Consultant  • Analyst •  Writer<br />Contact Centres<br />Global Trends – Regional Impact<br />Tuesday 20 April 2010 <br /...
Themes : <br /><ul><li> 2009 > 2010 : From Crisis to Growth:Driving Operational Efficiency and Reducing Cost
 Insights for High Performance into 2010</li></ul>Sources: <br />
Focus Points<br /><ul><li>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’</li></li></ul><li>Five Key Challenges<br />Into 2010<br />Increase<br />Custome...
The South African Contact Centre and BPO IndustrySome High-Level Stats<br />
How Many Agents in SA ?<br />150,000  to  175,000<br />
Regional Split of Contact Centres in South Africa<br />•<br />Bloemfontein<br />(Free State)<br />•<br />Johannesburg<br /...
Types of Contact Centres in South Africa<br />Sample Size = 313 <br />
Breakdown of Contact Centre Activity in South Africa<br />Sample Size = 312 <br />
Main Nature of Contact Centre Activity in South Africa<br />Sample Size = 308 <br />
10 Year Comparison – Performance KPIs / Metrics<br />2008/9<br />1998<br />Performance Metric<br />65%<br />72%<br />% Cal...
The Global Quest to Increase Operational Efficiencies<br />2.1 What are the three most important current main commercial d...
Typical Contact Centre Costs<br />Source: Dimension Data Global Benchmark Report <br />
Key Strategic Trends<br /><ul><li>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’
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Global trends, Regional impact

  1. 1. Consultant • Analyst • Writer<br />Contact Centres<br />Global Trends – Regional Impact<br />Tuesday 20 April 2010 <br />www.rodjones.co.za www.c3africa.com<br />
  2. 2. Themes : <br /><ul><li> 2009 > 2010 : From Crisis to Growth:Driving Operational Efficiency and Reducing Cost
  3. 3. Insights for High Performance into 2010</li></ul>Sources: <br />
  4. 4. Focus Points<br /><ul><li>Key Challenges for 2010 and beyond
  5. 5. The SA Contact Centre Industry – An overview
  6. 6. Ten Years Down the Line
  7. 7. Key Strategic Trends into 2010
  8. 8. Staffing & Manpower – “The Winds of Change”
  9. 9. The SABS Contact Centre and BPO Standards
  10. 10. Major Technology Trends
  11. 11. Outsourcing
  12. 12. Connectivity
  13. 13. Public Sector Service Delivery
  14. 14. Social Media – The Social Customer
  15. 15. Legislative Issues
  16. 16. The Energy Crisis – The ‘Green Stampede’</li></li></ul><li>Five Key Challenges<br />Into 2010<br />Increase<br />Customer<br />Satisfaction<br />Reduce Cost<br />Of Operations<br />Increase<br />Efficiencies<br />Increase<br />Revenue<br />Reduce<br />Risk<br />Doing a lot more …..<br />With a lot less …..<br />Without compromising quality <br />Fulfilling The Key Elements <br />of Most Organisations’ Strategic Plans<br />
  17. 17. The South African Contact Centre and BPO IndustrySome High-Level Stats<br />
  18. 18. How Many Agents in SA ?<br />150,000 to 175,000<br />
  19. 19. Regional Split of Contact Centres in South Africa<br />•<br />Bloemfontein<br />(Free State)<br />•<br />Johannesburg<br />(Gauteng)<br />•<br />Durban <br />(KwaZulu Natal)<br />Cape Town <br />(Western Cape)<br />•<br />Port Elizabeth <br />(Eastern Cape)<br />•<br />Sample Size = 313 <br />
  20. 20. Types of Contact Centres in South Africa<br />Sample Size = 313 <br />
  21. 21. Breakdown of Contact Centre Activity in South Africa<br />Sample Size = 312 <br />
  22. 22. Main Nature of Contact Centre Activity in South Africa<br />Sample Size = 308 <br />
  23. 23. 10 Year Comparison – Performance KPIs / Metrics<br />2008/9<br />1998<br />Performance Metric<br />65%<br />72%<br />% Calls Answered < 10 Secs<br />Ave. % Calls Abandoned <br />(Agent Queues)<br />12%<br />6%<br />81%<br />83%<br />1st Call Resolution Rate<br />39 secs<br />23 secs<br />Ave. Speed to Answer<br />Ave. Wait Time Until Call <br />Abandoned<br />45 secs<br />53 secs<br />% of Total Agent Capacity Utilized on Speaking to Customers<br />62%<br />57%<br />Ave. Time Taken to Respond to Customer Message (voicemail)<br />20 hrs<br />11 hrs<br />Source: Global Contact Centre Benchmarking Report 2008, Dimension Data<br />
