New model may slash local revenues

The recent data security breach of a leading financial services firm in the UK has highlighted some important issues for countries that operate in the outsource call centre market. The UK-based company outsourced its call centre - along with its clients' valuable data like credit card numbers - to a company in India, only to find that the Indian call centre was selling the data.

The news sparked fresh debate about the importance of adherence to security standards for countries - like SA - with a burgeoning outsource call centre industry. It also highlighted a growing trend that these countries need to watch if they are to maximise revenues from the industry.

While companies in the UK, Europe and US are keen to benefit from cheaper labour costs in countries like SA, many are hesitant to part with their data and technology infrastructure. This means some international companies are opting for a 'semi-outsourced' model where they retain the main technology system in their home country, and outsource only the call centre agent aspect to a company in a country with cheaper labour costs.

This is not good news for the South African call centre market. It means local technology vendors may miss out on their part of the pay packet in terms of income from the sale of the system and revenue for ongoing IT support and customisation on the system. Essentially, this model means the local industry will benefit only from the employment of its agents, and the sale of some hardware equipment such as headsets.

While companies in the UK, Europe and US are keen to benefit from cheaper labour costs in countries like SA, many are hesitant to part with their data and technology infrastructure.

Dave Paulding, regional sales manager, UK and Africa for Interactive Intelligence

Security concerns are a major driver of the semi-outsourced model. Companies find it hard enough relinquishing sensitive information to businesses in their home country where it can still be monitored, never mind sending it to another continent. International companies also feel more assured about their technology system's performance if it is in their backyard rather than across the oceans.

The question of cross-continent system compatibility is as significant. Generally, a UK-based business wants the same system it has in the UK implemented in its outsourced call centre.

Many vendors in SA don't sell the systems these companies operate back home. Increasingly, international companies are looking to service providers who can deliver solutions in both their home country and outsource location.

For South African companies to maximise the opportunities in the growing outsource call centre industry, it is critical they adhere to industry standards in terms of their management of the technology and data integrity and security.

The call centres also need to implement operational best practice through correct training and incentives for the call centre agents to ensure they are working to the same standards as their international counterparts.

These measures are already in place to some degree; however, a renewed focus is paramount if SA is to remain competitive in this space.