Presentation BPO outsourcing from Netherlands to South Africa

• 1. NL contact center industry: stats, facts & learnings Ernst KruizeManager Marketing & CommunicationPhilipse Business School | MBA School For Customer Management

2. A few general stats

• 2.000 contact centres (and rising)

• About 75.000 seats

• Estimated 160.000 employees

• Around 100 billion turnover value (Rand)

• 77% captive contact centres

• 9 out of 10 calls are inbound

• Mainly service focus

• Growing emphasis on sales

• Third wave

• Market in maturity

3. HR perspective: more stats

• 160.000 employees

• 50% parttime employed

• on average 20-24 hours

• 75% woman

• mainly between 25-49 in age

• 75% fixed contract with call centre

• 60% MBO level

• Attrition: 14% captive, 25% outsourced call centres

• Salaries: 140 R per hour captive, 100 R per hour outsourced

• Melting pot: 4 different generations on the floor

4. Proof of maturity

• Collective labour agreement (wgcc.nl)

• Annual Award event with over 1000 visitors (ncca.nl) | (tcd.nl)

• 11 thAnniversary Joint industry benchmark research (nccbp.nl)

• Different magazines and online communities

• Dutch Quality Standard (ito.nl)

• Formal education from agent to manager

• Associations

5. Associations: fragmentation

• Inhouse contact centers: VCN

• Top ten largest inhouse contact centers: TCCM

• Inhouse contact center managers: TCCM

• Outsourced contact centers: WGCC

• Direct marketing: DDMA

• Homeshopping: Thuiswinkel.org

• CRM: CRM Association

• Investment agencies

• Regional platforms

• Online forums (mainly LinkedIN)

6. Industry interests: covered, but protected?

• Growing consumer frustration

• Laws replacing selfregulation

• Cost center focus

• Low perception of cc jobs

• Outsourcing threat

7. The ultimate challenge 8. Need for solutions!

• Focus on selfservice

• Employment of the elderly

• Homeshoring

• Managed sourcing concepts

• Offshore outsourcing

9. Offshore outsourcing

• Presence of largest global BPO parties present

• EMEA establishment ofglobal brands

• (growing) Offshore outsourcing (voice)

• • Surinam & Antiles

• • Turkey and Maroc

10. Offshore to South Africa (-)

• Perception(!): first attempt failed

• Misperception of Dutch as easy to learn

• Cultural differences

• Scaling issues:

• - country size

• - small number of large companies

11. Offshore to South Africa (+)

• Lower operational costs

• Holistic view on customer contact

• Infrastructure/technique

• Enormous drive to succeed

• Cooperation instead of competition

• One stop shopping concept

• PR (Brochure Wij spreken uw taal!)

• Active representation in NL market

• Partnership with Dutch BPOs?

• Entrance via non-voice?

12. Thanks for your time!

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