  24. 24. The Global Quest to Increase Operational Efficiencies<br />2.1 What are the three most important current main commercial drivers of the contact centre ??<br />Source: Global Contact Centre Benchmarking Report 2008, Dimension Data<br />
  25. 25. Typical Contact Centre Costs<br />Source: Dimension Data Global Benchmark Report <br />
  26. 26. Key Strategic Trends<br /><ul><li>Cut Costs – Deliver More – Increase Quality
  27. 27. A time for Introspection
  28. 28. Self Analysis – Auditing – Benchmarking
  29. 29. Implementation of Operational Standards (e.g. SABS)
  30. 30. Changes in the Staffing / Personnel Environment
  31. 31. More emphasis on WFM/WFO
  32. 32. More focus on Compliance Issues & Liability Protection
  33. 33. Sarbanes-Oxley / King III
  34. 34. Payment Application Data Security Standard (PA-DSS and PCI )
  35. 35. Sector Growth
  36. 36. Debtor Management & Collections
  37. 37. Sales and Revenue Generation
  38. 38. Resurgence of ‘Professional TeleMarketing’
  39. 39. Technologies
  40. 40. Towards Self-Service
  41. 41. Quality Assurance – Outsource QA / WFM
  42. 42. Interaction Analytics
  43. 43. Home-working agents / remote agents
  44. 44. Unified Communications
  45. 45. Outsourcing & Hosted Solutions
  46. 46. Increase Bandwidth
  47. 47. Reduced Telco Costs?
  48. 48. Access to applications and functionality </li></ul>https://www.pcisecuritystandards.org<br />
  49. 49. Moving Ahead into 2010 ><br />OLD PARADIGM<br />NEW PARADIGM<br />Call center is a support function<br />Call center is a source of value creation<br />Customer service is a company and product differentiator<br />Customer service is a necessary evil<br />Reactive mindset<br />Proactive mindset<br />Play catch-up with customer needs and expectations<br />Stay ahead of customer needs and expectations<br />Goal is customer advocacy and product differentiation<br /> Goal is customer satisfaction<br />
  50. 50. Manpower & Staffing <br /><ul><li> Working with the “Y-Generation”
  51. 51. Unionisation in Contact Centres
  52. 52. Chief Learning Officer (CLO)
  53. 53. Delivering career-pathing and employee engagement
  54. 54. New drive for Learning & Development
  55. 55. E-Learning
  56. 56. Wellness & Working Environment (Green)
  57. 57. Effective Workforce Management</li></li></ul><li>17<br />Winds of change<br />Boomers Generation Generation<br />X Y<br />Generation statistics<br />Percent of population 41% 20% 14% <br />Ave. no. of hours spent at work per week 42.6 39.1 35.4 <br />Percent reporting that their job 'severely' or 'very severely' interferes with their family life 14% 29% 36% <br />Percent of 'leavers' (people considering leaving their jobs) who cite work/life imbalances as a key reason 12% 45% 48% <br />Percent who would like additional responsibility in the workplace 60% 39% 23% <br />Percent of men who would like more flexible working arrangements 23% 69% 75% <br />Percent of women who would like more flexible working arrangements 65% 83% 85% <br />Percent of men who predict that they will work on a part-time basis in the next 5 years 1% 12% 19% <br />Percent of women who predict that they will work on a part-time basis in the next 5 years 15% 19% 36% <br />Percent reporting that they would leave their jobs for greater control over their work schedules 1% 66% 85%<br />Percent reporting that they would leave their jobs for greater flexibility 2% 59% 92%<br />Percent reporting that they would leave their jobs for the ability to work fewer hours 1% 48% 64% <br />Percent reporting that they would leave their jobs for the ability to telecommute 0% 50% 75%<br />Percent who expect to leave their current employers in the next year 43% 52% 70%<br />Used with permission<br />© 2007-2008 Quest Flexible Staffing Solutions. All rights reserved.<br />
  58. 58. SA National Standards for Contact Centre and Back Office Operations<br />www.contactindustryhub.co.za<br />“Resources” Tab <br />www.bpesa.org.za<br />
