retail the increase in
direct
response television and home shopping have driven call center growth.
Market
liberalization of utilities has also been a key driver of call center
growth. Finally, the growth of direct marketing has also contributed to
the
popularity of call centers as a means of reaching targeted customer
bases.
Call Centers provide large and small international enterprises with the
unique ability to establish a presence in foreign markets without the
expense and complexity of owning and managing their own infrastructure.
A call center with good metrics and good data capture abilities
represents a
credible marketplace intelligence system. A call center can be seen as
a
window to the marketplace and is also a window to the client
organization
allowing call center operators to see weakness in client organizations
that
could represent business opportunities in future.
Call center originally conceived as a separate and individual
distribution
channel of customer care system has been transformed into integrated
customer management system. With the enabling of integration of call
center
and Internet technology, call centers of future will handle telephone,
fax,
web, Internet and interactive TV enquiries on 24x7 basis. These
combined
Internet Call Centers or 'Customer Contact Centers' will shape the
future of
call center design.
*What does a Call Center do for an Organization? *
- It allows a wider customer base to do business with.
- It offers an economical means of reaching diverse and widely
distributed customer group.
- It fine-tunes offerings to specific customer groups.
- It allows customers easy access to experts.
- It facilitates business round the clock and in any geography.
- It allows a company to avoid the overheads of brick and mortar
branches.
*Types of Call Centers *
Call Centers could either be *'captive In-house' *or using an
*'Outsourced
bureau'. *
Captive Call Centers are typically used for various vertical segments
like
Insurance, Investments and Securities, Retail Banking, Other
Financials,
Telecommunications, Technology, Utilities, Manufacturing, Travel and
Tourism, Transport, Entertainment, Healthcare, Government, Education
etc.
Outsourcing Bureaus have experience in running call centers, allow
corporations to 'Hit the Ground running', help in dealing with a
complex
labour market, better capability to handle volatility, tend to use the
latest technology, lowers the company's operating expenses, offers a
way of
cost control and limits the client's financial risks, are responsive to
their clients needs and allow the client to focus on their core
competencies.
Many companies find that outsourced bureau operators offer them the
flexibility required in the following manner:
- *Set-up outsourcing. *This involves use of a bureau in the early
stages of the call center life cycle. Having used a bureau for
set-up, some
companies later bring the process in-house, while others continue to
outsource on a longer-term basis.
- *Transitional Outsourcing. *This involves use of a bureau during
the
period when internal infrastructure is being revamped or
re-engineered.
- *Overflow outsourcing. *A bureau is often an attractive option for
a
company when the demand on the company's own call center is too high
for its
current capacity. The use of a bureau operator in such circumstances
ensures
that the company does not have to ramp up during peak demand
periods.
Companies may also use bureaus for 'out of hour' demand. In this
case, the
ability of a call center operator to mix time zones offers a
competitive
advantage.
- *One-off. *For applications such as direct response advertising
that
requires a call center on a one-off, short-term basis, bureau offers
the
best option. Many companies prefer to outsource the handling of
direct
marketing campaigns rather than invest in new technologies,
especially for
limited period campaigns. Examples of such requirements would be
marketing
campaigns, special issues such as recalls, or anything that
generates spikes
and large call volumes. Other examples could be where a company was
testing
a new business initiative, new product or a new marketplace.
- *Long-term outsourcing. *This may entail the entire outsourcing of
the operations.
Outsourced call center may further be classified based on:
- The delivery channel or mode of customer-call center interaction
e.g.
Voice, E-Mail, Chat, Web Call Back, Web Call through, Web
Collaboration,
WAP, Touch Screen etc.
- Components / features constituting the call center e.g. Customer
Relationship Managements (CRM), Workforce Management, Computer
Telephony
Integration (CTI), Integrated Call Management etc.
- Location of its target customer.
*Potential Customers *
Potential Customer industries for call centers are essentially those
industries which require customer interface and transactions success is
based entirely on in for mation availability. These industries include:
- Airlines
- Banks / Insurance / Financial Services boutiques to provide
services
to the customers / callers
- Telecom services
- Companies providing customized and high value services
- IT products companies
- Tourism & Hotels
- Other services industries
*Market Size *
According to a survey, there are more than 100,000 call centers
worldwide
and this is expected to grow to 300,000 by 2002 employing approximately
18
million people. By year 2003 a sum of US$60 billion is expected to be
spent
on call center services, mainly driven by e-commerce.
As per a survey conducted by Nasscom, Customer Interaction Services
including Call Centers in India employed about 10,000 people as on 30
July
2000 generating annual revenue of Rs. 450 crore. It is estimated that
during
2008, this segment will create employment for 2,70,000 people
generating
revenues of Rs.20, 000 crore.
