Why the Cloud is Critical for Contact Center Outsourcing Profitability
February 27, 2013
The buzz surrounding the benefits associated with the cloud can seem like nothing more than hype. Vendors are pining for greater market share and why not flood the market with propaganda that supports a migration that secures their revenue strategy indefinitely? The problem with this argument is that the benefits associated with the cloud are very real and not just relegated to one industry. Vendors do have a vested interest in promoting the benefits of the cloud, but let’s break down the hype and get to the bare bones of what the cloud can deliver in the real world. A recent inContact webcast explored the potential of the cloud from the perspective of the outsourcer. The market today is shrinking fast and the contact center outsourcing company has to be able to maintain a competitive advantage and still make money. This video offers insight into how the cloud enables both. Tom Milligan (News - Alert), EVP of Sales & Marketing, Vector BPO broke it down into four things the contact center outsourcing company can do to increase profitability:
1) Differentiation. The contact center outsourcing provider no longer has to sell on price if they achieve differentiation on a consistent basis. The company has to be different as a way of life if they want to reap the benefits. But, according to Milligan, these companies make more revenue, close more deals and have a higher margin. They’re offering the features, functionality, people, workforce management, workforce management and social media that customers demand, at a price they can afford. Doing these things and doing them well is perhaps the most important thing to do today.
2) Reducing costs – capacity management must be maintained as it is the bigger cost drainer. There is mismanagement between technology and the outsourcing way of doing business. The legacy infrastructure simply cannot keep pace with the market and those holding on to old processes will quickly lose momentum and market share.
3) Workforce management – this is about making sure the people on staff are making the contact center outsourcing company money. Anything that makes labor inefficient is the biggest thing to work on if profitability improvements are a priority. These people need to be scheduled accurately using cloud-based tools as it’s the most effective approach to streamlining labor-related costs and keeping staff close in line with needs.
4) Close more deals – the contact center outsourcing company has to be selling all the time. It’s no longer feasible to simply sell on price. Companies have to offer more features to clients to meet their changing needs. This is something more possible with the cloud as it extends capabilities without breaking the budget. Plus, the cloud allows for scalability and flexibility, ensuring customers have what they need when they need it at a cost they can afford.
Edited by Amanda Ciccatelli
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