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Fri, Nov 16, 2007 11:26 EST

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Posted by: Stephanie Overby in Questions Topic: Partner/Vendor ManagementBlog: Talent Show
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I had a candid conversation with a IT/BPO services company CEO yesterday. That I was on the phone with an executive at an IT vendor is not itself unusual. I talk to them quite often for one of two reasons: either I'm working on a story they can provide some insight about, or I'm taking what's called an editorial briefing to satisfy my publisher. This call was actually the latter. These calls fall into two camps. Either the CEO sounds like he's reading from a press release and has a ready (and boring) answer to every question or he lets down his guard and we have an actual human conversation that's enlightening or funny or just plain old enjoyable. This call was actually the latter.
The conversation was with P.V. Kannan, co-founder and CEO of 24/7 Customer, based in Los Gatos, Calif. with the bulk of operations in India and an expanding presence globally. 24/7 Customer's web site says it's "the world's first global integrated customer lifecycle management services company." Which means, the company operates call centers.
Usually you can tell within the first few minutes of these vendor briefings what kind of call you're in for (and whether you might be best served trying to "multi-task" while on the phone). But when you mention your theory that everyone's been quick to put a stake in the ground in China, but no one seems to have an actual strategy... and instead of equivocating or explaining his own reasons for setting up shop in China, the CEO actual agrees wholeheartedly, you perk up.
On that note, I thought I'd share a bit more of what Kannan talked about.
The declining state of "customer service":
Part of the issue, says Kannan, is that most of his clients view customer care as a "problem" they want to get rid of. "That leads to very narrow thinking," says Kannan. On the other side of the phone is a customer who already thinks the company is rying to evade him, having to hunt for number to call about the Byzantine bill he just got in the mail from company X.
Company X, meanwhile, thinks with all the technology out there, the problem should already be solved. "They think you have IVR (interactive voice response systems) and a kick-ass web site and everyone will go there," says Kannan.
"No one owns the customer in large companies," Kannan says. You can't go into any large bank and say, "I'm your customer." You're divided up. You're a credit card here, a mortgage there, a high-net worth individual or a customer you don't want. Then there are the divisions of marketing, IT, customer care, etc. "It's time someone stepped back and said what are we doing with this?" Kannan says.
The end-customer complaint that Indian call centers are frustratingly "process-driven":
The process complaint is a problem with any call center, whether located in Chennai or Chatanooga. The process issue just comes to the fore when "the caller also thinks, this guy doesn’t understand me so he’s being mechanical." The issue is that is what those call center agents are compensated for: adherence to process. "You get dinged if you don't say, 'Is there anything else I can help you with at the end of the call, even if you can tell by their tone that they're in a hurry and just want to hang up," says Kannan. "It gets subtracted in your QA score and you lose some portion of your variable pay." Call handle time is also important: "You
Good management is good management. Good call center management is good call center management; it doesn't matter where it happens to be located. If there are gaps in customer support it can be traced back to lack of training, lack of process, lack of technology etc., all of which reside in management’s hands. To answer the specific question, customer dissatisfaction is a management issue and should not be directly attributed to a location.
The true question is that of investment. To date, what I have seen first hand is that the investment in 2nd and 3rd world countries is greater than investing in technology and efficiency programs in the U.S (or any country of origin for that matter). The travel, training and infrastructure support cost out weigh the dollar per hour gains in nearly every instance. Executives are following trends that make sense at a high level but loose their luster after the true cost of implementation is revealed.
its not just large companies, no company wants to "own" the customer, no matter what they say...its too much work/cost and they dont want to spend the money...I get lip service like this all the time...off shore, no way, Daisy in India just cant service the customer cause they just dont get it.....Ive changed customer service vendors 3 times in the last 3 years..its very painful...they always say they want the business (that is they want the money) but the service is just plain bad...its a difficult problem and it takes alot of work but it can stay on shore and it can work...
jack
John Spencer
vp, cio (you can tell Im a cio, its sat. night and im on email answering this)
ASHP
3016648681
Call centers within the U.S. have a communication problem. The majority of people who work in call centers DO NOT LISTEN to their callers. They follow their script. This problem is magnified with off-shore call centers. Knowledge of the English language and the ability to comprehend verbal communications are not the same thing.
A call center that takes product orders can easily be re-located to India or other countries. A call center designed to help customers resolve problems requires the ability to understand the dialog.
I have worked with professionals from India and China. They have a cultural impediment that prevents them from asking questions when they do not understand. As a result, they may not understand the problem but that doesn't stop them from guessing at a solution which is a waste of everyone's time and negatively impacts customer service.
If you ask for a superviser in a U.S call center, you can improve your chances of getting a resolution. If you ask for a supervisor in an Indian call center, you are probably getting their co-worker who will also have the same comprehension problems.
Bottom line: Use of off-shore resources is a cost-effective solution for some services such as order entry but it is not an appropriate solution for problem support.
According to the data (reports) I have collated and analyzed, results show that since India was colonized by the British, outsourcing to their country by UK based companies was not much of a problem to the British consumers with regard to customer service. Agents in India have a better chance of building good relationship with their British customers since they are using British English and they are somehow familiar dealing with them.
How about U.S. customers? Reports also show that agents in the Philippines can build better relationship with U.S. customers since they were colonized by the US before and that majority in the Ph use American English. Most of them have neutral and/or Standard American Accent that most of the time you would'nt even realize that you are talking to someone outside the US. They can easily comprehend to US customers because of their westernized communication and way of living. Even Singapore Call Centers, whos clients are based in the US, are getting agents in the Philippines.
If we are talking about cost or customer service, I believe we just need to know where to put up Call Centers, how to do efficient training, analyzation, management and the likes because it doesnt really matter if its in the country or not if we are talkin about attitude [to learn (communication skills, product specifics)and to serve(soft skills, going the extra mile)], because its everything in customer service.