*Industry Structure *
The potential market of immediate relevance to service providers in
India is
USA. During 1997, and continuing into 1998, USA, as an industry as well
as
trendsetter in shifts in technologies and practices, has experienced
significant changes that have been making substantial difference to
conventional business logic and vendor-customer relationship.
Advancing technology has fueled growth among several product segments;
but
resistance has been seen coming from the user sector — which is
impeding
more remarkable growth. This essentially is driven by increasingly felt
need
of customers to critically work out the cost benefit analysis,
opportunity
costs and other more viable options available.
Most of the recent trends in this industry pertain to the technology
behind
the call routing and distribution function. Some of these trends will
continue, and include the following:
- Shift from proprietary to open architectural plat for ms is
rapidly
gaining acceptance as is exemplified by vendors' frequent
introductions of
PC-based routing and call management software.
- A shift toward the "complete package" or "turnkey" solution is
boosted by this trend to open plat for ms which allows for easier
integration with existing systems. The growth in turnkey solutions
is also
driven by a high level of customer demand.
- In addition to the formal call center setup, demand for this
industry-standards based, open architecture is seen by those types
of call
centers operating in more "non-traditional" environments. For
example: SOHO,
virtual call centers, telecommuting, etc.
- Price decline for products perceived as commodities (due to level
of
technology and knowledge sharing).
Besides the above developments, call center technologies are making a
rapid
shift from mere stringing together of boxes and wires to, more
intelligent
and manageable solution. For example, select companies in India have
already
developed extremely competitive and technologically advanced call
center
solutions based entirely on PC technologies and platforms, and IP
technologies. This helps to reduce the cost of the system and reduces
changeover or upgradation costs for the new technologies as a major
portion
of technology is derived from software. These are highly automated call
centers.
Influences upon the call center market structure have approached from
various directions to such a degree as to create flux. These
persuasions are
steering the market through a shake-out phase, culminating in a leaner
and
more competitive market within the United States. This would also mean
vendors as well as customers looking to reduce their costs and
outsourcing
their requirements /contracts to such call center service providers who
can
help to add and continually enhance competitive advantage.
*Criteria for location of call centers *
The choice of location of a call center by overseas MNC's is based on a
number of factors and include:
1. Laws and Regulations.
2. Telecommunication Infrastructure, Technology & Tariffs - India is
perceived as technologically savvy but with keen desire to emerge as
a
country with sound telecommunication infrastructure. Therefore,
technology
is an important deciding factor in location decision. Similarly,
tariff is
another significant factor. There are also issues of connectivity
(to PSTN
etc.) that need to be addressed by the government quickly.
3. Work force - Companies look to countries that can provide them
with
work force that is proficient in English (and possibly other
languages);
cost effective with disciplined work culture.
4. Real Estate, Availability and cost of office space.
5. Economic Incentives - These may take the form of grants or tax
exemptions, repatriation of profits, corporate tax on profits
generated by
call centers, tax treaties etc.
6. Feel-good factor- Companies look for countries where the people
are
positive, service minded and friendly.
*Call Center Technology Suppliers *
Some of the suppliers of Call Center technology are as follows. This is
just
an indicative list:
- *Hardware:* Aspect, Clarify, Brightware, Cisco (webline)Convergys,
Corepoint, Dialogic, e-Gain, eShare, Genesysd, Kana (including
Silknet),
Lucent, Nortel, Quintus, Rockwell, ServiceSoft, Siemens etc.
- *Software:* AnswerSoft, Brooktrout, Edify, eFusion, Genesys Labs,
Geotel, IBM/Lotus, Intecom, KnowledgeX, Microsoft, Multilink,
Nabnasset,
Netcentric, Netphone, NetSpeak, Oracle, Paresc, Scopus, Sitel
Corporation,
SpanLink, Sun, Teloquent, Vantive, Venturian, Voicetek, Webline etc.
*Setting up a Call Center *
Establishment of a call center needs efficient integration and
management of
telecom and IT infrastructure. The main elements constituting a call
center
are telecommunication links (IPLC, typically E1 Link), call center
infrastructure (hardware in the for m of LAN, Agent PCs, Headsets) and
the
requisite software (CRM).
The decision process should typically include the following sequence:
- Define Business requirement
- Define Decision Criteria
- Research options and deduce
- Evaluate options against decision criteria and business
requirements
- Pursue vendors of technology along chosen path viz. Technology
Vendors for In-house call centers, Service Bureaus for outsourcing
entirely,
and ASPs for outsourcing technology.
