Outsourcing contact centers: internal branding challenges and consequences

Abstract

Purpose

The purpose of this paper is to develop a deeper understanding of the philosophy adopted by organizations in making the decision to outsource contact centers or not.

Design/methodology/approach

A phenomenological study was used to develop an understanding of industry participants’ experience of the outsourcing of contact centers in South Africa. Ten in-depth interviews were conducted. Content analysis identified key thoughts and common themes. This was used to develop a model for outsourcing.

Findings

Evidence was found to support three propositions developed from the literature regarding the reasons for and the unintended consequences of outsourcing. A model was developed to illustrate how costs can be reduced by outsourcing under different conditions of “headcount constraints” and “failure costs” of customer relationship management.

Research limitations/implications

The study was conducted in a single emerging market. Future research should confirm the validity of this model in other markets.

Practical implications

Outsourcing contact centers can lead to a loss of control over CRM and internal brand management. This can be avoided by paying considerable attention to the governance of the contract. There are two key messages for managers: to resist the short-term attraction of potential cost savings and marketing must play an active role in the outsourcing decision.

Originality/value

New knowledge is provided about the philosophy adopted by organizations when outsourcing contact centers. A model is presented to guide managers in the outsourcing decision-making process.

Citation

Du Preez, R. and Bendixen, M. (2019), "Outsourcing contact centers: internal branding challenges and consequences", Journal of Business & Industrial Marketing, Vol. 34 No. 5, pp. 921-930. https://doi.org/10.1108/JBIM-10-2018-0311