Call Center Outsourcing1 minute
7 Facts on Virtual Contact Center Outsourcing
There are long-standing and compelling reasons to consider outsourcing contact centers, including cost savings and improved ROI. However, with the continued focus on customer experience driving a multi-channel delivery model, it is important to consider other key elements beyond cost.
Before any final decisions on outsourcing can be made, it is important to consider the most effective model. Recent technological advances have improved the ability for outsource partners to provide more cost-effective virtual services. The remote agent model has proven ROI and typically saves money over an internal brick and mortar call center. However, there are still some skeptics who believe that remote agents cannot be as effective as those in a brick and mortar facility. That is simply not true.
What is a remote agent model?
A remote agent model is a type of organizational structure where a company or business hires individuals to work remotely from their own location rather than having them work from a central office or location. Remote agents can work from home, a co-working space, or any other location that is not a traditional office. They communicate with their employer and colleagues through various forms of digital communication such as email, messaging apps, video conferencing, and other collaborative tools.
Remote agent models are becoming increasingly popular as technology makes it easier for individuals to work from anywhere in the world. This model allows companies to access a larger pool of talent and reduce overhead costs associated with maintaining a physical office space. Remote agents can also benefit from increased flexibility, improved work-life balance, and the ability to work from anywhere they choose. However, effective communication and collaboration are critical for success with a remote agent model, and companies need to have the right tools and processes in place to ensure that remote workers are productive and engaged.
How do you assign or calculate the value of benefits of a remote agent?
Assigning or calculating the value of benefits of a remote agent requires a careful analysis of the impact of remote work on various business outcomes. Here are some key factors to consider when assigning or calculating the value of benefits of a remote agent:
One of the main benefits of a remote agent model is reduced overhead costs associated with maintaining a physical office space. Businesses should estimate the cost savings associated with reduced rent, utilities, and other expenses related to office space.
Remote agents often have more flexibility and autonomy, which can lead to increased productivity. Businesses should estimate the potential impact of increased productivity on revenue and cost savings.
Access to a wider pool of talent
Remote work allows businesses to access a wider pool of talent that may not be available in their local area. Businesses should estimate the potential impact of accessing a larger pool of talent on their ability to attract and retain top talent.
Improved employee satisfaction
Remote work can lead to improved employee satisfaction and retention. Businesses should estimate the potential impact of improved employee satisfaction on their ability to attract and retain top talent, as well as potential cost savings associated with reduced turnover.
Remote work can lead to reduced absenteeism due to factors such as improved work-life balance and reduced commuting time. Businesses should estimate the potential impact of reduced absenteeism on productivity and cost savings.
To calculate the value of each benefit, businesses can use a combination of quantitative and qualitative data. For example, they can estimate cost savings based on actual expenses related to office space, or conduct surveys or interviews to gather qualitative data on employee satisfaction and productivity. By carefully analyzing the impact of remote work on various business outcomes, businesses can assign a monetary value to each benefit and calculate the overall ROI of their remote agent model.
When considering a remote agent model, consider these facts on Virtual Contact Center Outsourcing:
- Security is of paramount importance – technology has advanced to the point that high-levels of security can be achieved. Many virtual contact centers perform sales and order functions and are PCI compliant. In order to handle these transactions, the security remains a high priority.
- Productivity is high – often those unfamiliar with the success of virtual contact centers are concerned about agent management. An “out of site out of mind” mentality sets in. However, remote agents are unencumbered by typical office distractions and find they are more productive. Plus, they are happier working at home and therefore highly motivated.
- Training works well – virtual training and eLearning platforms make knowledge transfer simple. Plus, there is a continually growing repository of good information that the remote agent can reference at any time, ensuring continued growth in skills and knowledge.
- Cultures are positive – it is just as easy to develop a solid culture in a virtual environment as it is in any organization. The success factors are the same – start at the top, be consistent, ensure great communication channels, and hire the best people.
- Agents are motivated – there is a misnomer about remote agents. These people are motivated to do their best. Plus, you get a technology savvy, motivated person since those traits are required to be successful in a virtual environment.
- Customer Experience is a priority – simply put, its better.
- Quality is superior – the same technology applies whether an agent is in-house or virtual. The process of quality assurance does not change. What is different is the virtual environment calls for a more proactive, consultative approaching to quality. By coaching remote agents through changes and challenges, the contact center, the client and the customer are all better served.
5 Steps on how to Measure ROI of a Remote Agent Model
Measuring the return on investment (ROI) of a remote agent model requires careful consideration of various factors. Here are some key steps that businesses can take to measure the ROI of their remote agent model:
Determine the costs
Businesses should start by calculating the costs associated with implementing and maintaining a remote agent model. This includes expenses such as software and hardware costs, training, communication tools, and any other expenses related to managing remote workers.
Identify the benefits
The next step is to identify the benefits of a remote agent model. These can include reduced overhead costs, increased access to a wider pool of talent, increased productivity, and improved employee satisfaction.
Assign value to benefits
Once the benefits are identified, businesses should assign a monetary value to each benefit. This can be done by estimating the potential impact on revenue, cost savings, and other factors.
The ROI can be calculated by subtracting the costs from the benefits and dividing the result by the costs. This will provide a percentage that indicates the return on investment.
Monitor and adjust
Businesses should continue to monitor the ROI of their remote agent model over time and make adjustments as necessary to ensure that they are maximizing their return on investment.
How To Calculate ROI of outsourcing?
The method used to calculate the ROI of outsourcing may be similar to the method used to calculate the ROI of a remote agent model, but there are some differences. Outsourcing typically involves contracting with a third-party provider to perform specific tasks or functions, whereas a remote agent model involves hiring individuals to work remotely for the organization.
Here are some key differences to consider when calculating the ROI of outsourcing:
Outsourcing may result in cost savings associated with reduced labor costs or other operational expenses, but these cost savings may be offset by the cost of contracting with the third-party provider. Businesses should carefully consider all costs and benefits associated with outsourcing to accurately calculate ROI.
Outsourcing may result in improved quality of services or products, which can lead to increased customer satisfaction and revenue. Businesses should estimate the potential impact of improved quality on their revenue and bottom line.
Access to expertise
Outsourcing can provide businesses with access to specialized expertise or skills that may not be available in-house. Businesses should estimate the potential impact of accessing specialized expertise on their ability to deliver high-quality products or services and differentiate themselves from competitors.
Outsourcing may help reduce certain types of risk, such as compliance or regulatory risks. Businesses should estimate the potential impact of reduced risk on their bottom line.
To calculate the ROI of outsourcing, businesses need to carefully consider all costs and benefits associated with outsourcing, including any risks and potential long-term impacts on the organization. By doing so, businesses can accurately estimate the potential return on investment and make informed decisions about whether to outsource certain functions or tasks.
The truth is that outsourcing became popular strictly because cost savings were the primary objective. This model created a serious gap in customer service quality, resulting in another mass change, often in-sourcing the contact center, creating even more cost for the company. However, there are other, more effective ways to consider outsourcing. Virtual contact centers support transaction volume for supplemental, incremental and seasonal adjustments unlike any brick and mortar center. When added up, the formula is simple – virtual contact centers have more to offer and are an excellent choice when considering outsourcing.
Learn more with our Ultimate Guide to Outsourcing Customer Service.
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Chief Marketing Officer
Published on April 24, 2023
Published on April 24, 2023