Personalised Learning

Impact of outsourcing commercial services

Vishal Sharma: 21501565

UNIVERSITY OF WEST LONDON
Table of Contents
Table of Figures..........................................................................................1
ABSTRACT...............................................................................................2
ACKNOWLEDGEMENT..........................................................................2
PLAGIARISM STATEMENT...................................................................2
Chapter 1: INTRODUCTION TO THE STUDY.......................................3
1.1 Introduction to the Problem..................................................................................3
1.2 Statement of the Problem.....................................................................................3
1.3 Conclusion............................................................................................................3
Chapter 2: ANALYSIS OF RESULTS......................................................4
2.1 Introduction..........................................................................................................4
2.2 Discussion of Results............................................................................................4
2.3 Subject Demographics..........................................................................................4
2.4 Determinants of Operational Success...................................................................5
2.5 Training................................................................................................................5
Chapter 3: FINDINGS AND RECOMMENDATIONS............................6
3.1 Conclusion............................................................................................................6
References..................................................................................................7
Appendix 1.................................................................................................7
Appendix 2(Gantt Chart)............................................................................8

Table of Figures

Figure 1: Frequency of Study Participants By Age..................................................4

Figure 2: Age and Experience.....................................................................................5
Figure 3: Training Hours............................................................................................6
ABSTRACT

Increasing numbers of British firms are outsourcing their call centre operations. This
move has aroused a significant amount of criticism. On the one hand, some
politicians argue that the trend has the potential to detrimentally impact employment
rates in Britain. On the other hand, customers are complaining that they are receiving
sub-standard service. Both claims are somewhat exaggerated as a review of the
literature indicates that while there are, undoubtedly, some poorly managed offshore
call centres, there are significant numbers of excellently managed ones as determined
through customer feedback. This study focuses on the said problem, in an effort to
uncover the key determinants of successful offshore call centre operations.

ACKNOWLEDGEMENT

Without the continued emotional and financial support provided by my parents, I may
have not reached the end of this journey. During my studies, there were times when
work commitments and intermittent financial stress made me believe that I would not
be able to see this journey through. It was during these times, and many others, that
my parents’ words of encouragement and their confidence in my ability gave me the
motivation to persist. No words of thanks can adequately express the depth of my
appreciation and love.

PLAGIARISM STATEMENT
Recognising that students have an ethical and moral obligation to ensure that all work
that they submit in their name is, indeed, their own and free of plagiarism, I exercised
caution throughout the writing process. When writing the dissertation, I made sure
that all my sources were meticulously acknowledged. Even so, there remained a fear
that I might have, inadvertently, plagiarised sections of my study or paraphrased
something without referencing it correctly.
Chapter 1: INTRODUCTION TO THE STUDY

1.1 Introduction to the Problem

Managing customer relationships is not a new concept. Since the
beginning of trade, sellers have focused on providing products and
services to satisfy their customers. Since globalization has brought about
an increase in competition for customers, the emphasis has switched from
customer acquisition to customer retention, particularly with the cost of
acquiring a new customer estimated at 4 to 10 times higher than simply
retaining one (Kumar & Kumar, 2002).

1.2 Statement of the Problem

Increasing numbers of British firms are outsourcing their call centres to
developing economies. Despite the economic benefits of doing so, there
are multiple challenges to outsourcing call centres, chief amongst which
is the management of the call centres and the agents and the achievement
of customer satisfaction.

1.3 Conclusion
As explained in this chapter, the study shall focus on the key
determinants of offshore call centre management. The next chapter
presents the literature reviewed for this study.
Chapter 2: ANALYSIS OF RESULTS

2.1 Introduction
The results of this study are based on a quantitative investigation of
customer satisfaction ratings related to a single offshore call centre. The
results are further based on the call centre’s employee perceptions on the
factors which influence operational success and their own ability to
satisfy their job requirements in such a way as would enhance customer
satisfaction levels.

2.2 Discussion of Results

As earlier noted, the questionnaire which was to be distributed to call
centre employees was emailed to the HR director, following which the
HR director sent them to call centre supervisors and operators. As the
researcher was briefly informed, the HR sent the questionnaire to their
call centre manager, specifying that participation was strictly voluntary.

