Managing the performance of outsourced customer contact centers

This research focuses specifically on customer contact services that have been outsourced to external suppliers. The performance of the contact services supplier directly affects end customer satisfaction which underlines the need for appropriate management of customer contacts and consideration of the end customer's perspective in designing appropriate key performance indicators (KPIs). This research draws on various streams of literature including services purchasing, performance management and service quality to derive propositions on how to manage customer contact services suppliers. These propositions are subsequently investigated in an in-depth case study. The results of the case study show that managing customer contact services suppliers on effectiveness rather than efficiency benefits the overall performance of the supplier. This research shows that quality improvements in both process and service delivery ultimately lead to decreased costs. These improvements will furthermore enhance customer satisfaction and improve buying company performance. The current trend in selecting and managing suppliers for outsourced business processes is on efficiency improvements and cost savings. However, this research shows that this type of focus can actually decrease customer satisfaction and increase costs.