New Industries Emerging in CRM Outsourcing Industry

by: Outsourcing Insider

New industries are emerging in the CRM outsourcing [customer relationship management] space. This is according to independent consulting research and analysis firm, Ovum. The new report, released on the 12th of October, advised that healthcare, government and utilities are slated to have the strongest growth in customer relationship management (NYSE:CRM) for 2011, in terms of demand.

According to report author, Peter Ryan,

This will be driven by the need to reduce operating costs in the face of an increase in the number of calls from the public seeking advice on schemes such as unemployment benefits. At a time of economic uncertainty, we believe that government decision makers will view outsourcing overhead heavy contact centers as a wise move.

Call center services have already been increasing in demand this year alone, as mentioned in a previous article. Countries such as the Philippines, Australia and Chile have all indicated increase in revenues, seats and employment amongst the contact center industry.

In Egypt, call center outsourcing company, Xceed, announced plans to double its workforce by 2013, wherein the company’s vice president, Osama Nazmy, stated that Xceed's business is currently booming. “Business is very profitable and I see it growing and expanding in the future.” Other companies such as Convergys (NYSE:CVG) and Sitel (SWW), have also announced hiring’s for contact center positions. Some, such as global banking and securities firm, JP Morgan & Chase (NYSE:JPM) and international hotelier Hilton Worldwide, are both shifting their call center support services offshore, specifically the Philippines.

Meanwhile, in line with the shift towards the healthcare space, Xerox (NYSE:XRX) company, ACS, announced on the 15th of October that it is now one of the largest providers of customer services in the pharmaceutical, biotech and healthcare services after it acquired Florida-based healthcare teleservices company, TMS Health from Palm Beach Capital. According to group president, Connie Harvey of ACS Healthcare Payer and Insurance,

ACS is helping pharmaceutical companies make every customer interaction count - in a market that spends up to $12 billion per year on marketing to its stakeholders.

This pushes the company in an excellent position to answer the increasing demand in the sector.

But while the call center outsourcing services are on the rise, a report by RightNow (NASDAQ:RNOW) and Harris Interactive (NASDAQ:HPOL) highlight the effective use of CRM within a company.

In their report entitled the “Customer Experience Impact Report 2010”, companies who are able to provide superior service to their clients will likely enjoy higher revenues from their customer service, as compared to companies who are not able to deliver superior service. Likewise, poorly delivered customer service, which includes contact center services, could result in higher customer attrition, mainly due to rude staff or delayed issue resolution.

Most interesting though, is that while an unpleasant customer experience will likely alienate you from your customers, a superior customer service delivered to your customers would result in greater satisfaction and more effective word of mouth marketing by your customers. Likewise, the report emphasizes that people will be willing to pay more in order to have superior customer service.

In our age when everyone has an opinion and there are ever increasing ways to make yourself heard, the numbers are significant. The numbers show that while the demand for customer relationship management services is undoubtedly increasing and moving towards different industries, it is still essential to remember that aside from answering that demand, bpo providers must be able to provide excellent customer service outsourcing at every level.

Disclosure: No positions