In analyzing which customer engagements to keep in-house and which to outsource, companies need to look past basic cost reductions as a result of outsourcing and measure overall effectiveness and strategic customer experience. In the case of a call center, customer retention and the overall customer satisfaction (CSAT and NPS (Net Promoter Score) has to be included in the overall measurements of outsourcing effectiveness modeling.
A business leader must also weigh the strategic consequences of such decisions. Will any short-term savings in costs (through outsourcing) be countered by any long-term ramifications such as shorter customer retention and lack of satisfaction? Today many business execs are too often focused exclusively on an initial savings solution to cut costs and lack the strategic view of the customer experience and long term consequences of a negative interaction via poor customer service, technical support, or an unknowledgeable salesperson.
Some of the lowest customer satisfaction scores come from insurance, telecommunications, financial and banking industries which incidentally are some of the largest consumers of outsourcing call centers and customer contact engagements.
Thus the outsourcing question must be considered in the overall ecosystem of the business. Optimizing the outsourcing engagement entails deploying the right partner, managing the costs and understanding the long term view from the customer’s experience. The best business leaders grasp the customer ecosystem and measure outsourcing in a broader and long term view.