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Overview |
1 |
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Catalyst |
1 |
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Summary |
1 |
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Key Messages |
2 |
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Agent attrition and price increases are becoming more interdependent |
2 |
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Attrition is hurting contact centers globally |
2 |
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Outsourced pricing is being impacted by operational and exogenous factors |
2 |
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Agent attrition and cost rises have the potential to hurt outsourcing business |
2 |
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Table of Contents |
3 |
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Table of figures |
4 |
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Table of tables |
4 |
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Market Opportunity |
5 |
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Why are we writing about pricing and attrition? |
5 |
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Agent attrition is rising globally |
5 |
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Contact center prices continue to rise |
5 |
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Pricing and attrition pressures are interconnected |
5 |
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Client satisfaction is affected by agent churn and price increases |
5 |
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What is causing agent attrition? |
6 |
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Organic inflation |
6 |
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Inter-vertical competition for talent |
6 |
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Overheated contact center sectors |
6 |
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Poor management and supervision |
7 |
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Contact center functions |
7 |
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Lack of career progression opportunities |
8 |
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Regional attrition discussion |
9 |
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Onshore markets |
9 |
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US and Western Europe |
9 |
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Mature offshore markets |
10 |
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Canada |
10 |
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India |
10 |
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Philippines |
10 |
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Mexico |
11 |
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Emerging offshore locations |
12 |
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European nearshore |
12 |
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South Africa |
12 |
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Outsourced contact center pricing |
13 |
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Rising prices |
13 |
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Agent-related costs |
14 |
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Foreign Exchange Volatility |
15 |
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Pricing survey |
15 |
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Domestic outsourced pricing |
16 |
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Mature offshore markets |
16 |
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Emerging offshore markets |
17 |
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Customer Impact: how pricing and attrition affects outsourcing clients |
18 |
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Attrition and price hikes are already affecting clients and prospects |
18 |
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Higher price points |
19 |
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Quality concerns |
20 |
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The possibility of alternative business models |
20 |
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Go to Market |
22 |
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Recommendations |
22 |
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Understand issues in the local market affecting pricing and attrition |
22 |
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Culture |
22 |
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Local economic issues |
22 |
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Macro-level challenges |
23 |
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Develop clear career paths for agents |
23 |
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Ensure realistic and value-added benefit packages |
23 |
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Fulfilling work atmosphere |
24 |
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Preventative recruitment measures |
25 |
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Frequent feedback sessions |
26 |
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Augment supervisor training |
26 |
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Explore blended business models |
26 |
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Mitigate cost rise risks through financial instruments |
27 |
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APPENDIX |
28 |
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Methodology |
28 |
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Further reading |
28 |
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Ask the analyst |
28 |
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Datamonitor consulting |
28 |
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Disclaimer |
28 |
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List of Tables |
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Table 1: Onshore inbound customer care hourly fully-loaded pricing: 2008 |
16 |
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Table 2: Onshore inbound customer care hourly fully-loaded pricing: 2008 |
16 |
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Table 3: Emerging offshore inbound customer care hourly fully-loaded pricing: 2008 |
17 |
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List of Figures |
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Figure 1: Factors leading to attrition in outsourced contact centers |
9 |
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Figure 2: Inflation rises across selected offshore delivery locations: 2007 |
13 |
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Figure 3: USD versus Euro: 2004 - 2008 |
15 |
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Figure 4: Major contact center headaches among in-house providers |
19 |