Global trends, Regional impact

Consultant • Analyst • Writer
Contact Centres
Global Trends – Regional Impact
Tuesday 20 April 2010
www.rodjones.co.za www.c3africa.com

Themes :
2009 > 2010 : From Crisis to Growth:Driving Operational Efficiency and Reducing Cost
Insights for High Performance into 2010
Sources:

Focus Points
Key Challenges for 2010 and beyond
The SA Contact Centre Industry – An overview
Ten Years Down the Line
Key Strategic Trends into 2010
Staffing & Manpower – “The Winds of Change”
The SABS Contact Centre and BPO Standards
Major Technology Trends
Outsourcing
Connectivity
Public Sector Service Delivery
Social Media – The Social Customer
Legislative Issues
The Energy Crisis – The ‘Green Stampede’

Five Key Challenges
Into 2010
Increase
Customer
Satisfaction
Reduce Cost
Of Operations
Increase
Efficiencies
Increase
Revenue
Reduce
Risk
Doing a lot more …..
With a lot less …..
Without compromising quality
Fulfilling The Key Elements
of Most Organisations’ Strategic Plans

The South African Contact Centre and BPO IndustrySome High-Level Stats

How Many Agents in SA ?
150,000 to 175,000

Regional Split of Contact Centres in South Africa
•
Bloemfontein
(Free State)
•
Johannesburg
(Gauteng)
•
Durban
(KwaZulu Natal)
Cape Town
(Western Cape)
•
Port Elizabeth
(Eastern Cape)
•
Sample Size = 313

Types of Contact Centres in South Africa
Sample Size = 313

Breakdown of Contact Centre Activity in South Africa
Sample Size = 312

Main Nature of Contact Centre Activity in South Africa
Sample Size = 308

10 Year Comparison – Performance KPIs / Metrics
2008/9
1998
Performance Metric
65%
72%
% Calls Answered < 10 Secs
Ave. % Calls Abandoned
(Agent Queues)
12%
6%
81%
83%
1st Call Resolution Rate
39 secs
23 secs
Ave. Speed to Answer
Ave. Wait Time Until Call
Abandoned
45 secs
53 secs
% of Total Agent Capacity Utilized on Speaking to Customers
62%
57%
Ave. Time Taken to Respond to Customer Message (voicemail)
20 hrs
11 hrs
Source: Global Contact Centre Benchmarking Report 2008, Dimension Data

The Global Quest to Increase Operational Efficiencies
2.1 What are the three most important current main commercial drivers of the contact centre ??
Source: Global Contact Centre Benchmarking Report 2008, Dimension Data

Typical Contact Centre Costs
Source: Dimension Data Global Benchmark Report

Key Strategic Trends
Cut Costs – Deliver More – Increase Quality
A time for Introspection
Self Analysis – Auditing – Benchmarking
Implementation of Operational Standards (e.g. SABS)
Changes in the Staffing / Personnel Environment
More emphasis on WFM/WFO
More focus on Compliance Issues & Liability Protection
Sarbanes-Oxley / King III
Payment Application Data Security Standard (PA-DSS and PCI )
Sector Growth
Debtor Management & Collections
Sales and Revenue Generation
Resurgence of ‘Professional TeleMarketing’
Technologies
Towards Self-Service
Quality Assurance – Outsource QA / WFM
Interaction Analytics
Home-working agents / remote agents
Unified Communications
Outsourcing & Hosted Solutions
Increase Bandwidth
Reduced Telco Costs?
Access to applications and functionality
https://www.pcisecuritystandards.org

Moving Ahead into 2010 >
OLD PARADIGM
NEW PARADIGM
Call center is a support function
Call center is a source of value creation
Customer service is a company and product differentiator
Customer service is a necessary evil
Reactive mindset
Proactive mindset
Play catch-up with customer needs and expectations
Stay ahead of customer needs and expectations
Goal is customer advocacy and product differentiation
Goal is customer satisfaction

Manpower & Staffing
Working with the “Y-Generation”
Unionisation in Contact Centres
Chief Learning Officer (CLO)
Delivering career-pathing and employee engagement
New drive for Learning & Development
E-Learning
Wellness & Working Environment (Green)
Effective Workforce Management

17
Winds of change
Boomers Generation Generation
X Y
Generation statistics
Percent of population 41% 20% 14%
Ave. no. of hours spent at work per week 42.6 39.1 35.4
Percent reporting that their job 'severely' or 'very severely' interferes with their family life 14% 29% 36%
Percent of 'leavers' (people considering leaving their jobs) who cite work/life imbalances as a key reason 12% 45% 48%
Percent who would like additional responsibility in the workplace 60% 39% 23%
Percent of men who would like more flexible working arrangements 23% 69% 75%
Percent of women who would like more flexible working arrangements 65% 83% 85%
Percent of men who predict that they will work on a part-time basis in the next 5 years 1% 12% 19%
Percent of women who predict that they will work on a part-time basis in the next 5 years 15% 19% 36%
Percent reporting that they would leave their jobs for greater control over their work schedules 1% 66% 85%
Percent reporting that they would leave their jobs for greater flexibility 2% 59% 92%
Percent reporting that they would leave their jobs for the ability to work fewer hours 1% 48% 64%
Percent reporting that they would leave their jobs for the ability to telecommute 0% 50% 75%
Percent who expect to leave their current employers in the next year 43% 52% 70%
Used with permission
© 2007-2008 Quest Flexible Staffing Solutions. All rights reserved.

