Outsourcing

Introduction

Call centers are usually the backbone of customer service, when something isn’t functioning or someone needs help with products they purchased who are they going to contact? A call centre. A call centre has many capabilities such as helping customer resolve issues, guiding customers to help them with learning to use their product and allowing customers to send in complaints or ideas for improvement; this is the reason call centres exist, to give the customer hope and support. Over the years, call centres have been losing the total volume of calls due to high internet use. According to the 2012 article, internet vs phone, in Forbes magazine, we found out “Call centres are always going to be with us, they generate money, employment and customer service. The only problem with call centres is the waiting times and that is why more people are looking for online support” (Albreit, 2012). With online help, customers are able to get help instantly (if they have internet access) and get help without waiting. Now, imagine a successful call centre like Kiwal, they employ over 60 full-time technical support workers and 3 supervisors. The have over 500,000 contacts that cost them $1.40 per contact. Kiwal has the highest customer satisfaction and retention rates in Canada. Kiwals backbone of success is their online contact (call) centre, where they are able to help solve customer problems within 10 minutes through a “chat room”. Customers love their support and knowledge. Now, let’s look at a proposal that has been given to Kiwal from a company in Manila, Philippines. They are offering Kiwal a tempting offer to outsource the online call centre. Right now Kiwal is paying $3,920,500 a year and with the Manila proposal they can cut that cost down to $3,475,000. The workers in the Manila proposal speak fluent English and most of them finished College so many of the customers dealing with Kiwal won’t even notice a difference when dealing with people in Manila. A...