Offshoring Business Processes

Last year Blue Prism sponsored some research into off-shoring business processes, front office processes – contact centres.

The shocking (not) conclusion was that Young People Don’t Trust Offshoring.

Blue Prism cartoon

It’s very clear that customers do not like off-shored services so why do it?

The obvious answer is to save cost.  But our research showed that the maximum cost saving you could expect to realise is about 35% of the addressable workload.  Then work out how many extra complaints handlers you need in your own country, and an extra layer of management and there isn’t much left of the savings.  Is it worth upsetting your customers for such a small saving?

If you are a global organisation with distributed business processes across the globe then there is common sense in having presence in low cost locations relevant to each time zone and geographic region – but this isn’t off-shoring.  Or at least it’s not off-shoring to reduce cost, it’s off-shoring to improve service.

But what if your competitors are off-shoring anyway, and you are under pressure to cut your own costs, are there any alternatives to risking your customer experience by off-shoring your customer facing staff?  Of course there are…

Six sigma/Lean and other process improvement initiatives can yield 5 to 25% cost savings (of the departmental budget, not just the addressable workload).  I bet you can quickly Google a local consultant to help you out/get you started.

Local process automation using tools like Blue Prism Automate, Intersystems Ensemble, Jacada, or Openspan can save 10 to 20%.

Automated IVR, email and SMS systems offer up to 15% savings.  I particularly like Adeptra (automated voice) and Numero (automated email interpretation and handling) in this space.

There are many other initiatives I could probably name if I thought hard enough.  The thing about the cost cutting measures above is that they actually improve customer service.  Off-shoring rarely does this.

One Response to “Offshoring Business Processes”

  1. Joe Says:

    Offshore is in the first generation. They will continue to improve and reduce cost.

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