This thesis focuses on call centers offering their services to companies, which choose to outsource customer contact. The goal of this study is to portray the industry and establish key success factors. Several environmental and organizational characteristics are depicted and the influence of two important aspects is outlined as they are the personnel and trust as a key factor governing the client relationship.
The results suggest that the outsourcing call center industry is driven by the need of flexibility, the strong connection with the clients and trust as a basic requirement. Companies operating in this business tend to show signs of maturity, pay much attention to the management of the human resources, and combine leveraging their core competences globally with adapting flexibly to the clients’ needs and wishes. When managing the workforce, the agency theory applies. Hiring, training and monitoring processes are therefore of crucial importance and need to be adjusted carefully to the services offered. Continuous observation and adaptation is vital to the call center’s success. Pinpointing and targeting the training needs and fine-tuning the monitoring system are imperative.
Surprisingly, when looking at the client relationship, the principal-agent problem does not exist, since the success of both partners it tied together very strongly. Trust and integration are therefore the main factors driving this success. Trust is assessed by using Numan’s (1998) framework, which focuses on balancing complexity, risk, control and uncertainty with trust, which in turn is shaped by beliefs. These relationships are found to hold true in this industry and the importance of trust reached the highest value available, when questioned. The main goal of a call center is to provide such an excellence service to the client that it becomes indispensable.
Table of Content
1 Introduction
1.1 Introduction to the Call Center Industry
1.2 Research Motivation
1.3 Problem Statement
1.4 Research Contribution
1.5 Research Approach
2 Outsourcing
2.1 Introduction
2.2 Definition
2.3 History and Evolution
2.4 Trends
2.5 Advantages and Limitations
2.6 Challenges
2.7 Trust
2.7.1 Definition
2.7.2 Related Concepts
2.7.3 Trust and Outsourcing
2.7.4 Relationship with the Client
2.8 Conclusion
3 Call Center
3.1 Introduction
3.2 Definition
3.3 History and Evolution
3.4 Trends
3.5 Special Characteristics
3.5.1 Personnel
3.5.2 Relationship with the Client
3.6 Conclusion
4 Research Goals
4.1 Introduction
4.2 Environment
4.2.1 Cultural Dimension (Hofstede and Trompenaars)
4.2.2 Competitive Environment (Porter)
4.2.3 Uncertainty of the Environment
4.3 Organization
4.3.1 Type (Mintzberg)
4.3.2 Strategic Global Orientation
4.3.3 Nature
4.3.4 Organizational Lifecycle
4.3.5 Competitive Strategy (Porter)
4.3.6 Organizational Structure
4.3.7 Corporate Culture
4.4 Personnel
4.4.1 Labor Supply
4.4.2 Training
4.4.3 Monitoring
4.5 Relationship with the Client
4.5.1 Orientation towards the Client
4.5.2 Trust
4.5.3 Contract
4.5.4 Project
4.5.5 Data Security
4.6 Conclusion
5 Research Design
5.1 Introduction
5.2 Research Objective
5.3 Research Method
5.4 Sample Choice
5.5 Research Execution
5.6 Conclusion
6 Findings
6.1 Introduction
6.2 Mondial Assistance Deutschland GmbH
6.3 Harte-Hanks CRM Services Belgium N.V.
6.4 eti Sales Support Europe B.V.
6.5 PFSweb Europe B.V.
6.6 cologne: callcenter gmbh
6.7 Maincom Telemarketing Services GmbH
6.8 Minacs Worldwide GmbH
6.9 Synovate GmbH
6.10 Conclusion
7 Discussion
7.1 Introduction
7.2 Environment
7.2.1 Cultural Dimension (Hofstede and Trompenaars)
7.2.2 Competitive Environment (Porter)
7.2.3 Uncertainty of the Environment
7.3 Organization
7.3.1 Type (Mintzberg)
7.3.2 Strategic Global Orientation
7.3.3 Nature
7.3.4 Organizational Lifecycle
7.3.5 Competitive Strategy
7.3.6 Organizational Structure
7.3.7 Corporate Culture
7.4 Personnel
7.4.1 Labor supply
7.4.2 Training
7.4.3 Monitoring
7.5 Relationship to the Client
7.5.1 Orientation towards the Client
7.5.2 Trust
7.5.3 Contract
7.5.4 Project
7.5.5 Data Security
7.5.6 Success
7.6 Conclusion
8 Conclusion
8.1 Summary and Conclusions
8.2 Managerial Implications
8.3 Limitations
8.4 Future Research
9 References
9.1 Articles and Books
9.2 WebPages
Research Objectives and Core Themes
This study aims to provide a comprehensive industry analysis of call centers acting as Business Process Outsourcing (BPO) providers. The primary research objective is to identify and analyze the environmental, organizational, and operational factors that determine the industry's structure and influence the success of call center outsourcing relationships, with a specific focus on the role of trust, personnel management, and the client-provider interaction.