*Decision criteria. *Some key criteria to consider and define for your
environment are listed below:
- *Operations. *What operational environment you want to use for
call
support? What media functions, applications, and hours of coverage
are
required?
- *Technology. *What infrastructure is needed to meet business
goals?
Are you in the process of procuring technology solutions like CRM,
CTI that
web integration may be part of or need to integrate with?
- *Resource. *Consider Call Center staff and management, technology,
HR training etc.
- *Workload. *Volumes and variability of volumes. How are they
likely
to grow?
- *Culture. *Some companies need control of technology, staff or
both
in order to deliver the level and type of service and support they
desire.
- *Cost. *What are the investment priorities? Consider the cost of
technology, resources and ongoing maintenance and support.
- *Core Competencies. *Are call centers core competency for your
company, or will they be? Consider technology implementation,
integration,
development and management
*Systems Selection. *In the race to gain a competitive edge in this
market,
it is easy to be seduced by an advancing technology. In doing so, many
companies lose sight of the ultimate business goal: to become more
competitive, productive and efficient in providing the most effective
customer service. It is important to look carefully at the call
center's
real technology needs, vendor selection, and the possibility of
increasing
the efficiency of a technology project by rethinking the organization
be
forehand.
The technological systems choices while setting up call centers
include:
1. Entry options ranging from traditional voice, e-mail, internet
for
ms, web triggered calls, fax and video
2. Desktop tools including knowledge based systems (AI), electronic
documentation, new contact management applications and CTI and
screen based
telephony;
3. Resource locations ranging from home agents to centralized or
decentralized centers;
4. Service options ranging from self-help or assisted services via
Internet, voice response units, fax back systems, and electronic
technical
support forums. Introducing the right technology will benefit every
component of a call center including training, staffing, scripting,
customer
relations, tracking and reporting etc.
*Proven Success Factors *
Operation of a Call Center revolves around serving an existing and
potential
customer base. This need translates into providing satisfying and well
in
formed responses to a customer query, or in case of a potential
customer,
meeting his expectations with regard to quality and quantity of
service. The
difference in services can be made through a number of factors. Some of
them
are discussed as below:
- *Process Integration:* The call center service flow should be
closely integrated with the process of customer for whom this
service is
being rendered. This translates into easy access to and presentation
of
updated information.
- *Customer Satisfaction:* Defined as Direct-to-Quality (DTQ), this
is
akin to ability to satisfying the customer's (callers) query the
first time.
- *Responses Time:* Waiting period and responses time for a query
should be minimized. The only way is by benchmarking against some of
the
best call center operations in the world.
- *Quality:* Vendors should aim to achieve quality certification
such
as ISO 9000 or other certification applicable to this industry. This
includes full COPC-2000 Certification (COPC - Customer Outsourcing
Performance Center). This distinction means that the facility has
met the
requirements of all 32 areas described in the COPC-2000 Standard. It
thus
helps to validate call center's quality and continuous improvement
initiatives.
- *Professional Service:* The quality of service rendered by an
outsourced call centers should be equal to or exceed service levels
already
achieved by the client's in-house call center.
- *Employees:* Call Center staff should be trained on the client's
business, the role of the call center, nature of potential callers,
and
service expectations of the client.
- *Accent and Fluency:* Call Center staff needs to be constantly
trained to help improve accent and diction capabilities, especially
for
region being served.
*Cost / Profit Analysis *
A call center facility with seating capacity of 100 persons is
estimated to
cost between Rs.4 to 4.5 crore including premises, leased circuits,
hardware
and software.
*Call Centers in India *
In the last couple of years, India has emerged as one of the preferred
countries for setting up of call centers. Many companies including GE,
iDLX,
Bechtel, British Airways, Dell Computers, Bharti Telecom have already
chosen
India as the base for their new global call centers. These are choices
made
for solid, practical reasons that guarantee them competitive advantage
in
the global marketplace. Many banks - ICICI, HDFC, Standard Chartered,
Citicorp, American Express to name a few- telecom service providers and
infotech companies - Lotus, Hewlett Packard, 3Com etc. have deployed
call
centers for better customer support and care.
*Guidelines from Department of Telecommunications *
In India, Call Center operators have to get a no objection certificate
from
Deputy Director General (Customer Relations) at Department of
Communications, Government of India, New Delhi. This NOC is granted
with the
aim of granting a special permission to use voice circuits over
international gateways with the dedicated and stated purpose of serving
overseas customers, and accompanied by an undertaking that it will not
be
connected to a PSTN within India.
