Many companies outsource contact center operations primarily to reduce costs. They spend significant time negotiating low rates with their BPO partners but often overlook potential cost savings within their own vendor management organization. This oversight can lead to overstaffing and inefficiencies.
Assessing Vendor Management Needs
Determining the correct number of vendor managers isn’t straightforward. There isn’t a universal ratio that fits all scenarios. Instead, it’s essential to consider the specifics of each program or site and the number of communication channels involved.
For example, managing a single program through one channel at one site with 2,000 agents is simpler than overseeing five programs through two channels across four sites and three partners with only 200 agents. The need to service multiple languages further complicates the decision.
Defining Roles and Responsibilities
To optimize vendor management, start by clearly defining the roles and responsibilities for managing each program. This step often involves shadowing current vendor managers to understand their tasks and how long each activity takes.
Conducting a Time Audit
A time audit will help you identify many activities that vendor managers currently perform but shouldn’t, such as reviewing agent-level performance. By understanding these tasks, you can streamline your processes and determine the optimal size for your vendor management team.
Impact of Service Complexity
The complexity of outsourced services significantly affects your vendor management needs. The number of programs, channels, and languages all play a role. Observing how vendor managers spend their time can reveal unnecessary activities and help right-size your team to match the required work.
Regularly Review and Adjust
Vendor management needs can change over time. Review your team’s activities regularly and adjust the size and roles to ensure continued efficiency.
Conclusion
Optimizing vendor management in contact center outsourcing enables cost efficiency and operational effectiveness. By defining clear roles, conducting a thorough task analysis, eliminating unnecessary activities, and regularly reviewing your team’s performance, you can ensure that your vendor management organization is well-sized and focused on what matters most.
Taking these steps will reduce costs and improve the overall performance of your outsourced services, leading to happier customers and a stronger bottom line. As you refine your vendor management practices, you will find that the benefits extend beyond cost savings, contributing to a more agile and responsive organization.
Remember, the goal is to create a vendor management organization that is lean, efficient, and capable of adapting to your business’s changing needs. Focusing on these areas can significantly improve cost and service quality.
Kathleen McNair, CEO of North America at COPC Inc., oversees customer experience consulting, certification, and training practices. Formerly the President and COO at COPC and SVP at RealPage, Kathleen has extensive experience in transforming operations and customer journeys across North America.
She excels in scaling operations and integrating digital customer experience solutions. Kathleen holds a BA in Mathematics Education from the University of Central Florida and an MBA from Rollins College. She is also an active volunteer puppy raiser for Canine Companions for Independence.