Description
The BPO industry in India is gaining momentum and promises to add 3.3 Million jobs in India a country where productive employment is scare. BPO promises to transform India economically much in the way as oil transformed the economies of West Asian countries.
Understanding BPO/Call Center Industry and HR Issues
Introduction
The BPO industry in India is gaining momentum and promises to add 3.3 Million jobs in India a
country where productive employment is scare. BPO promises to transform India economically
much in the way as oil transformed the economies of est !sian countries. To understand
whether that is actually so the following projections merit a consideration"
a# $orrester research predicts 3.3Million %& jobs to move Offshore by '()*
b# BPO revenue has grown by +(, in the year '(('-'((3 to touch %&. '.3 billion. This is
slated by grow by another +(, in the year '((3-'((/ as per 0asscom
c# !s per 0asscom-Mc1insey report the total opportunity is at %&. )/2 Billion and if India
captures )3+th of that then it will translate to about */(4((( jobs by '()( with a revenue of %&.
'/.+5 Billion.
!ssuming these projections were correct then in year '()( BPO industry will directly support
the livelihood of about ).(-).*, of India6s population. !nother (.*, of the population will be
supported by the ancillary effect of BPO. Thus at best ', of India6s population will be impacted
by BPO. In sheer 7.P terms assuming India6s 7.P to be about %&. +(( Billion by '()(4 /, of
the 7.P will be contributed by BPO. Though significant these numbers do not bear comparison
with the oil prosperity of est !sia. 8owever these numbers are sufficient to spar1 the
6prosperity chain6 wherein the capital generated through this industry is invested bac1 in other
industries not only domestically but globally to generate a virtuous cycle of investments and
profits.
But4 there are many doubts in the minds of people about the IT9&-BPO Industry: doubts in the
mind of people who are not a part of this industry: doubts in the mind of people4 who want to be
part of this industry and also doubts in the minds of people who are already a part of this
industry. This write-up is an attempt to answer most the ;uestions that can crop-up in anybody6s
mind about the industry: how it wor1s and growth opportunity in this industry. <ou can also go
through http"33www.bpoindia.org3fa;3 to 1now more about the industry.
Offshore BPO and Outsourcing
1) Who are some well!nown offshore "endors#
There are many choices when it comes to offshore vendors. Typically companies interested in
offshoring select the best operational model for them before deciding what type of vendor they
are loo1ing for. Many firms often see1 out vendors that speciali=e in the type of process they
have decided to outsource. &ome companies4 however4 go a different route and select the
country first and then evaluate the top vendors in that location. There are so many vendor
options that careful planning is one of the 1ey factors in ma1ing your offshoring project a
success.
&ome of the top offshore BPO service providers follow"
In India4 0ipuna4 a subsidiary of &atyam >omputers: Progeon4 a subsidiary of Infosys:
&pectramind4 a subsidiary of ipro4 and 0&4 owned by arburg Pincus and British !irways4
lead the way.
In the Philippines4 eTelecare and !mbergris &olutions compete for BPO business.
In ?ussia4 @%AO$T has surfaced as a leader.
$) How do you de"elo% an offshore sourcing strategy#
!fter you pic1 the type of process you plan to outsource and decide what the best operational
model is for you4 the neBt step is selecting an offshore vendor. The well-established process for
sourcing is"
&elect the country first. %nderstand the capabilities4 ris1s4 and benefits of the country including"
political stability: availability of s1illed resources and infrastructure: si=e and ;uality of the labor
pool: language and cultural issues: data security: IP protection and software piracy: and
government support.
&can the vendor landscape in the country. &hortlist the vendors based on specific screening
criteria4 for eBample4 eBperience4 domain eBpertise4 cost4 ;uality4 and financial stability.
.etermine the best-fit delivery model for your business" pure offshore4 onsite3offshore4 or
onsite3onshore3offshore.
0arrow down the vendors according to years in business4 scale of operation4 range of services4
geographic span4 delivery model options4 industry focus4 and cultural fit. $or those vendors on
the short list4 we highly recommend that you visit each vendor to personally assess each 1ey
performance criterion that is important to your company.
0egotiate and attempt to build a relationship with the vendor. ?emember that this is a strategic
relationship that might be difficult to eBit later4 so ta1ing the time to find the right vendor is very
important.
&) What ty%es of o%erational models e'ist#
Three main types of operational models eBist"
• >aptive processing centers4
• Third-party providers4 and
• Coint ventures Dbuild4 operate4 and transfer#
>aptive centers underta1e business processing only for their own multinational businesses.
&ome eBamples include 8&B> D8yderabad#4 !merican 9Bpress D.elhi#4 British !irways
DMumbai#4 >itiban1 D>hennai#4 and .ell DBangalore#.
The second operation model is called a third-party provider. Third-party providers supply
outsourcing services to other companies. They resemble Internet software service firms that
complete IT systems setup projects for various companies. &ome eBamples of these companies
include 0ipuna Da subsidiary of &atyam#4 Msourc94 '/354 &pectramind4 and .a1sh.
The third operational model often used in offshoring is the joint venture DCE# model. In a CE4
often called a build4 operate4 and transfer model4 two entities own the operation. $or instance4 in
.ecember )FF24 &atyam >omputers entered into a joint venture with an affiliate of 79 Industrial
&ystems. The joint venture company provided the 79 affiliate with engineering design services4
software development4 and system maintenance services. In early '((34 &atyam sold its
interest in this joint venture after an affiliate of 79 eBercised its option to purchase &atyam6s
interest for G/ million.
() What are the ris!s to consider when %ic!ing an offshore location#
Offshore location ris1 factors include"
• Infrastructure instability
• Management of offshore resources
• >onfidentiality of information
• Time =one differences
• >ultural differences
• @anguage barriers
• %n1nown suppliers
• %ncertain legal rights
• 7eopolitical instability
)) What criteria do com%anies use when they select a *usiness %rocess to offshore#
In general4 business processes should be selected for offshoring based on potential savings4
labor attributes4 interdependencies4 and regulatory constraints. %sually the following criteria are
used when evaluating business processes"
• &i=e of cost base.
• @abor necessary to complete the tas14 i.e.4 is it labor intensiveH
• Presence of interlin1ages that would be violated by relocation.
• !vailability of full-time offshore employees s1illed in the particular business process.
• .ifference in onshore and offshore wage levels.
!fter the evaluation4 most companies assign processes to one of three categories" probable4
possible4 and unli1ely for offshoring. The most eBperienced companies tend to implement a
phased approach"
• $irst4 they start small with well-documented processes that re;uire little day-to-day
interaction such as data entry or legacy application maintenance.
• 7radually they move to more value-added processes such as customer support4
accounts payable4 or software development.
• 9ventually they try new operational models such as a dedicated center4 joint venture
DCE#4 or build-operate-transfer DBOT# model.
