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by Martha Young
Thirteen
turned out to be Procter & Gamble’s lucky number.
Several years ago, the consumer products giant ran a pilot
to test the viability of running its call centers remotely.
P&G started down the path of business process outsourcing
of its consumer relations group via the telecommuter method.
Thirteen agents within the consumer relations group were
set up to work from home offices.
P&G made arrangements with its local telecommunications
and cable companies to establish guaranteed high-speed access
for the telecommuters. With robust call center technology,
employees worked as if they were at the corporate facilities.
The high-speed access allowed the remote workers to tap into
P&G’s consumer knowledgebase to provide the answers
consumers were seeking when calling into P&G.
The results far and away exceed its expectations in a number
of defined metrics, including employee satisfaction, employee
retention, employee productivity, real estate cost reductions
and redefining hiring metrics.
Specifically, the pilot test resulted in:
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An 8% attrition rate in an industry that typically
sees 20-25% annually |
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20% increase in telecommuters’ productivity,
measured by the number of calls completed |
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$1 million annual reduction in real estate costs by
eliminating one floor at the P&G facilities |
Now, what started off as a test pilot
with large successes has recently turned into a complete
outsourcing arrangement for Procter and Gamble’s Consumer
Relations Group.
P&G recently signed a five-year contract with Tampa-based
Sykes Enterprises for an estimated value of $70 million.
P&G’s contract with Sykes is expected to begin
in November 2003.
From the small steps and significant savings recognized in
the Consumer Relations Call Center pilot program, P&G
learned several valuable lessons on the benefits of business
process outsourcing. As a result, its relationship with Sykes
will undoubtedly introduce other areas of significant value.
For example:
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Local language support. Sykes’ call centers encompass
offshore, near shore, and onshore facilities. This arrangement
benefits P&G by providing 24x7 support, local language
support and local custom understanding. |
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Head count reduction. P&G is able to reduce head
count in its Consumer Relations Group while concurrently
expanding support services through Sykes, all without
compromising consumer support. |
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Increased professionalism. Offshore call center personnel
are very different from U.S.-based call centers. Overseas,
these positions are viewed as a life long career; consequently,
the people that fill these positions take their responsibilities
much more seriously in an effort to further their career
opportunities. With increased professionalism comes increased
consumer satisfaction – it is practically a given. |
Leveraging other skills within Sykes,
the five-year contract calls for additional services, including
the development and hosting of a global customer relationship
management (CRM) solution, as well as global fulfillment
services such as coupons and information mailings.
There will always be a need for companies to be able to monitor
and measure the users of its products. Therefore, P&G
is not turning over its entire Consumer Relations department
to Sykes. P&G still expects to field approximately 30
percent of its customer service inquiries.
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