The Government of India has released a set of Terms / Conditions for
Call
Center operators in India. The new policy initiatives are aimed at
liberalizing Call Center operations in India. Some of the salient
points of
the policy are as under:
The Call Centers are being permitted on nonexclusive basis against the
requests received from IT Service providers. These call centers can
either
be international or domestic in nature.
- However, no interconnectivity of the international and domestic
call
centers is permitted. But, interconnection of two domestic call
centers of
the same company is permissible, subject to prior approval of the
DoT.
- The International Call Centers will be permitted on IPLCs
(International Private Leased Circuits) only and will cater to calls
from
foreign end PSTN (Public Switched Telephone Network). However, no
PSTN
connectivity will be permitted at the Indian end. At Indian end,
even
linking to any private or public network is not permitted for IPLC,
even if
it is of the same organization.
- The domestic call center can have PSTN connectivity at one end or
both ends or at multipoint in a more complex configuration, with
only
incoming and with outgoing disabled at all places, wherever PSTN
termination
is provided.
- No other interconnectivity, except as permitted above, with any
public or private network, shall be permitted to the call center set
up.
Nasscom welcomes the above initiative announced by DoT. This is
expected to
give boost to proliferation of call centers in India. However, there is
a
strong need to permit PSTN connectivity at the Indian end, to
international
call centers as well as for software companies in India (who provide
software support from India). This is important not only for large
establishments of international call centers ( a great source of export
revenue and employment) but also to encourage software companies to
enable
their employees to per form as teleworkers. Nasscom is presently
working
with concerned authorities to resolve this issue. It is also desired
that
domestic and international Call Centers be permitted interconnectivity.
Actually, there should be no distinction between them.
*Marketing *
Call Center services are provided to clients customers on the basis of
a
long term contract (running upto 2-4 years or more). Therefore, it is
advisable to approach clients directly. This may be effected through
establishing a branch office / subsidiary in USA or any other export
market.
It is also advisable to appoint a local person as a senior / head
executive
of the office as it helps to increase comfort level of the target
customer(s). Further, in order to attract initial customers, it may be
worthwhile to operate on Build-Own - Operate- Transfer basis. Companies
may
also bear in mind that it is easier to sell services by having a
functional
'proof of concept'. In other words, a functional call center,
preferably
operating closer to service levels expected by the customer. Such
concerns
may be common as call centers represent interaction in real time and
companies would not appreciate any faux pas in such interactions.
However, companies may also consider establishing and managing
facilities
for a large call center Services Company or even enter into a joint
venture
agreement. This would help ensure profitability as well as growth. The
call
center is also a viable business proposition as it is considered to be
a
good launch pad for other service areas in various segments of the
value
chain and thus providing end-to-end platform for virtual value chain.
Nasscom plans to lead a Call Center delegation every six-month to
Europe and
USA. This is expected to bring in a lot of business to India.
*Summary *
Call Centers have clearly emerged as one of the most favored of all IT
enabled services. On one hand, this is due to the success and
prominence
achieved by call centers already operating in India. On the other hand,
global call center industry has proven to be amongst the most stable
revenue
growth centers amongst all related services. The enthusiasm of global
corporations as well as domestic entrepreneurs is validated by some of
the
inherent advantages enjoyed by India. Further encouragement through
proactive encouragement by Government of India to promote this industry
augurs well for India emerging as the preferred choice for setting up
call
centers in India.
received, or
outbound calls are made. Call centers are increasingly popular in
today's
society, where many companies have centralized customer service and
support
functions. Call centers employ many staff in customer service, sales
and
support functions.
Call centers are often large offices staffed with representatives who
either
make or receive phone calls. Depending on the size of the call center,
a
single office could have anywhere from a few dozen to hundreds of
telephone
staff. Depending on the needs of the company, call centers can make
either
incoming or outgoing calls. Some call centers focus on answering
inbound
calls, such as a bank that gives out a toll-free number for customers
needing assistance. In that case, call center representatives can give
account balances and take loan applications over the phone. Other call
centers focus on outbound calls, such as a survey company. In that
case,
survey representatives make outbound calls to ask people to answer
survey
questions over the phone.
Call centers provide a number of advantages to companies. By
centralizing
telephone-based service and support in one location, companies can
easily
adjust staffing to match call volume. Call centers can be located
almost
anywhere, allowing companies to take advantage of time zones and
cheaper
labor rates in different states and countries. Call centers also
centralize
the technology needs of companies, allowing major telecommunications
setups
to be installed in a small handful of call centers instead of a number
of
smaller offices, making upgrades and training easier to complete.
Many call centers use a number of different technologies to help
improve
performance and customer experience. Inbound call centers often use
automatic call distribution, in which incoming calls are assigned to
representatives on the order they are received. Other call centers
utilize
call monitoring, in which customer calls are randomly monitored by
quality
assurance staff to ensure that phone representatives meet customer
needs.