+or HR Professionals,em%loyee related -ueries
.trategies +or Com*ating .taff /urno"er
!cross the call center industry4 there have been )' typical causes of call center turnover4
including Din no specific order#"
• Pace of effort re;uired
• &ense of powerlessness or lac1 of control
• $rustration of not being allowed to do a good job
• ?epetition
• .aily physical confinement Dtied to their des1#
• Over-regimentation
• The feeling of being spied on
• The feeling of not being appreciated by others in the organi=ation
• 8andling complaints and problems all day
• Odd wor1 hours
• Pay
• Better opportunities elsewhere
Of course4 not all will apply in each case4 but one or two are li1ely to be the biggest culprits. In
this case4 I6d start by as1ing what changed in the internal and eBternal environments from the
period of no turnover to the current situation of 3(-percent turnoverH hich of these )' factors
stand outH
Pay could be a problem if you6re not 1eeping pace with the mar1et. !s the call center
environment becomes more compleB4 I thin1 a lot of organi=ations are going to have to do some
soul-searching on the importance and commensurate remuneration associated with these jobs.
Many managers are ;uic1 to point out that pay is just one factor4 and often not the most
important: true4 but there6s a point at which this argument gets carried too far. ?eality is4 there
are lots of opportunity out there for competent4 personable people who have both technical and
communication s1ills.
That said4 if you truly are paying mar1et rates4 there should be relatively small4 incremental
differences between what you and others are offering. The following have been proven time and
again to have a direct4 positive bearing on turnover and morale"
• Broaden and eBtend the training your agents receive and the responsibilities they have
Dwhich is fundamental to addressing your second ;uestion: hierarchy must not by
synonymous with career path#.
• Involve them in managing the call center -- ;uality improvement4 forecasting4 and
collaboration with other teams and departments4 establishing schedules4 etc.
• 9nsure they have an understanding of Dand involvement in# the direction and values of
the organi=ation.
• 9nsure that your call center is accessible Dmaintain good service levels# so that you6re
not burying agents in customers frustrated from the start.
Creating Career Paths
<ou may need to get creative with job titles and compensation practices within the call center. If
you only have )( agents in the call center and little or no room for advancement out of the call
center within your company4 develop different ImicroI job tiers for which agents can strive. %se
such titles as Icontact specialist4I Iadvanced contact specialist4I IeBpert contact specialist4I and
Ilead contact specialist3supervisor. But don6t insult agents6 intelligence by creating only new job
titles - be sure to tie in formal s1ill sets and 1nowledge re;uirements needed to achieve each
Icontact specialistI level4 and4 most importantly4 implement a s1ills-based pay program that
rewards agents financially for continual development. To help fend-off3reduce agent burnout in a
small environment4 tap the talent and creativity of each agent when wor1ing on off-phone
projects. 9mpowering agents and creating job diversity is essential to retaining staff in a small
call center for as long as possible.
Personality /raits Often +ound In 0ood Customer .er"ice Re%resentati"es
8ere are the primary attributes of successful agents listed by call center professionals who
participated in the study"
• >ustomer service s1ills and eBperience4 including an ability to wor1 well with the public
and an ability to adopt a customer perspective
• Technical s1ills4 including proficiency with computers4 support systems and 1eyboarding
s1ills
• &trong verbal communication s1ills4 including good voice ;uality4 diction4 and
articulation.
!dditional hiring criteria identified include"
• !pplicant is positive4 enthusiastic4 non-confrontational and professional
• .emonstrates willingness to learn
• 8as ability to wor1 under pressure and handle multiple tas1s.
Im%ro"ing the accuracy of Wor!force forecast
Matching up call center resources with the demands of the wor1load is a critical part of call
center planning. This responsibility goes to the heart of Incoming >alls Management Institute6s
definition of call center management" Incoming call center management is the art of having the
right number of people and supporting resources in place at the right times to handle an
accurately forecasted wor1load at service level4 and with ;uality.
!ccurately predicting the wor1load presents one of the most important4 and often most
challenging steps in this effort. ithout a good wor1load forecast4 the rest of call center planning
is an Iuphill battleI at best. !nd4 when predictions are off the mar14 there is a tendency to loo1 to
those who do the forecasts for eBplanations. 8owever4 the person Dor group# who does the
forecasting may be highly trained4 e;uipped with the latest in forecasting software4 and armed
with every conceivable !>. and database report and still be unable to produce good forecasts
if they aren6t made aware of what mar1eting is up to or if reps are handling calls inconsistently.
Twelve ways to improve the predictability of the wor1load are summari=ed below. 9ach is
outside the realm of what is usually thought to be the forecasting process. <et4 each is essential
to an accurate forecast.
). Use 1C2 modes consistently. 9ach rep has an impact on the components of handling
time Dtal1 time and after call wor1# and4 therefore4 on the data that will be used in
forecasting and planning for future call loads. hen the ;ueue is building4 it can be
tempting to postpone some after call wor1 Dwrap-up# that should be done at the time of
the call. This s1ews reports4 causes planning problems and may lead to increased
errors. !n important and ongoing training issue is to define ahead of time which types of
wor1 should follow calls and which types of wor1 can wait.
'. 3m%hasi4e -uality. &upervisors and reps can feel that the pressure of a bac1ed-up
;ueue forces them to ma1e tough tradeoffs between seemingly competing objectives4
such as service level and ;uality. 8owever4 although service level and ;uality seem to
be at odds in the short term4 poor ;uality will negatively impact service level over time
by contributing to repeat calls and other forms of waste and rewor1. This will contribute
to wor1load volatility and inconsistencies. The emphasis should be on handling each
call correctly4 regardless of how bac1ed up the ;ueue is.
3. 1"oid call*ac!s. Many call centers have discovered the hard way that giving callers
the option to leave a message when the ;ueue gets bac1ed up often bac1fires. $or
eBample4 you may call bac1 only to get perpetual busies4 ring-no-answers4 voice mail or
somebody else in the person6s wor1 area DIsorry4 she stepped away for a momentI#.
!nd in the meantime4 the caller may call the call center again.
! minority of call centers do have success with a callbac1 strategy4 particularly when
reps have to do some amount of preparation in order to handle the calls4 or when the
center is flooded with calls because of a once-in-awhile occurrence. &till4 most call
centers find that4 in the end4 it ma1es more sense to handle the inbound calls when they
arrive.
/. 1ntici%ate and manage growth. .o an analysis of the li1ely impact of growth on your
call center. This often ta1es the form of a chart or document that illustrates the projected
costs and time-frames of growing the call center in increments4 such as ten percent
growth in call load4 twenty percent growth4 thirty percent growth4 and so on. The
document should illustrate re;uired lead-times and 1ey decision points associated with
things li1e additional wor1stations4 new or upgraded e;uipment4 or a new facility Dsee
0otes4 Canuary )FF+#.
*. 2e"elo% *etter ties with other de%artments. This should be an ongoing effort in any
call center. Most of what happens in a call center is caused by something going on
outside the center. The forecast is doomed if strong ties with other departments don6t
eBist. There6s no substitute for 1nowing well in advance when mar1eting is running the
neBt campaign4 when manufacturing is releasing the new products and when finance is
redesigning the terms and conditions.
