subject: Cutting Profit in Call Centers [print this page] Profit is the driving force that propels business. That has always been the case. In matters of the BPO sector, the bottom line is what matters. But this has not always been the case. Call center services stuck to the services' aspects of their business and stuck to clients and their projects. It was not till recently that these call centers realized that they need to take on a life of their own. They need to be organic in their growth pattern and while doing telemarketing services, they have to build up profits of their own. This is important because of various reasons. Let's examine them one at a time.
First, call centers need profits to expand their range of call center services. There is a growing need for newer services and there is a market for them. Clients are always asking for new BPO processes to be incorporated in their projects. If they had hired the call center for lead generation, they may request for online sales lead generation as well. That is a different ball game altogether. You have to know the whims and patterns of search engines like Google and Yahoo. You have to study algorithms and how things work in the search engine optimization sector. Without the technical knowledge, you cannot embark on such projects.
The catch is that to start up something new in the BPO unit, you will need capital. If you are working on a strict financial leash, you cannot cut out some money to make it work. Your clients are paying you for call center services that cover your investment in the project, like manpower and technology. If you are not careful with the kind of telemarketing services you are doing, there's very little chance of you making a profit to add to your kitty. When full-fledged operations begin, you will have to optimize your processes and streamline the use of resources. Any waste will eat into your profit. It's in the interest of the call center that the agents exploit resources to the hilt.
The enemy that pulls back profits from call centers is the competition. New players have entered the arena and they have managed to bring down the price tags on call center services. However, the rising inflation leaves very little option for the BPO unit to slash prices. They have no choice in the matter, though. Unless they are cutting down their rates, they are not liable to bag telemarketing projects. Clients are particular about what kind of money they are paying. They will not hire an overpriced unit if they have cheaper options on the table. So there has to be a ceiling on how much you can charge for telemarketing services. This has to combat with the inflation and also make profit for the unit. You cannot really hire very inexpensive manpower because then the quality of work will suffer. That is another fall-out of the competition. Once you stumble, you are more likely to be swept aside before you know it.
