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Case Studies / Contact Center Management

Business Process Initiative Identifies $10M in Cost Savings through Improved Metrics and Vendor Management

Telecom Industry

Scope

  • As a cost management tactic, a Fortune 100 enterprise contracted with multiple outsourced vendors to operate their technical support contact centers.
  • These centers were operating at higher-than-anticipated costs in spite of a balanced focus on average handle time and customer satisfaction, as well as lower agent costs per hour compared to internal rates.

Results

  • Northridge used its proven methodology to conduct a center assessment, including a review of vendor contracts, an on-site evaluation of tools and processes, and an analysis of performance metric trends. The assessment uncovered that:
    • Focus on AHT drove agents to prematurely disengage with customers, increasing repeat calls.
    • Outsourced vendors were compensated based on calls handled; contracts lacked metrics for repeat calls and optimal agent scheduling.
  • A 28% improvement in first call resolution and centralized schedule management generated $10M in annual cost savings.

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