+. 5a!e forecasting a colla*orati"e %rocess. Involve supervisors and lead reps in the
forecasting process4 on a rotating basis. This yield two positive results" )# they will
better understand the pulse of the call-load and what6s behind the schedules Dand will
often adhere to them better as a result#4 and '# because they are continually dealing
with callers4 they have their Iear to the groundI and can help anticipate caller reactions
to changes and developments in the mar1etplace and the organi=ation6s services.
5. /rac! a*senteeism. If you are part of a networ1 of call centers or if you have overflow
routines established between call center groups4 absenteeism in one area has a direct
impact on the wor1load in another. It is important to anticipate absenteeism in advance
and4 contrary to conventional wisdom4 it is reasonably predictable. $or eBample4 in wor1
groups with typical Monday through $riday schedules4 unscheduled absenteeism tends
to be higher on Monday and $riday than the other days of the wee1. 8ave someone
trac1 absenteeism4 and loo1 for patterns.
2. 1ntici%ate the factors affecting caller tolerance. The seven factors of caller
tolerance include motivation4 availability of substitutes4 competition6s service level4 level
of eBpectations4 time available4 who6s paying for the call and human behavior. Putting
some thought into these factors goes a long ways towards anticipating caller behavior.
F. /rac! and manage non%hone acti"ities. $orecasting non-phone activities such as
research and correspondence is a challenge. Many call center managers4 used to
having detailed information on the call-load4 long for similar reports on non-phone
activities. $ortunately4 as with inbound calls4 these activities often occur in predictable
patterns4 and usually have a strong correlation to other forecasts4 such as the inbound
call-load4 units of sales or number of customers Dand they are usually a lot less time-
sensitive than incoming calls#. Investigate the trac1ing capabilities in your !>.4
forecasting3staffing software and computer database. !s a last resort4 trac1 these
activities manually4 as they occur.
)(. Better educate callers. The inbound call-load tends to be less erratic when callers are
aware of other service alternatives De.g. services via faB bac14 voice response units or
the orld ide eb#. Billing inserts4 focused advertisements4 newsletter articles4 and
customer support sections in user manuals are all eBamples of ways to better educate
callers on the service alternatives available.
)). 5inimi4e transferred and escalated calls. !n eBcessive number of transferred and
escalated calls will wrec1 havoc on the wor1load forecast. %tili=e ;uality improvement
tools4 such as flow charts and cause and effect diagrams Dsee &ervice @evel 0ewsletter4
0otes column4 May )FF*# to address root causes. >ommon problems include
insufficient training4 insufficient authority4 incomplete or missing database information
and poor call routing design De.g. calls often end up in the wrong place to begin with#.
)'. 1ccom%lish as much as %ossi*le during tal! time. hen tas1s related to inbound
calls can be completed with the caller still on the line4 errors are usually reduced.
$urther4 the time reps would otherwise spend in more discretionary Dand less
predictable# wor1 modes4 such as after call wor1 or auBiliary modes4 is minimi=ed.
/he !ey %erformance measurements for indi"iduals
ant to start a lively discussion among call center managersH $loat the issue of performance
measurements for reps. &ince performance measurements are usually tied to eBpectations and
standards4 that will raise issues about fairness4 what reps can and can6t control4 why people
have different capabilities and drives4 and the processes they are wor1ing within. $ew subjects
elicit such strong and varied opinion.
>onse;uently4 there are about as many different sets of performance measurements and
standards as there are call centers. 8ere4 we will loo1 three types of performance
measurements -- calls per hour4 adherence and ;ualitative measurements -- commonly used in
assessing individual performance. e6ll also discuss why calls per hour are fading4 while the
other two types of measurements continue to gain acceptance.
Calls Per Hour Is +ading
Traditionally4 calls per hour have been an almost universal productivity measurement. In fact4
many call center managers have viewed calls per hour as virtually synonymous with
Iproductivity.I &ure4 there have always been concerns about sacrificing ;uality for ;uantity. But4
in practice4 calls per hour has been the preferred benchmar1 for establishing productivity
standards4 comparing performance among reps and groups4 and assessing the impact of
changes and improvements to the call center.
8owever4 as a measure of performance4 calls per hour is Dand always has been# problematic.
Many of the variables that impact calls per hour are out of the rep6s control" call arrival rate4 type
of calls4 1nowledge of callers4 communication ability of callers4 accuracy of the forecast and
schedule4 adherence to schedule Dof others in the group# and absenteeism4 to name a few.
There are also mathematical realities at wor1 that are not within the control of an individual. $or
eBample4 smaller groups are less efficient Dhave lower occupancy# than larger groups4 at a
given service level. &ince the number of calls is changing throughout the day4 so does average
calls per hour for a group or an individual in the group.
!nd4 as is often pointed out4 if calls per hour are over-emphasi=ed4 ;uality can suffer. ?eps may
even Itric1I the system to increase their call count and achieve a standard. DMany call center
managers get a sheepish smile when this point comes up in discussion. One could surmise that
more than a few4 once upon a time4 have IaccidentallyI clic1ed off or erroneously transferred a
call or two#.
&ome call center managers convert raw calls per hour into an adjusted measurement that is
more fair and meaningful. $or eBample4 occupancy4 which is not within the control of an
individual4 can be Ineutrali=edI by dividing call handled by percent occupancy. Others go a step
further4 and develop statistical control charts to determine whether the process is in control4
what it6s producing4 and which reps4 if any4 are outside of Istatistical control.I
But even with further analysis4 calls per hour begins to lose meaning as technologies such as
>TI4 s1ills based routing4 and web integration4 which enable increasingly sophisticated and
varied call handling routines4 proliferate. $or many who have depended on calls per hour4 this
has left a vacuum" 8ow can we measure productivity in an increasingly varied and compleB
environmentH 9nter adherence and ;ualitative measurements4 which continue to gain
acceptance.
1dherence 5easurements
!dherence factor4 or signed-on time4 is a measurement of how much time an individual is
available to handle calls versus the time he or she was scheduled to handle calls. If adherence
factor is 2*,4 a rep would be eBpected to be in adherence .2* B +( minutes4 or *) minutes on
average per hour. !dherence consists of all plugged-in time4 including tal1 time4 after call wor1
Dwrap-up# time4 waiting for the neBt call4 and necessary outgoing calls. @unch4 brea1s4 training4
etc.4 are not counted as time assigned to handle calls. !dherence factor should be established
at a level that is reasonable and that reflects the many things that legitimately 1eep reps from
the phones. It should also fleBible Dadjustable downward# when call volumes are low.
&ome have developed adherence factor into a more refined measurement that also
incorporates timing -- when was a person available to ta1e calls4 in addition to how much time
they were available. The idea is to ensure that people are plugged in mid-morning when calls
are barreling in4 and saving special projects for Thursday and $riday afternoon when calls slow
down. !>. and forecasting3staffing software has improved adherence reporting significantly in
recent years.
