Contact center outsourcing has transformed over the years from being a cost optimization play focused on non-core contact center processes, to encompassing the entire contact center process value chain. The dynamic nature of the industry has had an impact on the buyer-provider relationship as well. In the past, buyers focused on multiple service provider relationships for risk mitigation and cost optimization purposes. With the focus moving towards business outcomes, buyers are now investing more time and effort on individual relationships. As a result, their focus is on fewer, but more meaningful BPO partnerships that also succeed in capturing better business value. This also means that not all contracts are successfully renewed, which has a direct implication on both service providers (loss of revenue) and buyers (transition costs). Therefore, it is imperative for both parties to work together proactively on nurturing their relationship in order to avoid any value leakage.
The goal of this viewpoint is to study some examples of value-driven relationships and to discuss:
- Key drivers of the trend towards closer and more complex buyer-service provider relationships in the BPO space
- Factors differentiating engaged / more-valued relationships from the traditional client-supplier relationships
- Benefits achieved through a more engaged CCO model
- Action that service providers and buyers should take to foster an engaged relationship