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A Complete View Of Crm Outsourcing

2004 words - 8 pages

Outsourcing - An Inside LookThe key to a company's success is good customer service. Regardless of which industry one is a part of, customer care is of utmost importance. An increasing number of organizations are realizing that with growing competition, new technological innovations and constantly improving services and products, consumers are being pulled in different directions. It is vital to ensure that customer loyalty programs are an integral part of an organization. Acquiring new customers is important, but holding on to existing customers is crucial. After all if existing clients are satisfied they will help in acquiring new ones by spreading the news of the outstanding customer services. To serve customers better, many companies have adopted a Customer Relationship Management (CRM) system. These systems integrate people, process and technology in order to maximize a company's relationship with all their customers (American Society for Quality 1). With the advent of CRM's, companies have been looks outside the company boundaries for aid in such a demanding customer service field. More precisely, the companies are looking to tender their CRM responsibilities to an external party in some form of a contract. This is commonly referred as outsourcing and it is becoming one of the most rapidly growing industries.The Need for OutsourcingOutsourcing is a company's decision to hire an outside firm to handle the company's computer operations, network operations, and IT function to a vendor for a specified time (Lankford 2). This strategic move is decided by higher management when they realize that the handling of these operations by another party will reduce costs and expenses. Customer Relationship Management (CRM) is a major component that many companies are looking to outsource due to the component's large scale and the importance. Customer service is a large component of CRM. When a company is heavily involved in keeping long-term relationships with their customers, they are, in effect, providing research into the types of customers that company is attracting. There are many definitions of CRM, but the American Society for Quality (ASQ) defines CRM as: "A strategy used to learn more about customers' needs and behaviors to develop stronger relationships with them. It brings together information about customers, sales, marketing effectiveness, responsiveness, and market trends. It helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers" (1).Although CRM is needed in all types of industries, every company likes to know the degree to which customer service is integral to the company. In the rapid fast-paced environment of the technology sector, CRM is seen as a critical component in the company and as an attempt to keep up with the latest technologies and trends. Bringing in large outsourcing companies such as EDS and IBM, who have specialized software, help companies make...

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