Many companies run call centers in-house, while others prefer to outsource call center to third-party vendors. Outsourcing is a great way to cut cost and access elusive skills of professional agents. However, there are many outsourcing ventures that fail miserably because of one reason or another. The cause of failure ranges from compromised security to the ineptitude of management and staff. But one thing that can prevent call center outsourcing failure is a well-written contract.
The Importance of a Call Center Contract
A contract is an obligatory document that needs to be signed before a partnership is created. In a contract, a client lays down the best practices, targets, penalties and the arrangement of partnership.
To understand the value of a contract, let’s look at a simple example. A call center payment model can be developed in two ways – Pay per Call (PPC) or Pay According to Time. In a scenario where you choose time as the measured criteria for calculating payment, it is possible that the vendor might extend the duration of calls at his own whims and fancies. This would mean a loss for the client. However, if you add Average Handling Time (AHT) as criteria (e.g. 10 minutes per call) and implement a penalty for exceeding time limit on calls, then the vendor won’t be able to deliberately exploit the payment model.
There can be a number of loss-making propositions in both outbound and inbound call center outsourcing venture. Hence, it is vital that you analyze every aspect before a contract is developed, and ultimately signed by you and a customer service outsourcing company.
Establish Transparency to Yield Best Results
A contract is a legally-binding document and the language can be hard to understand. Therefore, it is vital that both parties have a clear understanding, so that the information is relayed to the concerned teams at both ends.
The agents and managers who are undertaking a call center outsourcing project should be very clear about what is expected from them. If you are a client, you can hire a liaison manager and send him to the vendor location. This will allow you to enforce the contracts, rules, policies, and obligatory compliances with complete conviction.
Despite your best efforts and focus on contract, you can land in trouble if the vendor is not scrupulous and professional. Therefore, it is essential that you partner with a reputed customer Service Outsourcing company that has a positive image in the market.
A contract is a binding document that has a huge impact on a call center outsourcing venture. When you outsource call center, it is essential to create a transparent contract that is easily understood by both parties. Writing a contract that clearly mentions your expectations along with penalties (if targets are not met) is very important. It is also essential to choose a company with solid reputation in the market to ensure positive results.