The advantage of adherence factor is that it is reasonably objective. ?eps cannot control
variables such as the number of staff scheduled to answer calls4 the number of calls coming in4
the distribution of long and short calls or the distribution of easy and difficult calls. But they can
generally control how available they are to ta1e calls.
6ualitati"e 5easurements
In most call centers4 ;ualitative criteria4 which focus on 1nowledge of products and services4
customer service and call handling s1ills4 and the policies of the organi=ation4 continue to
become more refined and specific. Most use some form of monitoring Dsilent4 with a beep tone4
side by side4 or record and review# to evaluate individual performance and identify training and
coaching needs.
!n important and developing aspect of ;uality is that reps ta1e the necessary time to do the job
right -- no more4 no less. This means not rushing calls4 but also not spending eBcess time on
calls over and above what is necessary to satisfy callers and handle them completely and
correctly. If ;ualitative measurements are refined enough to insure that reps are spending the
appropriate amount of time handling calls4 then adherence and ;ualitative measurements ma1e
a powerful pair. In fact4 measuring calls per hour is unnecessary.
This is easier said than done in environments where ;ualitative measurements are vague and
indeterminate. !nd4 many managers still believe that trac1ing production outputs4 such as calls
per hour or average handling time4 is necessary. But the trend is clear" well-defined ;ualitative
measurements are beginning to erode reliance on measurements that are after-the-fact outputs.
/he factors that affect caller tolerance
There are seven factors that affect caller tolerance. They influence everything from how long
callers will wait in ;ueue to how many will abandon4 how many will retry when they get busy
signals4 and how they will react to automation4 such as a E?%. They also affect how callers
perceive the service the call center is providing. They are as follows"
• .egrees of motivation - 8ow motivated are your callersH >allers eBperiencing a power
outage will usually wait longer to reach their utility than those with billing ;uestions.
• !vailability of substitutes - !re there substitutes the caller can use if they can6t get
through to the initial number they are tryingH If they are highly motivated and have no
substitutes4 they will retry many times if they get busies and will generally wait a long
time in ;ueue if necessary. But if they 1now of an alternative number to try4 or if there
are other selections in your automated attendant4 they may try those alternatives. Or
they may try faB4 eb or E?%-based services.
• >ompetition6s service level - If it6s easier for callers to use competitive services or if they
have a tough time reaching you4 they may go elsewhere.
• @evel of eBpectations - !n organi=ation or industry6s reputation for service - or the level
of service being promoted - has a bearing on caller tolerance.
• Time available - $or eBample4 a caller6s occupation can affect caller tolerance. .octors
who call insurance providers are infamous for being intolerant of even modest ;ueues.
?etirees4 on the other hand4 may have more time to wait.
• ho6s paying for the callH - In general4 callers are more tolerant of a ;ueue when toll-
free service is available. They are intolerant of even short waits when they are paying
for premium priced numbers De.g.4 F(( service#.
• 8uman behavior - The weather4 the caller6s mood and the time of day all have a bearing
on caller tolerance.
Jeep in mind that these factors are not static. They are constantly changing. 9ven so4 it is
important to have a general understanding of the factors affecting your callers6 tolerance.
0lossary of Industry /erminology
.l7
8o7
/erminology 3'%lanation
) 1*andoned Call ! call terminated by the caller prior to being
answered
' 1*andoned Call
Rate
! measurement of abandoned calls usually
eBpressed as a percentage of total calls
received.
3 1C2 1utomatic
Call 2istri*utor
! telephone system that distributes calls to
agents according to predefined business
rules.
/ 1CW 1fter Call
Wor!
The time ta1en by an agent to complete the
transaction after the caller hangs up4 is also
referred to rap up time
* 1dherence to
.chedule
?efers to the adherence of staff to their
rosters or hours of wor1.
+ 1gent The person who handles the call
5 1H/ 1"erage
Handling /ime
The average time ta1en to handle a call4 can
include actual tal1 time and after call wor1.
2 1.1 1"erage
.%eed of 1nswer
! measurement eBpressing the time ta1en for
a call to be answered either by an agent or
!uto !ttendant.
F 1uto 1ttendant ! telephony facility that routes calls according
to the selections made by the caller pressing
the 1eys on the telephone.
)( 1"aila*ility ! measurement covering an agent who is
available to handle the neBt call.
)) Blending ! process where individual agents are able to
operate across multiple function calls at the
one time i.e. an agent that processes inbound
service calls and outbound sales during their
shift.
)' Call 2emand 9stimated number of calls that are eBpected
to be received by the centre.
)3 C9I Call 9ine
Identification
!n I&.0 facility that displays the callers
number.
)/ Cold Calling Telemar1eting to prospects with whom there
is no established relationship.
)* Cost %er Call ! measurement of the financial cost of each
call4 usually calculated by the centre costs
being divided by the number of calls received.
)+ CR5 Customer
Relationshi%
5anagement
! process that records customer contacts and
information to allow for an enhanced relation
with the customer.
)5 C.R Customer
.er"ice
Re%resentati"e
!n alternative name for an agent
)2 C/I Com%uter
/ele%hony
Integration
! function that provides for the telephony and
customer information to be aligned. This
allows for such functions as screen popping.
)F 3rlang C ! formula used in centres to calculate staff
needs based upon historical call trend data.
'( +CR +irst Call
Resolution
! measurement of the number of calls that
are resolved during the first contact with the
caller.
') +/3 +ull /ime
3-ui"alent
!n eBpression of staff numbers calculated on
the number of hours a full time staff member
would wor1.
'' Intelligent Routing The routing of calls through predefined
business rules that are based upon the
eBpected characteristics of the caller.
'3 I:R Interacti"e
ice Res%onse
! system that interacts with callers using
predetermined menus and telephone 1ey
input4 or speech recognition software.
'/ 9ogged On here an agent is logged into the phone
system
'* 5ystery .ho%%ing here performance is measured through the
use of dummy calls4 usually conducted by a
third party.
'+ Occu%ancy ! measurement of the time actually spent by
an agent handling calls against the total time
available
'5 P1B; Pri"ate
1utomatic Branch
3'change
the switch which manages calls with an
organi=ation.
'2 Predicti"e 2ialler ! system that automatically initiates outbound
calls and presents the call to an agent on
connection to a called party.
'F 6ueue ! ban1 of calls waiting for an agent to become
available.
3( Roster ! schedule of time to be wor1ed.
3) .corecard ! group of performance indicators that reflect
the operations of the centre.
3' .hrin!age !n allocation of time from rosters that
accounts for unscheduled brea1s4 i.e.
unplanned leave
33 /al! /ime Measurement of time that an agent spends
tal1ing to callers.
3/ /hru Call Per Hour The actual number of calls handled by an
agent in an hour
3* UP. Uninterru%ted
Power .u%%ly
&ystems in place that cover normal power
supplies i.e. battery4 generators.