  59. 59. Background to The Standards<br /><ul><li>Initiated by the Department of Trade & Industry, The Business Trust and BPeSA in 2005
  60. 60. 70 Member Project Development team
  61. 61. Consultants and Senior Operational Specialists
  62. 62. Developed over 2,500 ‘Best Practice’ Standards
  63. 63. Gazetted and Published in October 2008
  64. 64. Being assessed by ISO as the Base Standards for Global Use
  65. 65. Constantly Expanded and Updated</li></ul>Categories Covered by The Standards<br />Leadership and Customer Satisfaction Management Practices<br />Operational Management Practices<br />Human Resource Management Practices<br />Technical Resource Management Practices<br />Compliance soon to be mandatory for certain grants and incentives !<br />
  66. 66. Sector Growthin South Africa<br />Points for Discussion <br /><ul><li> Debtor Management & Collections
  67. 67. Sales and Revenue Generation
  68. 68. Outsourcing of QA / WFM
  69. 69. Resurgence of ‘Professional TeleMarketing’
  70. 70. Growth in Public Sector Contact Centres
  71. 71. Attracting International BPO
  72. 72. City of Joburg BPO Park </li></li></ul><li><ul><li> Motivated & Subsidised by City
  73. 73. Joburg CBD
  74. 74. 3,500 Seats
  75. 75. Phase One operational Q2/3 2011</li></li></ul><li>A Member of the Ascentys Group <br />SITE OVERVIEW<br />
  76. 76.
  77. 77. Key Technology Trends<br /><ul><li>Towards Self-Service
  78. 78. More demanding Customers
  79. 79. New ‘Tech-Savvy’ customers
  80. 80. More sophisticated technologies
  81. 81. Drive for cost reduction (human capital costs)
  82. 82. Automated Quality Assurance and Compliance
  83. 83. Interaction Analytics / Outsource QA/WFM
  84. 84. Security Issues & Liability Protection
  85. 85. The Advent of Interaction Analytics and Process Automation
  86. 86. Outsourcing & Hosted (On-Demand) Solutions
  87. 87. Increase Bandwidth
  88. 88. Reduced Costs ? / Easier Access
  89. 89. Remote (Home-based) Agents
  90. 90. ‘Green Technologies’</li></li></ul><li>Technology Drivers into2010<br />The key business drivers of cost reduction and revenue growth have given rise to a number of significant trends including : <br /><ul><li> Interaction Analytics
  91. 91. ‘Offshoring’ and outsourcing
  92. 92. Self service
  93. 93. Growth of the virtual contact centre</li></li></ul><li>Technology Drivers into 2010<br />“Another driver will be the desire by larger enterprises to insure business continuity and compliance with Sarbanes-Oxley. <br />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.” <br />COMPLIANCE<br />RISK MITIGATION<br />OUTSOURCING<br />& HOSTED TECHNOLOGIES <br />
  94. 94. The Contact Centre into 2010 ><br />Enterprises have cut technology spending<br />Reconsidering Options – ‘Sweat the assets’ <br />Cutting Costs & Customer Retention<br />Customer Service becomes a key differentiator<br />The Challenge of Efficiency versus Effectiveness<br />Drive Costs down, Efficiency up – without compromising Quality<br />Organisations need to understand customers’ reasons for calling<br />Monitor & analyse calls <br />Equip agents with proper tools<br />Analyse calls to find skills gaps<br />The Art & Science of Call Avoidance<br />Drive for Compliance, Liability Protection and Quality Assurance <br />The Virtual Contact Centre & Mobile Agents<br />Adoption of new staffing models and WFM/WFO<br />
  95. 95. Key Business DriversWhy Companies Outsource<br />
  96. 96. CONNECTIVITY<br />The Game is on !<br /><ul><li> Global Surplus capacity
  97. 97. Pressure on tariffs
  98. 98. More competition (Telkom, Neotel, IS, MTN, Vodacom etc)
  99. 99. Roll-out of the Telkom (and other VARS) wireless network/s
  100. 100. Satellite Quality and affordability
  101. 101. The impact of WACS
  102. 102. Hosted Services (In the Cloud / telco) </li></li></ul><li>Public Sector Service Delivery <br />Dramatically growing awareness of ‘Service Delivery’ <br /><ul><li> Service=votes !
