center outsourcing is becoming a popular alternative to the on-premise, in-house call center.
Organizations looking to cut call center costs, address staffing challenges or shift the focus to
other areas of their business frequently consider outsourcers for customer-service support. These
10 terms will give you a clear understanding of the fundamentals of call center
Table of Contents
Call center outsourcing 101: Top 10 buzzwords
1. Nearshore outsourcing
2. Onshore outsourcing
3. Offshore outsourcing
5. Virtual call center
6. Total Cost of Outsourcing
7. Business process outsourcing
8. Service-level agreement
10. Core competency
Call center outsourcing 101: Top 10
outsourcing is when an organization outsources work to a neighboring country. For example,
a company in the U.S. might outsource work to Canada or Mexico. Nearshore outsourcing is practical
for many organizations because the geographical proximity between the company and its outsourcer
means that travel and communications costs are less expensive and people are more likely to speak
the same language.
- Learn if outsourcing is
right for your call center in this expert face-off.
outsourcing, also known as domestic outsourcing, is when an organization outsources work or
has services provided by another company within the same country. Onshore outsourcing is typically
preceived as more expensive than nearshore and offshore outsourcing.
- Read about the challenges of
call center outsourcing.
outsourcing is when an organization outsources work to an area of the world where labor
costs and taxes are much lower. Offshore outsourcing has its pros and cons. It is typically less
expensive than running a call center in-house, but there can be trade-offs in terms of customer
service and security. Those who object to outsourcing also argue that if an outsourcing
relationship doesn't work out, the cost of bringing operations back in-house down the road is often
higher than the initial savings.
- Learn how to calculate the
cost of offshore outsourcing.
Globalization refers to
the tendency of businesses and technologies to spread throughout the world. In theory,
globalization would create an interconnected marketplace that is unaffected by time zones and
national boundaries. The practice of outsourcing call center operations is one example of how
globalization impacts the way businesses function today.
A virtual call
center is a call
center environment where the call center agents are located in different areas around the world
rather than in one physical location. Outsourcers frequently run several different virtual call
center operations for a number of organizations.
- Find out how one company is using virtual call
center software to streamline its customer service operations.
Cost of Outsourcing (TCO) is similar to the "total cost of ownership," except that it
focuses on the cost of outsourcing in particular. The TCO includes labor costs, service fees and
the cost of implementing, managing and maintaining the relationship with the outsourcer. The TCO
can include the cost of training staff and purchasing additional technology that is needed to
monitor and manage outsourced employees.
- Learn how outsourced
Indian contact centers are managed.
outsourcing (BPO) is when an organization contracts a specific task to a third-party
provider. Usually, BPO is used to save money on tasks that the company requires but does not depend
on to stay competitive in the market. BPO is often divided into two categories: back-office
outsourcing, such as billing and purchasing, and front-office outsourcing, which includes
- Find out how on-demand
CRM can help organizations using BPO .
agreement (SLA) is a contract between a service provider and a company that addresses what
services the provider will supply. Information service (IS) departments in many enterprises now
write SLAs to keep track of and measure the services provided to the company by outsourcers.
- Get tips for preparing a SLA
for call center outsourcing.
E-outsourcing is when a
business buys IT products or services over the Internet instead of creating and deploying them
in-house. For example, an organization might hire an application service
provider (ASP) to provide certain back or front-office applications instead of creating and
installing these applications on their own. E-outsourcing can help organizations get up and running
faster than if they tried to deploy the technology in-house.
competency is an expertise or ability an organization has in a specific area. Many
companies outsource non-essential areas of their business so they can focus their time and
resources entirely on their core competency.
Take the call
center outsourcing quiz.
Buzzword definitions provided by WhatIs.com