Call center technology evolves constantly, helping call center staff
assist
customers more efficiently and effectively.
Call centers have been increasingly popular as outsourcing increases.
With
outsourcing, companies contract out some functions to other companies.
As it
can be expensive to maintain call center equipment and staff, some
companies
choose to outsource their telephone functions to an external call
center. In
this case, external call center staff can be trained to answer phone
calls
from a number of different companies.
*** Call centers combine the use of highly effective and empowered
company
representatives with a service framework that relies heavily on
state-of-the-art communications and in formation technologies. A call
center
is sometimes defined as a telephone based shared service center for
specific
customer activities and are used for number of customer related
functions
like marketing, selling, information dispensing, advice, technical
support
etc. Thus, a call center is a service center which has adequate telecom
facilities, trained consultants, access to wide database, Internet and
other
on-line in for mation support infrastructure to provide in for mation
and
support to customers. It operates to provide round the clock and year
round
service i.e.24 x 365 service
The use of call center is undergoing enormous growth due to importance
attached by companies to customer care, telemarketing for product
offerings,
telebanking, concept of direct response television and home shopping,
market
liberalization of utilities, growth of direct marketing etc. In
addition,
telemarketing is growing and in for mation lines are forming part of
many
product service offerings. Telephone banking has led to call center
growth
in the financial services sector, while in retail the increase in
direct
response television and home shopping have driven call center growth.
Market
liberalization of utilities has also been a key driver of call center
growth. Finally, the growth of direct marketing has also contributed to
the
popularity of call centers as a means of reaching targeted customer
bases.
Call Centers provide large and small international enterprises with the
unique ability to establish a presence in foreign markets without the
expense and complexity of owning and managing their own infrastructure.
A call center with good metrics and good data capture abilities
represents a
credible marketplace intelligence system. A call center can be seen as
a
window to the marketplace and is also a window to the client
organization
allowing call center operators to see weakness in client organizations
that
could represent business opportunities in future.
Call center originally conceived as a separate and individual
distribution
channel of customer care system has been transformed into integrated
customer management system. With the enabling of integration of call
center
and Internet technology, call centers of future will handle telephone,
fax,
web, Internet and interactive TV enquiries on 24x7 basis. These
combined
Internet Call Centers or 'Customer Contact Centers' will shape the
future of
call center design.
*What does a Call Center do for an Organization? *
- It allows a wider customer base to do business with.
- It offers an economical means of reaching diverse and widely
distributed customer group.
- It fine-tunes offerings to specific customer groups.
- It allows customers easy access to experts.
- It facilitates business round the clock and in any geography.
- It allows a company to avoid the overheads of brick and mortar
branches.
*Types of Call Centers *
Call Centers could either be *'captive In-house' *or using an
*'Outsourced
bureau'. *
Captive Call Centers are typically used for various vertical segments
like
Insurance, Investments and Securities, Retail Banking, Other
Financials,
Telecommunications, Technology, Utilities, Manufacturing, Travel and
Tourism, Transport, Entertainment, Healthcare, Government, Education
etc.
Outsourcing Bureaus have experience in running call centers, allow
corporations to 'Hit the Ground running', help in dealing with a
complex
labour market, better capability to handle volatility, tend to use the
latest technology, lowers the company's operating expenses, offers a
way of
cost control and limits the client's financial risks, are responsive to
their clients needs and allow the client to focus on their core
competencies.
Many companies find that outsourced bureau operators offer them the
flexibility required in the following manner:
- *Set-up outsourcing. *This involves use of a bureau in the early
stages of the call center life cycle. Having used a bureau for
set-up, some
companies later bring the process in-house, while others continue to
outsource on a longer-term basis.
- *Transitional Outsourcing. *This involves use of a bureau during
the
period when internal infrastructure is being revamped or
re-engineered.
- *Overflow outsourcing. *A bureau is often an attractive option for
a
company when the demand on the company's own call center is too high
for its
current capacity. The use of a bureau operator in such circumstances
ensures
that the company does not have to ramp up during peak demand
periods.
Companies may also use bureaus for 'out of hour' demand. In this
case, the
ability of a call center operator to mix time zones offers a
competitive
advantage.
- *One-off. *For applications such as direct response advertising
that
requires a call center on a one-off, short-term basis, bureau offers
the
best option. Many companies prefer to outsource the handling of
direct
marketing campaigns rather than invest in new technologies,
especially for
limited period campaigns. Examples of such requirements would be
marketing
campaigns, special issues such as recalls, or anything that
generates spikes
and large call volumes. Other examples could be where a company was
testing
a new business initiative, new product or a new marketplace.
