Customer Service Buzz

“What level of cost savings can we expect after offshoring?”  It’s a question I get a lot.  The unsatisfying answer: “It depends.”  AT Kearney recently released a fascinating exploration into why.  In their Offshore Success Study, AT Kearney gathered data from 35 offshoring companies and analyzed what differences explain the drastic variability in performance across the high performers (who averaged 64% savings and often improved service quality) and the low performers (who only had an 18% average savings).

What’s responsible for this difference?  The Offshore Success Study finds that “execution strategy” – how you handle the transition – is more influential in determining success than variables like offshore location or process complexity.  In short, how you offshore matters more than where or what you offshore:

• Winners don’t focus on savings. The best performers emphasize improving operational performance rather than generating savings (and paradoxically achieve greater savings in the process!).
• Winners invest more to save more. Companies investing more in managing their offshore programs (bigger management teams, more internal on-site resources, strong cultural integration) achieve better performance and savings results.  The best performers had one onshore manager for 50 to 75 offshore FTEs (a ratio that may improve after the operation has stabilized).

So how do you become one of the ‘winners’ – one of those companies with the right execution strategy?  I would have three pieces of advice for someone transitioning to a new offshore location. Read More »

For years I’ve been saying “No” (a firm “No” at that) but recent findings push me to temper this inference.

Like any good researcher, my shift in opinion comes with plenty of data—particularly important for a topic rife with some very loud assumptions. 

CCC’s been measuring customer service preferences for over 5 years, and we always came to the same conclusion about service with an accent: it’s a constant “noisemaker.”  A customer complains about the offshore location only when something else goes wrong on the call (let’s say it was a transfer).  Poor service is seen as a product of the accent—“I didn’t understand the rep” says the customer—but the real problem is the transfer (and the customer would be just as negative if he had been transferred by an onshore rep).  If the transfer hadn’t happened, then the customer would have had no issue with the accent. 

Customers notice it, they mention it in surveys, but our data showed us that if the customer received proper service, rep accent had no meaningful impact on the customer experience.

This conclusion was corroborated by data from our prominent offshore members and bolstered by my nagging faith in global brotherhood (the citizenry behind “We Are the World” couldn’t possibly devalue discussions simply because the service rep sounded different than the weatherman).

Then this happened.  The recession not only changed where we eat and how we shop, but what we value in the customer experience.  Read More »