Perspective on Outsourcing
October 25, 2004 - by
Robert E. Stevens, GENESIS II
Second Beginning) E-Mail: email@example.com
I have written a number of times on the
outsourcing, the latest being April 13, 2004. I just received an email
friend living in Ireland, Gerry McGovern, addressing the same topic.
are excerpts from Gerry's article.
wash their hands of the customer after they've sold them the product.
supposed to outsource and offshore the non-essential functions, so that
focus on what really matters, and on what you do really well. If this
case, then support must be one of the most minor functions within the
organization. The customer gets their questions answered by a third
contractor who has a couple of weeks training and reads from a script.
digging a deep
grave for themselves. They think that they can basically wash their
the customer after they have sold them the product. That may boost
profits but will create an increasingly disloyal customer base.
more a factor of habit than of love. Most customers are staying with
not because they care about them, but because it's too much hassle to
and because they feel the competition is probably just as bad.
increasingly the real work of
branding will occur at the support level. The real test of a
what happens when something goes wrong, that's where brands of the
get built and destroyed. Forget the TV ads that tell us imaginative
rubber hits the road at support.
becoming more and more
the same, made from the same parts, doing the same things. What will
organizations of the future a competitive advantage is the set of
they have established. Organizations that oursource their support are
outsourcing their customer relationships and oursourcing their brands.
read more of Gerry's perspectives at
In Accounting we focus on the gain and
dollars. In the overall scheme of business we need to focus on the gain
loss within attributes. Someone once told me it takes ten times as much
to get a new customer as it does to keep an existing one. I wonder how
outsourcing fits in the model of customer retention?
is usually conducted with a cost
in mind. However, there is no such thing as a "free lunch" or as
Newton would say, for every action there is a reaction.
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