SA National Standards for Contact Centre and Back Office Operations
www.contactindustryhub.co.za
“Resources” Tab
www.bpesa.org.za

Background to The Standards
Initiated by the Department of Trade & Industry, The Business Trust and BPeSA in 2005
70 Member Project Development team
Consultants and Senior Operational Specialists
Developed over 2,500 ‘Best Practice’ Standards
Gazetted and Published in October 2008
Being assessed by ISO as the Base Standards for Global Use
Constantly Expanded and Updated
Categories Covered by The Standards
Leadership and Customer Satisfaction Management Practices
Operational Management Practices
Human Resource Management Practices
Technical Resource Management Practices
Compliance soon to be mandatory for certain grants and incentives !

Sector Growthin South Africa
Points for Discussion
Debtor Management & Collections
Sales and Revenue Generation
Outsourcing of QA / WFM
Resurgence of ‘Professional TeleMarketing’
Growth in Public Sector Contact Centres
Attracting International BPO
City of Joburg BPO Park

Motivated & Subsidised by City
Joburg CBD
3,500 Seats
Phase One operational Q2/3 2011

A Member of the Ascentys Group
SITE OVERVIEW

Key Technology Trends
Towards Self-Service
More demanding Customers
New ‘Tech-Savvy’ customers
More sophisticated technologies
Drive for cost reduction (human capital costs)
Automated Quality Assurance and Compliance
Interaction Analytics / Outsource QA/WFM
Security Issues & Liability Protection
The Advent of Interaction Analytics and Process Automation
Outsourcing & Hosted (On-Demand) Solutions
Increase Bandwidth
Reduced Costs ? / Easier Access
Remote (Home-based) Agents
‘Green Technologies’

Technology Drivers into2010
The key business drivers of cost reduction and revenue growth have given rise to a number of significant trends including :
Interaction Analytics
‘Offshoring’ and outsourcing
Self service
Growth of the virtual contact centre

Technology Drivers into 2010
“Another driver will be the desire by larger enterprises to insure business continuity and compliance with Sarbanes-Oxley.
The combination of quick deployment, minimum or no upfront investment, a tight correlation of revenue streams with expenses, and the ability to free up enterprise personnel to focus on core business functions makes the hosted contact centre solution an attractive and smart choice for such organisations.”
COMPLIANCE
RISK MITIGATION
OUTSOURCING
& HOSTED TECHNOLOGIES

The Contact Centre into 2010 >
Enterprises have cut technology spending
Reconsidering Options – ‘Sweat the assets’
Cutting Costs & Customer Retention
Customer Service becomes a key differentiator
The Challenge of Efficiency versus Effectiveness
Drive Costs down, Efficiency up – without compromising Quality
Organisations need to understand customers’ reasons for calling
Monitor & analyse calls
Equip agents with proper tools
Analyse calls to find skills gaps
The Art & Science of Call Avoidance
Drive for Compliance, Liability Protection and Quality Assurance
The Virtual Contact Centre & Mobile Agents
Adoption of new staffing models and WFM/WFO

Key Business DriversWhy Companies Outsource

CONNECTIVITY
The Game is on !
Global Surplus capacity
Pressure on tariffs
More competition (Telkom, Neotel, IS, MTN, Vodacom etc)
Roll-out of the Telkom (and other VARS) wireless network/s
Satellite Quality and affordability
The impact of WACS
Hosted Services (In the Cloud / telco)

Public Sector Service Delivery
Dramatically growing awareness of ‘Service Delivery’
Service=votes !
Reduce costs – increase efficiencies
Track ‘accountability’ / Security / ‘Corruption Management’
Influence / Impact of Trade Unions
Consolidation (Shared Services)
Outsourcing non core services
Outsourcing of Government & Parastatal Services
SAA Contact Centre / SA Tourism
Public-Private-Partnerships
Government data pooling / in co-operation with private sector data pools
Monitor & Manage productivity
Fraud Detection / Risk Management
PRIMARY INDUSTRY CHALLENGE
Educate government re benefits of Contact Centres and Outsourcing

THE SOCIAL MEDIA
THE SOCIAL CUSTOMER

THE LEGISLATION THAT MOST AFFECTS OUR INDUSTRY
The Access to Information Act
The Electronic Communications & Transactions Act
The National Credit Act
The Consumer Protection Act
The Protection of Personal Information Bill
This legislation WILL impact your business from 2010 onwards !

THE PROTECTION OFPERSONAL INFORMATION BILL
The aim of the bill is:
To give effect to the constitutional right to privacy
To regulate the manner of processing personal information
To fall in line with international standards for trans-border data flow
Status: Now with the Parliamentary Portfolio Committee

THE PPI BILLKey issues
The bill is based on the EU eight principles of data privacy (and could be in force within 18 months)
There are limitations on the right to process consumer data
You will have to notify consumers on your databases as to the use of the data and must remove their data on request
There are strict data security requirements
You will need a person’s permission to send a fax, e-mail, SMS or call using an IVR system (ie call with no human intervention by an agent)
You will need to register your databases with the Privacy Regulator, who will be able to enforce criminal sanctions
www.dmasa.org

Global Energy Trends:
Consumer demand for energy-efficient goods and services
Energy management as a powerful cost-save driver
Sustainability reporting [Finance + Environment + Social]
Increasing personal and collective accountability for action
Procurement policies score and monitor vendor responsibility
Investment in sustainable energy sources
China invests ± USD 9 billion per month on clean energy development
In SA to produce and consume 1kWh electricity requires:1.45 litres waterand emissionof 1kg of CO2

SA status of supply:
www.poweralert.co.zaSample taken 16 March 2010 at 15h50
General trend for some months has been ORANGE / RED
The Eskom grid is under strain – all of SA needs to conserve.
Prediction: Load shedding is on its way – late 2010 / 2011

www.rodjones.co.za rod@rodjones.co.za
THANK YOU
- Questions -
www.c3africa.com

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Global trends, Regional impact

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