Sydney call centre outsourcer closes

Sydney call centre outsourcer Peakbound closes
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Sydney call centre outsourcer Peakbound closes

Sad news with Sydney based call centre outsourcer Peakbound announcing the closure of their call centre operations effective immediately.  The announcement coincided with the handing down of the Royal Commission’s interim report into the Financial Services industry.

Peakbound was predominately a specialist outsourcer who was heavily focussed on the financial services industry. With the Financial Services industry under enormous pressure due to the unethical sales practices displayed by many of the banks,  most have recently pulled back from telemarketing and other sales activities to reduce exposure.  In particular, the number of campaigns run by external partners has been scaled back significantly and this has ultimately impacted Peakbound hard.

Having had some exposure to Peakbound over the years, I have always found them to be extremely high on ethics and compliance so it no doubt comes as a bitter blow as they, and potentially others, have ultimately paid the price for unethical practices conducted by others.

Nick Collett, General Manager Peakbound announced On the day the Royal Commission hands down its interim report, we close the doors on Peakbound. To say we were collateral damage doesn’t really do it justice. My lasting impression is the professionalism and grace with which my team handled the situation. While the financial services industry has to face into a number of challenges, we all know there was plenty of good and good intent in our clients and partners”.

At its peak, Peakbound employed around 500 staff in their modern contact centre premises located in Strawberry Hills, Sydney.

More call centre closures?

As much as it’s sad to see another local outsourcer close its doors, I don’t think we are about to see a flurry of further closures. In fact, my observations are quite the opposite with the local outsourcing market, and the broader contact centre industry, undergoing a bit of a resurgence. Whilst there are many underlying factors, some key contributors include:

  • With the Australian dollar tanking, the costs of offshore call centres are continuing to increase.  From parity with the USD in 2013 we are now down to ~$0.70 making the Philippines, in particular, more expensive (but still cheaper than here). iSelect and Whirpool are just two recent examples of businesses bringing offshore call centres back to Australia.
  • There is a growing trend of companies investing in their customer experience as their point of difference.
  • Technology is enabling businesses to automate simpler enquiries or move them to self-service and then invest those savings in their workforce to handle the more complex enquiries.

Whilst the contact centre industry is scattered across the country and across many different industry sectors, one thing I know is we are great at looking out for each other. So if you are able to help some of the former Peakbound team who have some great skills working in a highly regulated and compliant environment with customer service, sales skills etc either get in touch with us here on CX Central or join our private Facebook group for CX Professionals.

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Justin Tippett
I've been working in the contact centre/CX industry for close to 30 years and I unashamedly still love it.

I'm the founder of CX Group Australia, a group of businesses that provide a range of products and services to those working in the CX industry, and for businesses looking for resources, support and services to improve their Customer Experience.

You can also catch me on my CX Hustle Podcast on iTunes where I cover CX & Contact Centres for businesses and CX professionals.