- Analysis of the external environment, including cultural factors, competitive forces (Porter's Five Forces), and environmental uncertainty.
- Examination of organizational characteristics using theoretical frameworks like Mintzberg's typology and organizational lifecycle models.
- Evaluation of personnel as the critical production factor, focusing on labor supply, training, and monitoring processes.
- Assessment of the client-provider relationship, emphasizing the role of trust, contract design, and data security in ensuring successful outsourcing.
Excerpt from the Book
2.1 Introduction
In the last ten years, outsourcing changed from a tactical option to a standard business procedure and strategic management tool. While during the early 1990’s, outsourcing was considered the last resort, companies nowadays focus on their core competences and use contracting out as a device to streamline their operations. Today it is customary to have outside companies provide most of the peripheral services (like transport and IT) in order to be able to concentrate on primary business processes. In addition, several firms started outsourcing more central services as well. The best example in this context is Nike, a sporting goods company, who outsourced everything but the design and the marketing of its goods. Even manufacturing is contracted out. (www.handelsblatt.com)
This chapter will characterize business process outsourcing in depth. Firstly, the term and related concepts will be defined. Secondly, the history and evolution of contracting out will be outlined, before finally tracing the current trends. Part 2.5 provides a detailed overview on the advantages and limitations of outsourcing, while the following subchapter describes the challenges. Before a conclusion will summarize the illustrated facts, a concept closely connected to outsourcing will be portrayed, namely trust. The concerned subchapter – 2.7 – will define the term and related concepts, establish the relationship between trust and outsourcing, and illustrate the relevance of this model for this thesis. Applying trust to outsourcing customer contact, the focus will lie on the relationship between the BPO provider and his client.
Summary of Chapters
1 Introduction: Provides an overview of the call center industry, identifies the research motivation and problem statement, and outlines the overall research approach.
2 Outsourcing: Defines outsourcing as a business practice, details its history and trends, discusses its advantages and limitations, and explores the vital role of trust in outsourcing relationships.
3 Call Center: Offers an overview of the call center industry, defines different types of centers (inbound/outbound), and examines key industry trends and special characteristics like personnel and client relationships.
4 Research Goals: Translates the research problem into specific sub-questions and theoretical hypotheses, covering environmental, organizational, personnel, and client-relationship factors.
5 Research Design: Describes the methodology used for the study, including the exploratory research design, sample selection, and the execution of face-to-face interviews.
6 Findings: Presents an overview of the eight companies researched, documenting their structure, core competences, and the nature of their business processes.
7 Discussion: Synthesizes and discusses the findings of the research, evaluating the hypotheses developed in Chapter 4 against the collected empirical data.
8 Conclusion: Summarizes the key insights, offers managerial implications for call center operators, acknowledges study limitations, and proposes directions for future research.
Keywords
Call Centers, Business Process Outsourcing (BPO), Customer Relationship Management (CRM), Trust, Outsourcing Strategy, Organizational Structure, Personnel Management, Client Relationship, Porter’s Five Forces, Service Level Agreements, Monitoring, Staff Turnover, Workforce Management, Competitive Strategy, Global Outsourcing
Frequently Asked Questions
What is the core focus of this research paper?
The paper provides an industry analysis of call centers acting as BPO providers. It examines the factors that shape this industry and determines what drives success when outsourcing customer contact.
What are the central themes discussed in the thesis?
The work centers on four main themes: the external environment of call centers, their organizational characteristics, the management of the personnel as a primary production factor, and the critical nature of the client-provider relationship.
What is the primary research goal or guiding question?
The research is guided by the question: "What are the factors determining the industry of call centers as BPO providers and what are the factors that influence success, when outsourcing the customer contact?"
Which scientific research method is applied?
The study employs a qualitative, exploratory research method. This involved conducting semi-structured, face-to-face, in-depth interviews with representatives from eight different companies to gather detailed insights.
What topics are covered in the main body of the work?
The main body investigates environmental factors (using Porter's Five Forces and cultural theories), organizational structures (applying Mintzberg's typology and lifecycle theories), and the operational and relational challenges involved in managing outsourced customer contact.
How is the research characterized by key terminology?
The study is characterized by concepts such as "outsourcing," "trust," "client integration," "staff turnover," "personnel quality," "competitive advantage," and "service level agreements."
How does the author define the role of trust in call center outsourcing?
Trust is identified as a fundamental requirement due to the high complexity and unpredictability of the business environment. It acts as a buffer against uncertainty, risk, and the need for excessive control measures.
How do cultural differences impact call center outsourcing?
Cultural differences play a significant role in contract design and trust-building. The study suggests that partners from similar cultural backgrounds may require less explicit contracts, while managing international relationships requires high flexibility and adaptability in values and communication.
- Quote paper
- Maria Kimme (Author), 2004, Calling the Customer - An Industry Analysis of Call Center as Business Process Outsourcing Providers, Munich, GRIN Verlag, https://www.grin.com/document/34947