- *Long-term outsourcing. *This may entail the entire outsourcing of
the operations.
Outsourced call center may further be classified based on:
- The delivery channel or mode of customer-call center interaction
e.g.
Voice, E-Mail, Chat, Web Call Back, Web Call through, Web
Collaboration,
WAP, Touch Screen etc.
- Components / features constituting the call center e.g. Customer
Relationship Managements (CRM), Workforce Management, Computer
Telephony
Integration (CTI), Integrated Call Management etc.
- Location of its target customer.
*Potential Customers *
Potential Customer industries for call centers are essentially those
industries which require customer interface and transactions success is
based entirely on in for mation availability. These industries include:
- Airlines
- Banks / Insurance / Financial Services boutiques to provide
services
to the customers / callers
- Telecom services
- Companies providing customized and high value services
- IT products companies
- Tourism & Hotels
- Other services industries
*Market Size *
According to a survey, there are more than 100,000 call centers
worldwide
and this is expected to grow to 300,000 by 2002 employing approximately
18
million people. By year 2003 a sum of US$60 billion is expected to be
spent
on call center services, mainly driven by e-commerce.
As per a survey conducted by Nasscom, Customer Interaction Services
including Call Centers in India employed about 10,000 people as on 30
July
2000 generating annual revenue of Rs. 450 crore. It is estimated that
during
2008, this segment will create employment for 2,70,000 people
generating
revenues of Rs.20, 000 crore.
*Industry Structure *
The potential market of immediate relevance to service providers in
India is
USA. During 1997, and continuing into 1998, USA, as an industry as well
as
trendsetter in shifts in technologies and practices, has experienced
significant changes that have been making substantial difference to
conventional business logic and vendor-customer relationship.
Advancing technology has fueled growth among several product segments;
but
resistance has been seen coming from the user sector — which is
impeding
more remarkable growth. This essentially is driven by increasingly felt
need
of customers to critically work out the cost benefit analysis,
opportunity
costs and other more viable options available.
Most of the recent trends in this industry pertain to the technology
behind
the call routing and distribution function. Some of these trends will
continue, and include the following:
- Shift from proprietary to open architectural plat for ms is
rapidly
gaining acceptance as is exemplified by vendors' frequent
introductions of
PC-based routing and call management software.
- A shift toward the "complete package" or "turnkey" solution is
boosted by this trend to open plat for ms which allows for easier
integration with existing systems. The growth in turnkey solutions
is also
driven by a high level of customer demand.
- In addition to the formal call center setup, demand for this
industry-standards based, open architecture is seen by those types
of call
centers operating in more "non-traditional" environments. For
example: SOHO,
virtual call centers, telecommuting, etc.
- Price decline for products perceived as commodities (due to level
of
technology and knowledge sharing).
Besides the above developments, call center technologies are making a
rapid
shift from mere stringing together of boxes and wires to, more
intelligent
and manageable solution. For example, select companies in India have
already
developed extremely competitive and technologically advanced call
center
solutions based entirely on PC technologies and platforms, and IP
technologies. This helps to reduce the cost of the system and reduces
changeover or upgradation costs for the new technologies as a major
portion
of technology is derived from software. These are highly automated call
centers.
Influences upon the call center market structure have approached from
various directions to such a degree as to create flux. These
persuasions are
steering the market through a shake-out phase, culminating in a leaner
and
more competitive market within the United States. This would also mean
vendors as well as customers looking to reduce their costs and
outsourcing
their requirements /contracts to such call center service providers who
can
help to add and continually enhance competitive advantage.
*Criteria for location of call centers *
The choice of location of a call center by overseas MNC's is based on a
number of factors and include:
1. Laws and Regulations.
2. Telecommunication Infrastructure, Technology & Tariffs - India is
perceived as technologically savvy but with keen desire to emerge as
a
country with sound telecommunication infrastructure. Therefore,
technology
is an important deciding factor in location decision. Similarly,
tariff is
another significant factor. There are also issues of connectivity
(to PSTN
etc.) that need to be addressed by the government quickly.
3. Work force - Companies look to countries that can provide them
with
work force that is proficient in English (and possibly other
languages);
cost effective with disciplined work culture.
4. Real Estate, Availability and cost of office space.
5. Economic Incentives - These may take the form of grants or tax
exemptions, repatriation of profits, corporate tax on profits
generated by
call centers, tax treaties etc.
6. Feel-good factor- Companies look for countries where the people
are
positive, service minded and friendly.