3+ice Res%onse %se of a pre-recorded message to answer
incoming calls
35 :OIPice O"er
Internet Protocol
&ystem that enables voice calls to be carried
over a data networ1.
doc_690401535.doc
The BPO industry in India is gaining momentum and promises to add 3.3 Million jobs in India a country where productive employment is scare. BPO promises to transform India economically much in the way as oil transformed the economies of West Asian countries.
Understanding BPO/Call Center Industry and HR Issues
Introduction
The BPO industry in India is gaining momentum and promises to add 3.3 Million jobs in India a
country where productive employment is scare. BPO promises to transform India economically
much in the way as oil transformed the economies of est !sian countries. To understand
whether that is actually so the following projections merit a consideration"
a# $orrester research predicts 3.3Million %& jobs to move Offshore by '()*
b# BPO revenue has grown by +(, in the year '(('-'((3 to touch %&. '.3 billion. This is
slated by grow by another +(, in the year '((3-'((/ as per 0asscom
c# !s per 0asscom-Mc1insey report the total opportunity is at %&. )/2 Billion and if India
captures )3+th of that then it will translate to about */(4((( jobs by '()( with a revenue of %&.
'/.+5 Billion.
!ssuming these projections were correct then in year '()( BPO industry will directly support
the livelihood of about ).(-).*, of India6s population. !nother (.*, of the population will be
supported by the ancillary effect of BPO. Thus at best ', of India6s population will be impacted
by BPO. In sheer 7.P terms assuming India6s 7.P to be about %&. +(( Billion by '()(4 /, of
the 7.P will be contributed by BPO. Though significant these numbers do not bear comparison
with the oil prosperity of est !sia. 8owever these numbers are sufficient to spar1 the
6prosperity chain6 wherein the capital generated through this industry is invested bac1 in other
industries not only domestically but globally to generate a virtuous cycle of investments and
profits.
But4 there are many doubts in the minds of people about the IT9&-BPO Industry: doubts in the
mind of people who are not a part of this industry: doubts in the mind of people4 who want to be
part of this industry and also doubts in the minds of people who are already a part of this
industry. This write-up is an attempt to answer most the ;uestions that can crop-up in anybody6s
mind about the industry: how it wor1s and growth opportunity in this industry. <ou can also go
through http"33www.bpoindia.org3fa;3 to 1now more about the industry.
Offshore BPO and Outsourcing
1) Who are some well!nown offshore "endors#
There are many choices when it comes to offshore vendors. Typically companies interested in
offshoring select the best operational model for them before deciding what type of vendor they
are loo1ing for. Many firms often see1 out vendors that speciali=e in the type of process they
have decided to outsource. &ome companies4 however4 go a different route and select the
country first and then evaluate the top vendors in that location. There are so many vendor
options that careful planning is one of the 1ey factors in ma1ing your offshoring project a
success.
&ome of the top offshore BPO service providers follow"
In India4 0ipuna4 a subsidiary of &atyam >omputers: Progeon4 a subsidiary of Infosys:
&pectramind4 a subsidiary of ipro4 and 0&4 owned by arburg Pincus and British !irways4
lead the way.
In the Philippines4 eTelecare and !mbergris &olutions compete for BPO business.
In ?ussia4 @%AO$T has surfaced as a leader.
$) How do you de"elo% an offshore sourcing strategy#
!fter you pic1 the type of process you plan to outsource and decide what the best operational
model is for you4 the neBt step is selecting an offshore vendor. The well-established process for
sourcing is"
&elect the country first. %nderstand the capabilities4 ris1s4 and benefits of the country including"
political stability: availability of s1illed resources and infrastructure: si=e and ;uality of the labor
pool: language and cultural issues: data security: IP protection and software piracy: and
government support.
&can the vendor landscape in the country. &hortlist the vendors based on specific screening
criteria4 for eBample4 eBperience4 domain eBpertise4 cost4 ;uality4 and financial stability.
.etermine the best-fit delivery model for your business" pure offshore4 onsite3offshore4 or
onsite3onshore3offshore.
0arrow down the vendors according to years in business4 scale of operation4 range of services4
geographic span4 delivery model options4 industry focus4 and cultural fit. $or those vendors on
the short list4 we highly recommend that you visit each vendor to personally assess each 1ey
performance criterion that is important to your company.
0egotiate and attempt to build a relationship with the vendor. ?emember that this is a strategic
relationship that might be difficult to eBit later4 so ta1ing the time to find the right vendor is very
important.
&) What ty%es of o%erational models e'ist#
Three main types of operational models eBist"
• >aptive processing centers4
• Third-party providers4 and
• Coint ventures Dbuild4 operate4 and transfer#
>aptive centers underta1e business processing only for their own multinational businesses.
&ome eBamples include 8&B> D8yderabad#4 !merican 9Bpress D.elhi#4 British !irways
DMumbai#4 >itiban1 D>hennai#4 and .ell DBangalore#.
The second operation model is called a third-party provider. Third-party providers supply
outsourcing services to other companies. They resemble Internet software service firms that
complete IT systems setup projects for various companies. &ome eBamples of these companies
include 0ipuna Da subsidiary of &atyam#4 Msourc94 '/354 &pectramind4 and .a1sh.
The third operational model often used in offshoring is the joint venture DCE# model. In a CE4
often called a build4 operate4 and transfer model4 two entities own the operation. $or instance4 in
.ecember )FF24 &atyam >omputers entered into a joint venture with an affiliate of 79 Industrial
&ystems. The joint venture company provided the 79 affiliate with engineering design services4
software development4 and system maintenance services. In early '((34 &atyam sold its
interest in this joint venture after an affiliate of 79 eBercised its option to purchase &atyam6s
interest for G/ million.
() What are the ris!s to consider when %ic!ing an offshore location#
Offshore location ris1 factors include"
• Infrastructure instability
• Management of offshore resources
• >onfidentiality of information
• Time =one differences
• >ultural differences
• @anguage barriers
• %n1nown suppliers
• %ncertain legal rights
• 7eopolitical instability
)) What criteria do com%anies use when they select a *usiness %rocess to offshore#
In general4 business processes should be selected for offshoring based on potential savings4
labor attributes4 interdependencies4 and regulatory constraints. %sually the following criteria are
used when evaluating business processes"
• &i=e of cost base.
• @abor necessary to complete the tas14 i.e.4 is it labor intensiveH
• Presence of interlin1ages that would be violated by relocation.
• !vailability of full-time offshore employees s1illed in the particular business process.
• .ifference in onshore and offshore wage levels.
!fter the evaluation4 most companies assign processes to one of three categories" probable4
possible4 and unli1ely for offshoring. The most eBperienced companies tend to implement a
phased approach"
• $irst4 they start small with well-documented processes that re;uire little day-to-day
interaction such as data entry or legacy application maintenance.
• 7radually they move to more value-added processes such as customer support4
accounts payable4 or software development.
• 9ventually they try new operational models such as a dedicated center4 joint venture
DCE#4 or build-operate-transfer DBOT# model.
