Communication Consulting - Marketing Consulting

Outsourcing of the Customer Dialogue

- by Jens Moeller © Copyright Jens Moeller Consulting Ltd 2011
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How do you find the ideal call centre service provider?
The second part in the new three part series looks at the search and selection of a call centre service provider.

Businesses often criticise the lacking comparability of bids from different service providers. In these cases service providers often did not provide all relevant information and often not the same information either. The client often omits the necessary criteria that asks the relevant questions, as outlined in Part 1. In the following we look at service provider selection criteria and the actual search and selection process.

As part of the selection process it is prudent to revisit the arguments, why outsourcing was chosen (see Part 1) – and the service provider should reflect exactly these reasons. Speed, flexibility, reliability and communication is important for any service and activity. Selection criteria can vary significantly depending on the nature of the business and should be identified individually – either internally or with external assistance. However, there is a small common denominator.

In any relationship, including a business one, you should feel looked after, even as your own client in the first impression on the telephone. The business activities and core competencies of the service provider should match the clients’ main business and activities. Good indications for this are references, understanding of the business sector, its rules and terminology, as well as the business roots and vision of the client. Well- phrased high gloss marketing literature is one thing, but it is vital to take up references, check business activities and get an impression on site.

Comletencies and creativity should be demonstrated by all involved in the future project. Quality needs to be maintained and developed – it is prudent to question approach and methods for this. The bid must demonstrate already that the service provider has understood the fundamental requirements. Output- and cost factors should be sufficiently explained and variable costs should be given an upper limit. There should also be at least a standard contract. In the following table information required in offers, as smallest common denominator of the vast variety of requirements, are shown.

Information in offers from Call Centre Service Providers

Business information on the service provider: background, activities, information on service sectors, size, capacities and sub-contractors, if necessary
Illustration of available project information: did the service provider understand starting points and challenges
Illustration of client's goal scenarios: did the service provider understand what the client wants to achieve
Illustration of available project information: potential call volume and its distribution, call and handling duration, project start, service times, service numbers and requirements for IT and telephony systems
Outline of the approach of the demands and management of the project.
Illustration of management of services and cost as controlling tools for the client: with which criteria and methods does the service provider measure services and cost? How is billing structured?
Illustration of all required service for the implementation and running of services, any additional services, their standard prices, mainly in the following categories:
- Initiation costs/project implementation: concept, briefing, staff training, technical facilities, pilot
- Project management: quality management/ supervision, administration, service and cost measurement (reporting, monitoring etc), continuous call optimisation and interface management
- Handling and administration: Inbound price per call, Fax, e-mail, cost per agent by minute or hour, outbound cost per successful contact (decision maker), commission in relation to targets (turnover, profits, appointments). Third party costs for service numbers, postage and other service costs, as well as additional service such as mailings of marketing and information material (lettershop and fulfilment)

The image of the service provider should be checked, having regard to the reputation and neutrality of the information provider. Real experiences of previous service users are always best. Size alone is not a quality criterion, but it can become an important factor with regard to capacity requirements in a single agency. The importance of the project for the service provider compared to others, including in terms of volume, is an indication for the motivation of the service provider. Neither party should become dependent on the other, due to the volume of the contract. A creative approach and ideas for improvement should be expected from any service provider. The location is more or less important, depending on the need for continuous information exchange of possibly sensitive data. The technical systems, including functionality and capacity should be checked onsite with experts from both parties. The service provider should demonstrate any systems with regard to the specific project requirements. Capacities and functionality should be inspected. It is worthwhile to have a conversation directly with the person in charge of technology. Are the agents used to dealing with the technical equipment? Can the system give instant data and evaluations on project activities and results? Consider running a pilot and test technology and connected processes.

Graphic 1: Search and Selection

Approach to Search and Selection of the ideal Service Provider

A business specific specification should be created, taking all of the above criteria into account. Overall goals and strategies should be broken right down to call centre activities. Then activities, which should outsourced, should be defined, including quality and quantity.

Potential service providers can be found in Yellow Pages, Service Sector Publications, Exhibitions, Consultants or Societies, such as the Call Centre Association. A decision matrix, point system or other scoring model should be used to reach a decision on which call centres to visit on site. The majority of candidates should be sifted out by setting minimum criteria, in order to have more time for a more in-depth selection.

The site visit should show whether reality matches the image of the call centre. Information and conditions that have been received so far from the service provider should be used as a basis for any further negotiations. Size, learn effects, reference potential and length of contract are all factors for negotiations.

There should be complete transparency with regard to costs, quotes for all variable cost factors, and full consultation before any limits are exceeded. Costs should not only based on time, but also on service provision. There should be enough margins left for profit in negotiations with the service provider.

Specific wishes with regard to the contract and business relationship should be defined and compared to the suggested contract model of the service provider. Any critical points should be discussed. The initial outsourcing model should be revisited. Any legislation with regard to data protection and data security needs to be taken into account and it should be discussed with the relevant data protection officer if necessary. The procurement team should include the business executive, project manager, IT specialist and possibly data protection officer and external consultant. For larger projects it might be wise to include a senior member of the clients’ finance department. The service provider should bring team consisting of at least the business executive, a dedicated project manager and IT specialist. The client’s legal representative should be involved in contract negotiations and should assist in drafting the contract.

Graphics 2 and 3 summarise these processes.

Graphic 2: Approach for Selection of Call Centre Service Provider up to the Invitation to Tender

Graphic 3: Approach for Selection of a Call Centre Service Provider