Offshore

Offshore is a term typically used to describe the outsourcing of call centre work to another country to access cheaper labour rates.

Why does that matter?

Labour accounts for approximately 70% of the running costs for a call centre so by accessing cheaper salaries offshore, it has a large impact on the overall cost structure.

Common offshore call centre locations used by Australian businesses

For Australia, typical offshore locations include the Philippines, Fiji and South Africa.

Pros and Cons of using an offshore call centre

I’ve always been a big believer in saying no one sends their contact centre offshore to improve the customer experience.

The primary motivation is nearly always to save costs.

And save money you will.

Depending on the location, you could save up to 70% off the running costs of a similar size operation in Australia.

The question a business needs to decide is whether saving costs at one end (cheaper call centre costs) is going to cost you more money at the other end (customers leaving).

With the rapid progression of Artificial Intelligence, many of the low-value transactions, typically the mainstay of offshore call centres, can now be automated.

And with the Australian Dollar’s value declining against many of the major currencies, the value proposition is certainly not what it used to be.

However, lower costs to run your contact centre offshore can allow you to employ more call centre agents (which can reduce wait times for busy centres) or open longer hours (which can improve the ability for customers to contact your business) so like all things, there are a number of factors to consider if sending your call centre work overseas is a good thing for your business.

Recommended next steps

  • If you’d like to learn more about the pros and cons of using overseas call centres we’ve got lots of expert articles
  • If you’d like to engage an offshore call centre you’ll find a complete list of suppliers on the free CX Directory where you can search by country and experience or find an experienced consultant who can help.

Upcoming Industry Events:


Sharpen the Saw – Manager to Leader

$600
Scheduled
Event Organiser:
Auscontact
Virtual/Online

In this Sharpen the Saw - Manager to Leader training course you'll build your skills as a leader to better leverage your team, their ideas, skills and experience.

Customer Service Emails – Dec 2020

$397
Scheduled
Event Organiser:
CX Skills
Zoom

The December 2020 Customer service emails training course is designed to equip frontline correspondence Team Members and their direct Team Managers with the knowledge and skills needed to effectively (with style) and efficiently (with a focus on reducing unnecessary repeat contacts) better manage complaints and enquiries received via emails.

Workforce Management Essentials

$3800
Scheduled
Event Organiser:
Auscontact
Virtual/Online

This 3-day course is designed to teach you the foundations of good Workforce Management principles (WFM), and how to implement them in your own business.

Be the first to comment

Leave a Reply