Outsourcing the CRM To overcome the limitations of CRM approach practiced by companies themselves, the companies worldwide contact

the outsourcing bureau or service provider to find the solution. This will facilitate faster and less bumpier alternative CRM route to reach the business destination. The outsourcing provider or bureau provides a CRM platform that offer an integrated blend of live agent and automated IVR, web and e-mail services, connected with contact management and if needed, integration with the business enterprise existing database. Many service providers have entered the CRM game that companies have almost too many choices. There are data base providers and call centers. Their are communications specialists. Most advertising agencies have their own direct marketing arms. Further there are technolog6y vendors. With all these, getting started on CRM should not be a problem. Outsourcing the CRM can reduce customer retention costs, with out compromising the responsiveness, accuracy, availability, and quality of customer service. In addition, businesses should strive to increase both their efficiency and quality and drive greater profits to their bottom lines. By outsourcing CRM and intelligence, companies will have powerful analytics with less payroll overhead. Meanwhile suppliers are delivering greater personnel accountability and ability to access software, technology and skill sets otherwise4 not available to a single company. Suppliers like interrelate promise greater revenue reduced marketing costs and shortened cycle time. Many companies have decided to outsource all or part of their CRM technology, applications and /or business processes to achievable improved processes, business improvement, more effective customer service, increased competitive advantage and a demonstrated ROI According to a survey reported in tele Professional magazine, Companies who fully outsource CRM had the most favourable results. This is reflected in a greater 10-year average return to investors, a higher average 10 Year annual growth rate and a larger average percentage change in annual earnings per share. Off shoring CRM Locations A large number of companies around the world have set up thousands of Off shoring call centers to provide integrated customer service solutions. Australia has about 4000 call centers employing 225000 people with US$7 billion revenue. Similarly India has nearly 1000 companies employing over 100,000 people with revenues of US$1 billion. Philippines and Ireland has 70 and 500 companies employing over 12000 and 40000 people respectively. Elements of CRM outsourcing CRM outsourcing includes the following elements: Customer support: this comprises value based phone support, e-mail response, live chat and co-browsing and instant messaging. Telemarketing and telesales: this covers outbound calling for lead generation, campaign management and outbound calling for cross-sell and up-sell to existing customers.

Employee IT Desk: this comprises level1 and 2 multi-channel support for internal applications; system problem resolutions related to desktop; notebooks; shrink wrapped products; connectivity; office productivity tools support including browsers and mail; new service requests; IT operational issues; and remote diagnostics Thames water is a good example for CRM outsourcing in the Utility industry. Thames water has signed a business process outsourcing deal with Xansa to offshore to India its metered billing expenses and Customer correspondence operations. The BPO service will handle over 700,000 transactions a year and in one month it has already handled predicted volumes and cleared a backlog of an extra 17 percent of transactions. Vital reasons to outsourcing CRM The compelling reasonsa to outsource usually include cost reduction, improved customer service, and access to leadind edge technology and avoiding significant capital investments. Cost reduction Many companies implemented the CRM outsourcing rather than seeking internal CRM solution due to heavy cost of in-house operation. This includes wages, rent, telecom charges, furniture, equipment, technology, IT resources, human resources and finance costs. Specialist Manpower Outsourcing firms have specialists who will select similar communities with competitive education for lower wages. Glopal employee bases make it easy for outsourcing providers to scale up quickly. Hundreds of multi-lingual representatives who speak Spanish, French and other languages and dialects are reasdily available. CRM is the outsourcer providers core competency. Handling multiple programs, leveraging experience and creating best practicesz is the product in which they specialize. Improved Customer Service Outsourcer providers have the ability to leverage highly skilled and well-trained resources. As an example , offering 24*7 multi-lingual customer support may not be a viable option for internal company operations . outsource firms utilize pools of customer service representatives who have the flexibility not only to improve service but also to significantly enhance it . with multiple service agents and advanced technology, a business can be assured that their customer calls and inquiries will be handled in a timely and efficient manner. Insight into improved customer service A major health insurers in-house operation received calls volumes that fluctuated widely as much as 400% month to month. Fixed staff provided varied service levels. Further the company had a persistent problem in retaining the qualified CSRs necessary to deliver a high level of service. After the company outsourced the program to ICT group, service levels consistently stayed at 95% or better at call volumes.

Technology Qualified outsourcing providers use best-in-class technology, which is available to them at lower cost, allowing them to offer state-of the-art CRM products and tools to their clients with in a comparative pricing strategy. Further the CRM provider offer a fully integrated technology solution using the latest versions of the most appropriate applications. Selection of an outsource service provider In selecting the outsource service provider, the business enterprise need to pay special attention very carefully for due diligence, contract agreement, cost structures, and vendor relationship. Due diligence Due diligence is critical in the selection of an outsource provider. This should include a site visit with the members of the company team who will interact with the service provider as well as representatives from the business units that will be supported. The team should include the subject matter experts in customer service, sales, technology and human resources. The following areas are important to evaluate and compare: personnel management structure; system configuration; facility configuration; customer service measurements and reports; management expertise; contact center structure; training capabilities; implementation practices and security

Contract The contract between the company and the service provider should reflect requirements and measurements that are well defined and meet the industry standards. Terms should clearly indicate measurement metrics for success or failure, rewards or remedies. The service level agreements should also clearly state how and over what time period the service delivery would be measured. The contract reflects consequences, addressing deficiencies and time guidelines for improvement, and should include an exit clause for failure or for a changed business climate. Cost Structures Cost structures should have clear definitions stating who is responsible for what expenses. Using the third party benchmarking data to determine current market rates for outsourcing. Vendor relationship as a Partnership The unique requirements of successfully outsourcing customer assets require a relationship that is mutually supportive. The provider offers expertise and best practices in customer service, technology and Cost management. The client brings subject expertise, company culture and industry experience. These two joint together in a symbiotic relationship will lead to a successful venture. The business enterprise should expect the service provider to offer proactive solutions based on their experience. The outsourcing provider should also meet continually the following; Continual cost improvements, proactive alignment with the companys business objectives; and refinement of roles, responsibilities, reporting and performance measures.

Limitations Even though the outsourcing to CRM provides valuable benefits to a business organization, but it still faces some problems. The business enterprises are losing much of their control of customers and services to another party. Another problem is technology implementation, database integration and agent selection and training issues with the service provider. These issues are more complex. Conclusion For selecting the right outsource provider, the business enterprises should take enough time, due diligence and clearly established and communicated goals and objectives. A successful relationship will be one that lowers the business costs, increase the companys revenue and retains profitable relationship a win-win situation for the companys business and its most valuable assets, and business customers.