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Outsourcing To India: A Customer Service Persepective

2328 words - 9 pages

1.0 IntroductionThe key to a company's success is good customer service. Regardless of whichever 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 [1]. With the advent of CRM's, outsourcing customer service needs became more appealing.Outsourcing is becoming one of the most rapidly growing industries. According to the National Association of Software and Service Firms, the global outsourcing market has grown from $96 billion in 1998 to $151 billion in 2000. India is the leading offshore outsourcing country, where they dominate 80 to 90 percent of the total offshore development revenue worldwide [2].The aim of this paper is to present an in depth look at outsourcing customer service to India. In particular the paper will discuss the need for outsourcing customer service, outsourcing to India and the benefits and risks associated with outsourcing a company's CRM. A case study will follow showing how outsourcing can be used to increase customer retention.2.0 The Need for Outsourcing Customer ServiceOutsourcing 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 [3]. 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. The decision to outsource should address the critical role of information and processes in companies. If an entire function is to be outsourced, adequate terms should be made between the two companies to deal with the company's requirements. Furthermore, attention should be given to the potential need for innovative solutions to be provided by the outsourcer, as well as the timing of these actions [4].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...

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