+or HR Professionals,em%loyee related -ueries
.trategies +or Com*ating .taff /urno"er
!cross the call center industry4 there have been )' typical causes of call center turnover4
including Din no specific order#"
• Pace of effort re;uired
• &ense of powerlessness or lac1 of control
• $rustration of not being allowed to do a good job
• ?epetition
• .aily physical confinement Dtied to their des1#
• Over-regimentation
• The feeling of being spied on
• The feeling of not being appreciated by others in the organi=ation
• 8andling complaints and problems all day
• Odd wor1 hours
• Pay
• Better opportunities elsewhere
Of course4 not all will apply in each case4 but one or two are li1ely to be the biggest culprits. In
this case4 I6d start by as1ing what changed in the internal and eBternal environments from the
period of no turnover to the current situation of 3(-percent turnoverH hich of these )' factors
stand outH
Pay could be a problem if you6re not 1eeping pace with the mar1et. !s the call center
environment becomes more compleB4 I thin1 a lot of organi=ations are going to have to do some
soul-searching on the importance and commensurate remuneration associated with these jobs.
Many managers are ;uic1 to point out that pay is just one factor4 and often not the most
important: true4 but there6s a point at which this argument gets carried too far. ?eality is4 there
are lots of opportunity out there for competent4 personable people who have both technical and
communication s1ills.
That said4 if you truly are paying mar1et rates4 there should be relatively small4 incremental
differences between what you and others are offering. The following have been proven time and
again to have a direct4 positive bearing on turnover and morale"
• Broaden and eBtend the training your agents receive and the responsibilities they have
Dwhich is fundamental to addressing your second ;uestion: hierarchy must not by
synonymous with career path#.
• Involve them in managing the call center -- ;uality improvement4 forecasting4 and
collaboration with other teams and departments4 establishing schedules4 etc.
• 9nsure they have an understanding of Dand involvement in# the direction and values of
the organi=ation.
• 9nsure that your call center is accessible Dmaintain good service levels# so that you6re
not burying agents in customers frustrated from the start.
Creating Career Paths
<ou may need to get creative with job titles and compensation practices within the call center. If
you only have )( agents in the call center and little or no room for advancement out of the call
center within your company4 develop different ImicroI job tiers for which agents can strive. %se
such titles as Icontact specialist4I Iadvanced contact specialist4I IeBpert contact specialist4I and
Ilead contact specialist3supervisor. But don6t insult agents6 intelligence by creating only new job
titles - be sure to tie in formal s1ill sets and 1nowledge re;uirements needed to achieve each
Icontact specialistI level4 and4 most importantly4 implement a s1ills-based pay program that
rewards agents financially for continual development. To help fend-off3reduce agent burnout in a
small environment4 tap the talent and creativity of each agent when wor1ing on off-phone
projects. 9mpowering agents and creating job diversity is essential to retaining staff in a small
call center for as long as possible.
Personality /raits Often +ound In 0ood Customer .er"ice Re%resentati"es
8ere are the primary attributes of successful agents listed by call center professionals who
participated in the study"
• >ustomer service s1ills and eBperience4 including an ability to wor1 well with the public
and an ability to adopt a customer perspective
• Technical s1ills4 including proficiency with computers4 support systems and 1eyboarding
s1ills
• &trong verbal communication s1ills4 including good voice ;uality4 diction4 and
articulation.
!dditional hiring criteria identified include"
• !pplicant is positive4 enthusiastic4 non-confrontational and professional
• .emonstrates willingness to learn
• 8as ability to wor1 under pressure and handle multiple tas1s.
Im%ro"ing the accuracy of Wor!force forecast
Matching up call center resources with the demands of the wor1load is a critical part of call
center planning. This responsibility goes to the heart of Incoming >alls Management Institute6s
definition of call center management" Incoming call center management is the art of having the
right number of people and supporting resources in place at the right times to handle an
accurately forecasted wor1load at service level4 and with ;uality.
!ccurately predicting the wor1load presents one of the most important4 and often most
challenging steps in this effort. ithout a good wor1load forecast4 the rest of call center planning
is an Iuphill battleI at best. !nd4 when predictions are off the mar14 there is a tendency to loo1 to
those who do the forecasts for eBplanations. 8owever4 the person Dor group# who does the
forecasting may be highly trained4 e;uipped with the latest in forecasting software4 and armed
with every conceivable !>. and database report and still be unable to produce good forecasts
if they aren6t made aware of what mar1eting is up to or if reps are handling calls inconsistently.
Twelve ways to improve the predictability of the wor1load are summari=ed below. 9ach is
outside the realm of what is usually thought to be the forecasting process. <et4 each is essential
to an accurate forecast.
). Use 1C2 modes consistently. 9ach rep has an impact on the components of handling
time Dtal1 time and after call wor1# and4 therefore4 on the data that will be used in
forecasting and planning for future call loads. hen the ;ueue is building4 it can be
tempting to postpone some after call wor1 Dwrap-up# that should be done at the time of
the call. This s1ews reports4 causes planning problems and may lead to increased
errors. !n important and ongoing training issue is to define ahead of time which types of
wor1 should follow calls and which types of wor1 can wait.
'. 3m%hasi4e -uality. &upervisors and reps can feel that the pressure of a bac1ed-up
;ueue forces them to ma1e tough tradeoffs between seemingly competing objectives4
such as service level and ;uality. 8owever4 although service level and ;uality seem to
be at odds in the short term4 poor ;uality will negatively impact service level over time
by contributing to repeat calls and other forms of waste and rewor1. This will contribute
to wor1load volatility and inconsistencies. The emphasis should be on handling each
call correctly4 regardless of how bac1ed up the ;ueue is.
3. 1"oid call*ac!s. Many call centers have discovered the hard way that giving callers
the option to leave a message when the ;ueue gets bac1ed up often bac1fires. $or
eBample4 you may call bac1 only to get perpetual busies4 ring-no-answers4 voice mail or
somebody else in the person6s wor1 area DIsorry4 she stepped away for a momentI#.
!nd in the meantime4 the caller may call the call center again.
! minority of call centers do have success with a callbac1 strategy4 particularly when
reps have to do some amount of preparation in order to handle the calls4 or when the
center is flooded with calls because of a once-in-awhile occurrence. &till4 most call
centers find that4 in the end4 it ma1es more sense to handle the inbound calls when they
arrive.
/. 1ntici%ate and manage growth. .o an analysis of the li1ely impact of growth on your
call center. This often ta1es the form of a chart or document that illustrates the projected
costs and time-frames of growing the call center in increments4 such as ten percent
growth in call load4 twenty percent growth4 thirty percent growth4 and so on. The
document should illustrate re;uired lead-times and 1ey decision points associated with
things li1e additional wor1stations4 new or upgraded e;uipment4 or a new facility Dsee
0otes4 Canuary )FF+#.
*. 2e"elo% *etter ties with other de%artments. This should be an ongoing effort in any
call center. Most of what happens in a call center is caused by something going on
outside the center. The forecast is doomed if strong ties with other departments don6t
eBist. There6s no substitute for 1nowing well in advance when mar1eting is running the
neBt campaign4 when manufacturing is releasing the new products and when finance is
redesigning the terms and conditions.
