Location, outsourcing and in-sourcing

At Analysys Mason we understand that no single operating model fits all businesses:

  • demand for inbound call-centre services continues to grow
  • outsourcing is growing worldwide
  • the UK and US far off-shore (e.g. India) is growing
  • research in 2003 showed that nearly 80% of outsource clients look to change supplier at the end of the contract
  • a small but growing number of UK outsourced services have returned home, mainly telesales 
  • a smaller but growing number of services have moved from India to South Africa or the US
  • the media habitually reports with a xenophobic bias – they love an off-shore failure.

We identify a suitable location and/or outsourcing strategy based on the client organisation’s true needs.

Location, outsourcing and in-sourcing


 

Figure 1: Location, outsourcing and in-sourcing

We help to address the key issues and produce location assessments, location criteria and business process outsourcing (BPO) evaluation check lists and streamline procurement methodologies with contract check lists.

Typical issues we base our recommendations on include:

-  Workforce:

  • size and skill of the labour force
  • relevant language skills
  • competition for resources
  • amount of time taken to travel to work
  • benefits and development expectations.

-  Cost base:

  • acquisition
  • transition
  • legal
  • premises
  • labour
  • telecommunications
  • legal frameworks, including repatriation of funds, tax and incentives
  • time zone relationship to customers, other locations and management
  • political environment, including governmental and economic stability
  • visa and work permit regime
  • stability and legality, of utilities and of telecoms required
  • other operators
  • proximity of suppliers and customers. 

Case studies

Project focus

 

Client type

Key project results

Maintaining standards in a captive centre in New Delhi

UK subsidiary of a major US finance group

        ·         Year 1 investment supported and the New Delhi site replicated services and standards in UK captive location 

        ·         Year 2 monitoring sustained decision to remain in India and increased ISA sales

Ramp up of a captive centre in Mumbai

New entrant UK mobile telco

·         Detailed management of ramp up planned and measurement and maintenance of standards in UK and India centres.

        ·         Mumbai measured as out performing the UK site for retention and new sales

Additional capacity for home delivery and store telephone calls

Major UK retailer with mega-store and significant home delivery services

·         Strategy agreed by board for division of activities between internal and partner resources. 

        ·         Completed tender, negotiations and migration for an outsourcer partner in UK, Europe, India and South Africa

Strategy for call and email handling

European publication and fulfilment operations of US media group

·         Strategy agreed by subsidiary and parent companies.

        ·         Tender and migration plan to move operations from Netherlands to an outsourcer partner in South Africa

Additional capacity to manage an unforeseen business peak caused by business review and FSA review

Major UK life assurance company

·         Tender, migration planning and post launch interim management to move operations from a UK HQ site to outsource partner sites in the UK and Ireland. 

       ·         Additional capacity delivered in weeks secured response levels required and led to increased work for the supplier

Centralisation of disparate units across Europe

US telecommunications supplier

·         Location strategy for centralisation of multi-lingual product support operations form 17 countries to one site 

        ·         Investment decision made in weeks to modify a production facility in Ireland to include a new-build call centre

Establishment of additional sales and services capacity to match business plan

Major established UK mobile Telco

·         Interim management of three outsourced contracts on a rota basis

        ·         Led to the appointment of a permanent contract manager and increased performance from the largest service provider

Restore standards and reduce costs of existing BPO services

UK energy re-seller

·         Identified key providers and short list for tender in UK and Ireland

·         Conducted contractual due diligence on existing supplier which resulted in significant improvements in quality and pricing regime 

        ·         Existing supplier improved commercial offer and performance


Contact

Graeme Sherman

Customer Care Specialist +44 20 7395 9000