*Call Center Technology Suppliers *
Some of the suppliers of Call Center technology are as follows. This is
just
an indicative list:
- *Hardware:* Aspect, Clarify, Brightware, Cisco (webline)Convergys,
Corepoint, Dialogic, e-Gain, eShare, Genesysd, Kana (including
Silknet),
Lucent, Nortel, Quintus, Rockwell, ServiceSoft, Siemens etc.
- *Software:* AnswerSoft, Brooktrout, Edify, eFusion, Genesys Labs,
Geotel, IBM/Lotus, Intecom, KnowledgeX, Microsoft, Multilink,
Nabnasset,
Netcentric, Netphone, NetSpeak, Oracle, Paresc, Scopus, Sitel
Corporation,
SpanLink, Sun, Teloquent, Vantive, Venturian, Voicetek, Webline etc.
*Setting up a Call Center *
Establishment of a call center needs efficient integration and
management of
telecom and IT infrastructure. The main elements constituting a call
center
are telecommunication links (IPLC, typically E1 Link), call center
infrastructure (hardware in the for m of LAN, Agent PCs, Headsets) and
the
requisite software (CRM).
The decision process should typically include the following sequence:
- Define Business requirement
- Define Decision Criteria
- Research options and deduce
- Evaluate options against decision criteria and business
requirements
- Pursue vendors of technology along chosen path viz. Technology
Vendors for In-house call centers, Service Bureaus for outsourcing
entirely,
and ASPs for outsourcing technology.
*Decision criteria. *Some key criteria to consider and define for your
environment are listed below:
- *Operations. *What operational environment you want to use for
call
support? What media functions, applications, and hours of coverage
are
required?
- *Technology. *What infrastructure is needed to meet business
goals?
Are you in the process of procuring technology solutions like CRM,
CTI that
web integration may be part of or need to integrate with?
- *Resource. *Consider Call Center staff and management, technology,
HR training etc.
- *Workload. *Volumes and variability of volumes. How are they
likely
to grow?
- *Culture. *Some companies need control of technology, staff or
both
in order to deliver the level and type of service and support they
desire.
- *Cost. *What are the investment priorities? Consider the cost of
technology, resources and ongoing maintenance and support.
- *Core Competencies. *Are call centers core competency for your
company, or will they be? Consider technology implementation,
integration,
development and management
*Systems Selection. *In the race to gain a competitive edge in this
market,
it is easy to be seduced by an advancing technology. In doing so, many
companies lose sight of the ultimate business goal: to become more
competitive, productive and efficient in providing the most effective
customer service. It is important to look carefully at the call
center's
real technology needs, vendor selection, and the possibility of
increasing
the efficiency of a technology project by rethinking the organization
be
forehand.
The technological systems choices while setting up call centers
include:
1. Entry options ranging from traditional voice, e-mail, internet
for
ms, web triggered calls, fax and video
2. Desktop tools including knowledge based systems (AI), electronic
documentation, new contact management applications and CTI and
screen based
telephony;
3. Resource locations ranging from home agents to centralized or
decentralized centers;
4. Service options ranging from self-help or assisted services via
Internet, voice response units, fax back systems, and electronic
technical
support forums. Introducing the right technology will benefit every
component of a call center including training, staffing, scripting,
customer
relations, tracking and reporting etc.
*Proven Success Factors *
Operation of a Call Center revolves around serving an existing and
potential
customer base. This need translates into providing satisfying and well
in
formed responses to a customer query, or in case of a potential
customer,
meeting his expectations with regard to quality and quantity of
service. The
difference in services can be made through a number of factors. Some of
them
are discussed as below:
- *Process Integration:* The call center service flow should be
closely integrated with the process of customer for whom this
service is
being rendered. This translates into easy access to and presentation
of
updated information.
- *Customer Satisfaction:* Defined as Direct-to-Quality (DTQ), this
is
akin to ability to satisfying the customer's (callers) query the
first time.
- *Responses Time:* Waiting period and responses time for a query
should be minimized. The only way is by benchmarking against some of
the
best call center operations in the world.
- *Quality:* Vendors should aim to achieve quality certification
such
as ISO 9000 or other certification applicable to this industry. This
includes full COPC-2000 Certification (COPC - Customer Outsourcing
Performance Center). This distinction means that the facility has
met the
requirements of all 32 areas described in the COPC-2000 Standard. It
thus
helps to validate call center's quality and continuous improvement
initiatives.
- *Professional Service:* The quality of service rendered by an
outsourced call centers should be equal to or exceed service levels
already
achieved by the client's in-house call center.
- *Employees:* Call Center staff should be trained on the client's
business, the role of the call center, nature of potential callers,
and
service expectations of the client.
