Outsourcing and Customer Relationship Management Term Paper by Nicky

Evaluates the impact of the business process of outsourcing on customer relationship management (CRM) in the telecommunications industry.
# 150304 | 4,235 words | 22 sources | APA | 2012 | US
Published on Jan 30, 2012 in Business (Industries) , Business (Management) , Business (Consumer Behavior)

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This paper explains that, for telecommunications providers and manufacturers, decisions about outsourcing customer relationship management (CRM) are most concerning because the profitability challenges of the last seven years has underscored the importance of retaining customers by maintaining their trust. Next, the author looks at the trade-offs presented by outsourcing CRM especially the problems created by cultural factors. The paper concludes that, since the entire revenue mode of telecom providers is based on recurring revenue and the continual payment for services, the outsourcing of core areas of their CRM strategies, including customer care services, nearly always is defined through a series of jointly-agreed benchmarks. Colored tables are included in the paper.

Table of Contents:
Defining CRM in the Global Telecommunications industry
Trade-offs of Business Process Outsourcing CRM in the Telecom Industry
Business Process Outsourcing and CRM: A Troubled Marriage
Cultural Factors That Inhibit the Success of Business Process Outsourcing for CRM

From the Paper:

"This is the primary reason telecom service providers and manufacturers are aggressively pursuing business process outsourcing partnerships throughout Africa, India, China, and many other nations. These manually-based tasks, many of them lacking any significant complexity, can be easily transferred to outsourcing partners with a minimal amount of training involved. The rapid growth of call centers in India is a direct result of this cost reduction approach to business process outsourcing focusing first on the manual tasks that require little complexity to complete. The issue of outsourcing these manually-based, relatively high cost tasks however is that there is no upside in the long-term. Telecom providers and manufacturers are finding that once cost reduction initial goals have been achieved there is only incremental room for improvement over time. In other words, the scalability of savings from outsourcing these manually-based tasks has only so much room for improvement once the initial cost reduction savings are attained. As a result, metrics of performance including the continual focus on how to gain even the slightest gains in costing are made the greatest priority for telecom providers and manufacturers. Ironically telecom providers and manufacturers find that the business process outsourcing strategies for CRM initially developed to say 60% or more of the costs of these manual processes actually cost even more due to the need to devote their best managers and operations experts to managing their performance over time. It takes a significant amount of time to manage even a small business process outsourcing partnership well."

Sample of Sources Used:

  • Rakesh Agarwal, and Nonika Bajaj. 2008. Managing outsourcing process: applying six sigma. Business Process Management Journal 14, no. 6, (November 1): 829-837.
  • Bernoff, J., and C. Li. 2008. Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review 49, no. 3, (April 1): 36-42.
  • Cheek, R., K. Tran, and A. Lakhotia. 2003. Outsourcing CRM in India: Low Cost, Excellent Quality, High Customer Satisfaction - And What Goes Wrong Too. Allied Academies International Conference. Academy of Organizational Culture, Communications and Conflict. Proceedings 8, no. 2, (July 1):
  • Sergios Dimitriadis, and Eric Stevens. 2008. Integrated customer relationship management for service activities :An internal/external gap model. Managing Service Quality 18, no. 5, (September 1): 496-511.
  • Foss, B., M. Stone, and Y. Ekinci. 2008. What makes for CRM system success -- Or failure? Journal of Database Marketing & Customer Strategy Management 15, no. 2, (March 1): 68-78.

Cite this Term Paper:

APA Format

Outsourcing and Customer Relationship Management (2012, January 30) Retrieved February 05, 2023, from https://www.academon.com/term-paper/outsourcing-and-customer-relationship-management-150304/

MLA Format

"Outsourcing and Customer Relationship Management" 30 January 2012. Web. 05 February. 2023. <https://www.academon.com/term-paper/outsourcing-and-customer-relationship-management-150304/>