+. 5a!e forecasting a colla*orati"e %rocess. Involve supervisors and lead reps in the
forecasting process4 on a rotating basis. This yield two positive results" )# they will
better understand the pulse of the call-load and what6s behind the schedules Dand will
often adhere to them better as a result#4 and '# because they are continually dealing
with callers4 they have their Iear to the groundI and can help anticipate caller reactions
to changes and developments in the mar1etplace and the organi=ation6s services.
5. /rac! a*senteeism. If you are part of a networ1 of call centers or if you have overflow
routines established between call center groups4 absenteeism in one area has a direct
impact on the wor1load in another. It is important to anticipate absenteeism in advance
and4 contrary to conventional wisdom4 it is reasonably predictable. $or eBample4 in wor1
groups with typical Monday through $riday schedules4 unscheduled absenteeism tends
to be higher on Monday and $riday than the other days of the wee1. 8ave someone
trac1 absenteeism4 and loo1 for patterns.
2. 1ntici%ate the factors affecting caller tolerance. The seven factors of caller
tolerance include motivation4 availability of substitutes4 competition6s service level4 level
of eBpectations4 time available4 who6s paying for the call and human behavior. Putting
some thought into these factors goes a long ways towards anticipating caller behavior.
F. /rac! and manage non%hone acti"ities. $orecasting non-phone activities such as
research and correspondence is a challenge. Many call center managers4 used to
having detailed information on the call-load4 long for similar reports on non-phone
activities. $ortunately4 as with inbound calls4 these activities often occur in predictable
patterns4 and usually have a strong correlation to other forecasts4 such as the inbound
call-load4 units of sales or number of customers Dand they are usually a lot less time-
sensitive than incoming calls#. Investigate the trac1ing capabilities in your !>.4
forecasting3staffing software and computer database. !s a last resort4 trac1 these
activities manually4 as they occur.
)(. Better educate callers. The inbound call-load tends to be less erratic when callers are
aware of other service alternatives De.g. services via faB bac14 voice response units or
the orld ide eb#. Billing inserts4 focused advertisements4 newsletter articles4 and
customer support sections in user manuals are all eBamples of ways to better educate
callers on the service alternatives available.
)). 5inimi4e transferred and escalated calls. !n eBcessive number of transferred and
escalated calls will wrec1 havoc on the wor1load forecast. %tili=e ;uality improvement
tools4 such as flow charts and cause and effect diagrams Dsee &ervice @evel 0ewsletter4
0otes column4 May )FF*# to address root causes. >ommon problems include
insufficient training4 insufficient authority4 incomplete or missing database information
and poor call routing design De.g. calls often end up in the wrong place to begin with#.
)'. 1ccom%lish as much as %ossi*le during tal! time. hen tas1s related to inbound
calls can be completed with the caller still on the line4 errors are usually reduced.
$urther4 the time reps would otherwise spend in more discretionary Dand less
predictable# wor1 modes4 such as after call wor1 or auBiliary modes4 is minimi=ed.
/he !ey %erformance measurements for indi"iduals
ant to start a lively discussion among call center managersH $loat the issue of performance
measurements for reps. &ince performance measurements are usually tied to eBpectations and
standards4 that will raise issues about fairness4 what reps can and can6t control4 why people
have different capabilities and drives4 and the processes they are wor1ing within. $ew subjects
elicit such strong and varied opinion.
>onse;uently4 there are about as many different sets of performance measurements and
standards as there are call centers. 8ere4 we will loo1 three types of performance
measurements -- calls per hour4 adherence and ;ualitative measurements -- commonly used in
assessing individual performance. e6ll also discuss why calls per hour are fading4 while the
other two types of measurements continue to gain acceptance.
Calls Per Hour Is +ading
Traditionally4 calls per hour have been an almost universal productivity measurement. In fact4
many call center managers have viewed calls per hour as virtually synonymous with
Iproductivity.I &ure4 there have always been concerns about sacrificing ;uality for ;uantity. But4
in practice4 calls per hour has been the preferred benchmar1 for establishing productivity
standards4 comparing performance among reps and groups4 and assessing the impact of
changes and improvements to the call center.
8owever4 as a measure of performance4 calls per hour is Dand always has been# problematic.
Many of the variables that impact calls per hour are out of the rep6s control" call arrival rate4 type
of calls4 1nowledge of callers4 communication ability of callers4 accuracy of the forecast and
schedule4 adherence to schedule Dof others in the group# and absenteeism4 to name a few.
There are also mathematical realities at wor1 that are not within the control of an individual. $or
eBample4 smaller groups are less efficient Dhave lower occupancy# than larger groups4 at a
given service level. &ince the number of calls is changing throughout the day4 so does average
calls per hour for a group or an individual in the group.
!nd4 as is often pointed out4 if calls per hour are over-emphasi=ed4 ;uality can suffer. ?eps may
even Itric1I the system to increase their call count and achieve a standard. DMany call center
managers get a sheepish smile when this point comes up in discussion. One could surmise that
more than a few4 once upon a time4 have IaccidentallyI clic1ed off or erroneously transferred a
call or two#.
&ome call center managers convert raw calls per hour into an adjusted measurement that is
more fair and meaningful. $or eBample4 occupancy4 which is not within the control of an
individual4 can be Ineutrali=edI by dividing call handled by percent occupancy. Others go a step
further4 and develop statistical control charts to determine whether the process is in control4
what it6s producing4 and which reps4 if any4 are outside of Istatistical control.I
But even with further analysis4 calls per hour begins to lose meaning as technologies such as
>TI4 s1ills based routing4 and web integration4 which enable increasingly sophisticated and
varied call handling routines4 proliferate. $or many who have depended on calls per hour4 this
has left a vacuum" 8ow can we measure productivity in an increasingly varied and compleB
environmentH 9nter adherence and ;ualitative measurements4 which continue to gain
acceptance.
1dherence 5easurements
!dherence factor4 or signed-on time4 is a measurement of how much time an individual is
available to handle calls versus the time he or she was scheduled to handle calls. If adherence
factor is 2*,4 a rep would be eBpected to be in adherence .2* B +( minutes4 or *) minutes on
average per hour. !dherence consists of all plugged-in time4 including tal1 time4 after call wor1
Dwrap-up# time4 waiting for the neBt call4 and necessary outgoing calls. @unch4 brea1s4 training4
etc.4 are not counted as time assigned to handle calls. !dherence factor should be established
at a level that is reasonable and that reflects the many things that legitimately 1eep reps from
the phones. It should also fleBible Dadjustable downward# when call volumes are low.
&ome have developed adherence factor into a more refined measurement that also
incorporates timing -- when was a person available to ta1e calls4 in addition to how much time
they were available. The idea is to ensure that people are plugged in mid-morning when calls
are barreling in4 and saving special projects for Thursday and $riday afternoon when calls slow
down. !>. and forecasting3staffing software has improved adherence reporting significantly in
recent years.
