In: Operations Management
Case Study: A major client asks one of its vendors to expand into India to lower the call center costs that they were incurring in Austin Texas. Austin was chosen because of the nature of the call – technology. India was chosen because of the labor pool with technology experience.
What are the issues the call center supplier has to deal with in considering whether to make this move and how to make it?
Case Study Continued: The same major client changes its mind after 6 months. This client was the 2nd largest company in the world at the time and they were a growing part of the vender’s business.
Because its initial mantra was flexibility (lease, equipment, human resources etc.), it was able to get out of its commitment, was paid to so by the client because they were so impressed with how low the costs were AND able to go to the next market in the same way.
•Adopt a Clear Product Strategy
•Test product in the target market
• Make adjustments as needed
A) The issues of the call center supplier has to deal with are as under:
1). There has been experienced a lot of changes due to increase in social media popularity and online services. It has been observed that the issue lies on the pricing policy, product manufactured and target audience. 2) The greatest problem lies in the low budget which does not allow them to serve with effective service. If the resources are less then there will be a loss of product demanded. This problem can be reduced by taking the feedback from the customers to improve & create new ways to get the information about the people. 3) Hiring is a cumbersome task because it requires professional training for customer and client services. Training a novice is a time consuming process which is less profitable for the company. 4) These days it has been found that there are variety of vendors and numerous products. There are different software systems which performs a specific task due to number of applications the system becomes like a maze and is complicated to handle. The solution to this problem is to check that the new system is integrated with the wide range of vendors. If the new system is merged with the old system then it will be easier to use the system, will save the time and will also result in improving the customer service. 5) When the business has its own priorities then it creates conflicts as to which priority is to be fulfilled first. The answer to this question lies in the fact that we should list our priority in order of importance. 6) Another issue which arises is the absence of staff in the service. The solution to this problem will be to implement and communicate the consequences of the robust absence. One should ensure to make staff aware that repeated absence will lead to verbal or written warning action. 7) Another major issue is leaving of advisors because of high staff turnover. It involves a lot of money in appointing a new staff and impart training to them. The solution to this problem is to assign them work which they can easily do without the involvement of stress, giving them a value in the business with good incentive. 8) The major issue to increase performance level is the lack of skill. This problem can be met by increasing the quantity as well as qualitative performance.
B) Clear Product Strategy : A clear product strategy means a strategy which has a high level plan and a system of achieving goals and vision that works together in a team to bring favourable outcomes for both the business and the customers. It has several purposes like it provides clarity for the company, priority for the product and improving the decision making concept of the team. The clear product strategies to be adopted are as under:-
1. Flexibility in the product:- This means a long term mission for the product to be planned which are return in brief.
2. These product should have a target to be achieved. This will lead to the fulfillment of the product on priortized basis.
3. In order to fulfill the above targets, initiatives should be taken to improve the satisfaction of the customer, new sales service etc.
C. Test product in the target market:- We can test product in the market through the following ways:-
1. To build a priliminary version of the product and show it to the people so that some honest and authentic feedback are recieved which will help the business plan to mature.
2.To make a minimum feasable product which we can actually sell in the market. We can get the feedback from the customer regarding the product manufactured.
3. When the feedback is taken after the priliminary testing of the product, we can come to know through critics the real problem of our target product.
4. We can make adjustments and improvements with the feedback of our critics in our product.
5. Promoting the product through social platforms.
6. Creating and implementing the market plan.
D. Making adjustments:- The goals of the business success is focussed on the flow of products. These adjustments are made so that there is a high turnover, personal problems are resolved and employees issues are solved.