Outsourcing customer satisfaction

We may be a multi-cultural nation but the frustration felt when hearing a foreign accent on the other end of the phone upon contacting your insurance/phone/ utilities company is unanimous.

Yet a growing number of Australian companies, NRMA, RACV, SGIO, Lumley Insurance, Swann Insurance, WFI and CGU included, are moving their contact centres offshore.

“I have four policies with NRMA and have always thought that a distinguishing feature of the company was the fact that they maintained onshore call centres. If this changes, so will I,” David Macalpine said.

“I’m signing this because as a small shareholder, I would rather earn less money and keep Australians in jobs as well as ensuring greater security here than going off-shore. An Australian company, ensuring Australians must be kept on Australian soil!” said Denise Fulton.

It is clear Australians prefer to speak to Australians, but the hasty migration to countries like the Philippines continues. Why are companies willing to sacrifice their customer’s satisfaction and for what cause?

The biggest driving factor is cost. Salaries account for approximately 80% of the running costs for a contact centre. Cheaper labour is going to have a profound overall impact on your operating costs.

According to Contact Centre Central, “the minimum award salary for a full time contact centre agent (working 38 hours) in Australia with no penalty rates is $41,332 compared to the average $5,751 a customer service agent working up to 47 hours including penalty rates in the Philippines would receive.  Just based on a 30 seat contact centre that’s an annual saving of over $1 Million for every year of operations.”

Is cutting-costs a good enough reason to move off-shore? Tell me what you think in the comments.

Written by: Claire Dowler

Claire Dowler is a Conference Producer with Akolade. She recently graduated with a double degree: a Bachelor of Journalism and a Bachelor of Media and Communications Studies majoring in International Communication. Claire minored in sarcasm and puns.

A ballroom-dancer who collects salt and pepper shakers and volunteers for animal rescue, you might say Claire has eclectic interests.