The advantage of adherence factor is that it is reasonably objective. ?eps cannot control
variables such as the number of staff scheduled to answer calls4 the number of calls coming in4
the distribution of long and short calls or the distribution of easy and difficult calls. But they can
generally control how available they are to ta1e calls.
6ualitati"e 5easurements
In most call centers4 ;ualitative criteria4 which focus on 1nowledge of products and services4
customer service and call handling s1ills4 and the policies of the organi=ation4 continue to
become more refined and specific. Most use some form of monitoring Dsilent4 with a beep tone4
side by side4 or record and review# to evaluate individual performance and identify training and
coaching needs.
!n important and developing aspect of ;uality is that reps ta1e the necessary time to do the job
right -- no more4 no less. This means not rushing calls4 but also not spending eBcess time on
calls over and above what is necessary to satisfy callers and handle them completely and
correctly. If ;ualitative measurements are refined enough to insure that reps are spending the
appropriate amount of time handling calls4 then adherence and ;ualitative measurements ma1e
a powerful pair. In fact4 measuring calls per hour is unnecessary.
This is easier said than done in environments where ;ualitative measurements are vague and
indeterminate. !nd4 many managers still believe that trac1ing production outputs4 such as calls
per hour or average handling time4 is necessary. But the trend is clear" well-defined ;ualitative
measurements are beginning to erode reliance on measurements that are after-the-fact outputs.
/he factors that affect caller tolerance
There are seven factors that affect caller tolerance. They influence everything from how long
callers will wait in ;ueue to how many will abandon4 how many will retry when they get busy
signals4 and how they will react to automation4 such as a E?%. They also affect how callers
perceive the service the call center is providing. They are as follows"
• .egrees of motivation - 8ow motivated are your callersH >allers eBperiencing a power
outage will usually wait longer to reach their utility than those with billing ;uestions.
• !vailability of substitutes - !re there substitutes the caller can use if they can6t get
through to the initial number they are tryingH If they are highly motivated and have no
substitutes4 they will retry many times if they get busies and will generally wait a long
time in ;ueue if necessary. But if they 1now of an alternative number to try4 or if there
are other selections in your automated attendant4 they may try those alternatives. Or
they may try faB4 eb or E?%-based services.
• >ompetition6s service level - If it6s easier for callers to use competitive services or if they
have a tough time reaching you4 they may go elsewhere.
• @evel of eBpectations - !n organi=ation or industry6s reputation for service - or the level
of service being promoted - has a bearing on caller tolerance.
• Time available - $or eBample4 a caller6s occupation can affect caller tolerance. .octors
who call insurance providers are infamous for being intolerant of even modest ;ueues.
?etirees4 on the other hand4 may have more time to wait.
• ho6s paying for the callH - In general4 callers are more tolerant of a ;ueue when toll-
free service is available. They are intolerant of even short waits when they are paying
for premium priced numbers De.g.4 F(( service#.
• 8uman behavior - The weather4 the caller6s mood and the time of day all have a bearing
on caller tolerance.
Jeep in mind that these factors are not static. They are constantly changing. 9ven so4 it is
important to have a general understanding of the factors affecting your callers6 tolerance.
0lossary of Industry /erminology
.l7
8o7
/erminology 3'%lanation
) 1*andoned Call ! call terminated by the caller prior to being
answered
' 1*andoned Call
Rate
! measurement of abandoned calls usually
eBpressed as a percentage of total calls
received.
3 1C2 1utomatic
Call 2istri*utor
! telephone system that distributes calls to
agents according to predefined business
rules.
/ 1CW 1fter Call
Wor!
The time ta1en by an agent to complete the
transaction after the caller hangs up4 is also
referred to rap up time
* 1dherence to
.chedule
?efers to the adherence of staff to their
rosters or hours of wor1.
+ 1gent The person who handles the call
5 1H/ 1"erage
Handling /ime
The average time ta1en to handle a call4 can
include actual tal1 time and after call wor1.
2 1.1 1"erage
.%eed of 1nswer
! measurement eBpressing the time ta1en for
a call to be answered either by an agent or
!uto !ttendant.
F 1uto 1ttendant ! telephony facility that routes calls according
to the selections made by the caller pressing
the 1eys on the telephone.
)( 1"aila*ility ! measurement covering an agent who is
available to handle the neBt call.
)) Blending ! process where individual agents are able to
operate across multiple function calls at the
one time i.e. an agent that processes inbound
service calls and outbound sales during their
shift.
)' Call 2emand 9stimated number of calls that are eBpected
to be received by the centre.
)3 C9I Call 9ine
Identification
!n I&.0 facility that displays the callers
number.
)/ Cold Calling Telemar1eting to prospects with whom there
is no established relationship.
)* Cost %er Call ! measurement of the financial cost of each
call4 usually calculated by the centre costs
being divided by the number of calls received.
)+ CR5 Customer
Relationshi%
5anagement
! process that records customer contacts and
information to allow for an enhanced relation
with the customer.
)5 C.R Customer
.er"ice
Re%resentati"e
!n alternative name for an agent
)2 C/I Com%uter
/ele%hony
Integration
! function that provides for the telephony and
customer information to be aligned. This
allows for such functions as screen popping.
)F 3rlang C ! formula used in centres to calculate staff
needs based upon historical call trend data.
'( +CR +irst Call
Resolution
! measurement of the number of calls that
are resolved during the first contact with the
caller.
') +/3 +ull /ime
3-ui"alent
!n eBpression of staff numbers calculated on
the number of hours a full time staff member
would wor1.
'' Intelligent Routing The routing of calls through predefined
business rules that are based upon the
eBpected characteristics of the caller.
'3 I:R Interacti"e
ice Res%onse! system that interacts with callers using
predetermined menus and telephone 1ey
input4 or speech recognition software.
'/ 9ogged On here an agent is logged into the phone
system
'* 5ystery .ho%%ing here performance is measured through the
use of dummy calls4 usually conducted by a
third party.
'+ Occu%ancy ! measurement of the time actually spent by
an agent handling calls against the total time
available
'5 P1B; Pri"ate
1utomatic Branch
3'change
the switch which manages calls with an
organi=ation.
'2 Predicti"e 2ialler ! system that automatically initiates outbound
calls and presents the call to an agent on
connection to a called party.
'F 6ueue ! ban1 of calls waiting for an agent to become
available.
3( Roster ! schedule of time to be wor1ed.
3) .corecard ! group of performance indicators that reflect
the operations of the centre.
3' .hrin!age !n allocation of time from rosters that
accounts for unscheduled brea1s4 i.e.
unplanned leave
33 /al! /ime Measurement of time that an agent spends
tal1ing to callers.
3/ /hru Call Per Hour The actual number of calls handled by an
agent in an hour
3* UP. Uninterru%ted
Power .u%%ly
&ystems in place that cover normal power
supplies i.e. battery4 generators.
3+
ice Res%onse %se of a pre-recorded message to answer incoming calls
35 :OIP
ice O"er Internet Protocol
&ystem that enables voice calls to be carried
over a data networ1.
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