2.3 Subject Demographics

Demographic information was collected from the entire participant group
using a survey questionnaire. Employees reported they had participated in
performance evaluation activities (n = 29, 72%) or answered they had not
participated at all.

Figure 1: Frequency of Study Participants By Age

In the employee questionnaire, the demographic questions were the same

as those for the employees but also included number of years at the
centre. The responses were as follows:
 Figure 2: Age and Experience

The ages of call center representatives ranged from 18 to 66 years. The

average age of call center representatives was 31.5 years, with the most
frequent age being 24 years. The years of call center experience ranged
from less than 1 to 28 years. The average length of call center experience
was 4.6 years, with the most frequent years of experience being 2 years.

2.4 Determinants of Operational Success

The study tested the following determinants of operational success, all of
hwhich were derived from the literature reviewed during the research
process and included in Chapter Two. These determinants are:
Technical training and expertise
Operators’ interpersonal communication skills
Staffing numbers
Length of time before agent picks up call and number of holds
Agent/operators’ linguistic proficiency

2.5 Training
Seven of the employee participants (17.5%) had not participated in any
training, whereas 19 participants (47.5%) had between 1 and 3 hours of
training each year.
 Figure 3: Training Hours

Chapter 3: FINDINGS AND RECOMMENDATIONS

3.1 Conclusion
Call centres are a relatively new phenomenon and most of the research in
this field has focused on call centre efficiency, optimal staffing levels,
and technology. A review of previous offshore call centre management
paradigms reveals an emphasis on the foregoing factors, in addition to an
interest in call centre supervisor-subordinate and peer-to-peer
communication patterns and relationship models. The purpose of this
study was the investigation of the key operational determinants of
successful offshore call centres. Upon investigating the stated, with
specific focus on a British telecommunications company’s offshore call
centres, the research found an immediate relationship between call centre
efficiency, optimal staffing levels, and technology, thereby confirming
earlier studies on the topic. The results of the primary data were displayed
in figures and tables in Chapter IV and these served to confirm the
literature review findings. That is, there are a set of key determinants for
the successful operation of call centres and these determinants, if applied,
can ensure that offshore call centres meet with the satisfaction of
customers in Britain.
References
Abramovsky, L. G. R. a. S. M., 2004. c. Sydney: ACA Research.
Adria, M. &. C. S., 2002. Making room for the call center. s.l.:Information systems
Management.
Allen, J. R. F. &. H. B., 2005. The three D’s of customer experience.. s.l.:Harvard
Business School Working Knowledge.
Andrews, B. &. P. H. (. 2. 1.-2., 1993. Establishing telephone-agent staffing levels
through economic optimization.. s.l.:Interfaces.
Baker, P., 2004. Managing the contact center workforce. Contact Center Today.
[Online]
Available at: http://www.ciotoday.com
[Accessed 3 August 2007].
Beaujean, M. D. J. &. M. S., 2006. The ‘moment of truth’ in customer service.. s.l.:
McKinsey Quarterly.
Berman, E. B. J. a. M. S., 1998. `Implications of skill-based technological Change:
International Evidence.’. s.l.:The Quarterly Journal of Economics.

Appendix 1
For Number of reasons event in Norway failed:
 Location being in Norway the bad weather might lead to failure
and debt, emphasizing the necessity for proper facilities, such as
tents.
 According to the case study, the project managers were members
of the boxing club who were in charge of the festival. Project
management is a challenging and time-consuming task that
requires mentoring, and experienced boxing club members are
unsuitable for this job. They are likely to ignore many details,
resulting in mistakes.

What could be done to fix the problem:

  According to the case study, the creator became bankrupt in year 5.
Hiring a project manager (professional) would have been beneficial
because they could have corrected some of the problems. A project
manager may be more efficient in preparing for the event and could
have assisted in planning around all of this or might have alerted
the creator of the danger.

Appendix 2(Gantt Chart)

Start Finish
Conference Event Duration
Date Date

Policing 26-Oct 5 31-Oct

IABPA 01-Nov 10 11-Nov
Business 12-Nov 5 17-Nov
Hospitality 18-Nov 20 08-Dec
Law 01-Dec 15 16-Dec

Gantt Chart

Law

Hospitality

Business

IABPA

Policing

26-Oct 5-Nov 15-Nov 25-Nov 5-Dec 15-Dec

Start Date Duration Finish Date