  103. 103. Reduce costs – increase efficiencies
  104. 104. Track ‘accountability’ / Security / ‘Corruption Management’
  105. 105. Influence / Impact of Trade Unions
  106. 106. Consolidation (Shared Services)
  107. 107. Outsourcing non core services
  108. 108. Outsourcing of Government & Parastatal Services
  109. 109. SAA Contact Centre / SA Tourism
  110. 110. Public-Private-Partnerships
  111. 111. Government data pooling / in co-operation with private sector data pools
  112. 112. Monitor & Manage productivity
  113. 113. Fraud Detection / Risk Management </li></ul>PRIMARY INDUSTRY CHALLENGE <br />Educate government re benefits of Contact Centres and Outsourcing<br />
  114. 114. THE SOCIAL MEDIA<br />THE SOCIAL CUSTOMER<br />
  115. 115. THE LEGISLATION THAT MOST AFFECTS OUR INDUSTRY<br />The Access to Information Act<br />The Electronic Communications & Transactions Act<br />The National Credit Act<br />The Consumer Protection Act<br />The Protection of Personal Information Bill<br />This legislation WILL impact your business from 2010 onwards !<br />
  116. 116. THE PROTECTION OFPERSONAL INFORMATION BILL<br />The aim of the bill is:<br />To give effect to the constitutional right to privacy<br />To regulate the manner of processing personal information<br />To fall in line with international standards for trans-border data flow<br />Status: Now with the Parliamentary Portfolio Committee<br />
  117. 117. THE PPI BILLKey issues<br />The bill is based on the EU eight principles of data privacy (and could be in force within 18 months)<br />There are limitations on the right to process consumer data<br />You will have to notify consumers on your databases as to the use of the data and must remove their data on request<br />There are strict data security requirements <br />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)<br />You will need to register your databases with the Privacy Regulator, who will be able to enforce criminal sanctions<br />www.dmasa.org<br />
  118. 118. Global Energy Trends: <br /><ul><li>Consumer demand for energy-efficient goods and services
  119. 119. Energy management as a powerful cost-save driver
  120. 120. Sustainability reporting [Finance + Environment + Social]
  121. 121. Increasing personal and collective accountability for action
  122. 122. Procurement policies score and monitor vendor responsibility
  123. 123. Investment in sustainable energy sources
  124. 124. China invests ± USD 9 billion per month on clean energy development</li></ul>In SA to produce and consume 1kWh electricity requires:1.45 litres waterand emissionof 1kg of CO2<br />
  125. 125. SA status of supply:<br /><ul><li>www.poweralert.co.zaSample taken 16 March 2010 at 15h50
  126. 126. General trend for some months has been ORANGE / RED
  127. 127. The Eskom grid is under strain – all of SA needs to conserve.
  128. 128. Prediction: Load shedding is on its way – late 2010 / 2011</li></li></ul><li>
  129. 129. www.rodjones.co.za rod@rodjones.co.za<br />THANK YOU <br />- Questions - <br />www.c3africa.com<br />

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