- *Accent and Fluency:* Call Center staff needs to be constantly
trained to help improve accent and diction capabilities, especially
for
region being served.
*Cost / Profit Analysis *
A call center facility with seating capacity of 100 persons is
estimated to
cost between Rs.4 to 4.5 crore including premises, leased circuits,
hardware
and software.
*Call Centers in India *
In the last couple of years, India has emerged as one of the preferred
countries for setting up of call centers. Many companies including GE,
iDLX,
Bechtel, British Airways, Dell Computers, Bharti Telecom have already
chosen
India as the base for their new global call centers. These are choices
made
for solid, practical reasons that guarantee them competitive advantage
in
the global marketplace. Many banks - ICICI, HDFC, Standard Chartered,
Citicorp, American Express to name a few- telecom service providers and
infotech companies - Lotus, Hewlett Packard, 3Com etc. have deployed
call
centers for better customer support and care.
*Guidelines from Department of Telecommunications *
In India, Call Center operators have to get a no objection certificate
from
Deputy Director General (Customer Relations) at Department of
Communications, Government of India, New Delhi. This NOC is granted
with the
aim of granting a special permission to use voice circuits over
international gateways with the dedicated and stated purpose of serving
overseas customers, and accompanied by an undertaking that it will not
be
connected to a PSTN within India.
The Government of India has released a set of Terms / Conditions for
Call
Center operators in India. The new policy initiatives are aimed at
liberalizing Call Center operations in India. Some of the salient
points of
the policy are as under:
The Call Centers are being permitted on nonexclusive basis against the
requests received from IT Service providers. These call centers can
either
be international or domestic in nature.
- However, no interconnectivity of the international and domestic
call
centers is permitted. But, interconnection of two domestic call
centers of
the same company is permissible, subject to prior approval of the
DoT.
- The International Call Centers will be permitted on IPLCs
(International Private Leased Circuits) only and will cater to calls
from
foreign end PSTN (Public Switched Telephone Network). However, no
PSTN
connectivity will be permitted at the Indian end. At Indian end,
even
linking to any private or public network is not permitted for IPLC,
even if
it is of the same organization.
- The domestic call center can have PSTN connectivity at one end or
both ends or at multipoint in a more complex configuration, with
only
incoming and with outgoing disabled at all places, wherever PSTN
termination
is provided.
- No other interconnectivity, except as permitted above, with any
public or private network, shall be permitted to the call center set
up.
Nasscom welcomes the above initiative announced by DoT. This is
expected to
give boost to proliferation of call centers in India. However, there is
a
strong need to permit PSTN connectivity at the Indian end, to
international
call centers as well as for software companies in India (who provide
software support from India). This is important not only for large
establishments of international call centers ( a great source of export
revenue and employment) but also to encourage software companies to
enable
their employees to per form as teleworkers. Nasscom is presently
working
with concerned authorities to resolve this issue. It is also desired
that
domestic and international Call Centers be permitted interconnectivity.
Actually, there should be no distinction between them.
*Marketing *
Call Center services are provided to clients customers on the basis of
a
long term contract (running upto 2-4 years or more). Therefore, it is
advisable to approach clients directly. This may be effected through
establishing a branch office / subsidiary in USA or any other export
market.
It is also advisable to appoint a local person as a senior / head
executive
of the office as it helps to increase comfort level of the target
customer(s). Further, in order to attract initial customers, it may be
worthwhile to operate on Build-Own - Operate- Transfer basis. Companies
may
also bear in mind that it is easier to sell services by having a
functional
'proof of concept'. In other words, a functional call center,
preferably
operating closer to service levels expected by the customer. Such
concerns
may be common as call centers represent interaction in real time and
companies would not appreciate any faux pas in such interactions.
However, companies may also consider establishing and managing
facilities
for a large call center Services Company or even enter into a joint
venture
agreement. This would help ensure profitability as well as growth. The
call
center is also a viable business proposition as it is considered to be
a
good launch pad for other service areas in various segments of the
value
chain and thus providing end-to-end platform for virtual value chain.
Nasscom plans to lead a Call Center delegation every six-month to
Europe and
USA. This is expected to bring in a lot of business to India.
*Summary *
Call Centers have clearly emerged as one of the most favored of all IT
enabled services. On one hand, this is due to the success and
prominence
achieved by call centers already operating in India. On the other hand,
global call center industry has proven to be amongst the most stable
revenue
growth centers amongst all related services. The enthusiasm of global
corporations as well as domestic entrepreneurs is validated by some of
the
inherent advantages enjoyed by India. Further encouragement through
proactive encouragement by Government of India to promote this industry
augurs well for India emerging as the preferred choice for setting up
call
centers in India.