top of page

Case Study: Assessing the Feasibility of Outsourcing for a Global Telecommunications Company

testimonials.png

Head of Procurement, Global Consumer Brand, UK

Industry: Telecommunication
Function: Indirect Procurement
Goal: To Determine the Feasibility of Outsourcing and Achieve Operational Readiness

​​​Executive Summary

A regional subsidiary of a large international telecommunications company faced rapid growth and operational challenges in its internal contact center. With increasing competition, rising costs, and customer dissatisfaction, the company considered outsourcing its contact centre operations but lacked experience in this area. Envisago was engaged to assess the feasibility of outsourcing and help the company achieve operational readiness. Through a comprehensive operational assessment, market testing, and implementation support, Envisago provided strategic recommendations that led to significant improvements in operational efficiency and informed the company's decision to retain the operation in-house.

​

Background

Client Profile:

Type: Regional subsidiary of a large international telecommunications company.
Services: Provided marketing support, customer service, and technical support to a premium customer base across a dispersed geographical area.
Contact Centre Operations:

- Operated 24/7/365 to handle frontline emergency services calls.

- Managed a wide range of inbound and outbound telephone, email, and web-based front and back-      office transactions.
- Supported fixed line, mobile, broadband, and TV solutions.
- Activities included customer acquisition, service provisioning, fault management, complaints handling, customer satisfaction surveys, retention programs, and back-office support for retail outlets.

​

​​

Challenges

Conflicting Business Demands

Rapid Growth:

- New product and service launches led to climbing service demand.

Increased Competition:

- New market entrants pressured the business to maintain customer loyalty and retention.

Operational Issues:

- Internal structural and performance challenges.
- Rising staff turnover.
- Increasing customer dissatisfaction with the contact centre.

Cost Reduction Mandate:

- Tasked with reducing the cost base prior to an enterprise restructuring and divestment program.
- Lack of Outsourcing Experience:
- The Board considered outsourcing the contact centre but had limited knowledge and experience in this area.

​

​

Solution Implemented by Envisago

Phase 1: Informing the Business Case

Assessment of Feasibility:

Recommendation: Envisago recommended developing a business case to assess the benefits and risks of outsourcing.
Objective: Ensure the business made an informed decision, particularly given concerns about potential risks during a critical development stage.

Detailed Operational Assessment:

Interviews and Observations:

- Interviewed managers and agents.
- Observed work in progress.

Process Review:

- Reviewed core management processes such as training, workforce management, and quality monitoring.

Data Analysis:

- Reviewed and analysed performance data and reports.

Outcome:

- Gained detailed knowledge of operational requirements.
- Identified performance management gaps and opportunities.

Market Testing:

Vendor Qualification:

- Conducted high-level market testing.
- Qualified vendors with appropriate experience and capabilities.

Pricing Insights:

-Secured indicative pricing for services similar to those required by the client.
 

Phase 2: Confirming the Priorities

Risk Assessment:

Findings:

- Risks of outsourcing in the current state were very high.
- Core management processes were poorly defined.
- Critical knowledge was held by long-serving agents and managers.
- Limited historical performance data.
- The centre was unable to handle current demand effectively.

Conclusion:

-Outsourcing would likely incur additional future costs and negatively impact customer experience.
-The client would be outsourcing a problem rather than a streamlined operation.

Strategic Recommendation:

Delay Outsourcing:

Advised delaying the decision to outsource.

Focus on Internal Improvement:

Recommended closing gaps in the current operational framework.

Client Acceptance:

The client accepted the advice and embarked on an internal operational improvement program.


Phase 3: Achieving Operational Readiness

Implementation Support:

Mentorship and Support:

- Envisago was invited to support and mentor the management team.

Improvement Program:

- Conducted over a 12-month period.

- Combined on-site meetings and remote support conference calls.
- Reviewed plans, provided feedback, assessed results, and advised on corrective actions.

Areas of Focus:

- Addressed gaps identified in the operational assessment.
- Improved core management processes and performance management frameworks.

Results:

Enhanced Satisfaction Scores:

- Client (marketing) satisfaction and customer satisfaction scores improved.

Stabilised Costs:

- Running costs were stabilised.

Increased Efficiency:

-The centre handled increasing demand without adding staff.

Operational Readiness Achieved:

-The center became fit for purpose and operationally ready.
 

Phase 4: Re-evaluating Outsourcing

Procurement Process Management:

Invitation to Proceed:

- The client, still interested in outsourcing, invited Envisago to manage the end-to-end procurement process.

Process Execution:

- Conducted with the shortlist of vendors previously qualified.

Final Decision:

Internal Developments:

- Internal operational improvements offset the impacts of migrating the operation.

Retention of In-House Operations:

- The decision was made to retain the operation in-house.

Strategic Repositioning:

- The contact center was well-placed for repositioning within a new Network Operations Centre (NOC) strategy.

Ongoing Efficiency:

- Continues to function efficiently for the business and effectively for its customers.

​

​​

Results and Impact

Informed Decision-Making:

- The client made a well-informed decision regarding outsourcing based on comprehensive assessments.

Operational Improvements:

- Enhanced core management processes and performance frameworks.

Cost Management:

- Stabilised running costs while handling increased demand without additional staffing.

Customer Satisfaction:

- Improved client (marketing) and customer satisfaction scores.

Strategic Alignment:

- Positioned the contact centre within a new strategic framework (NOC strategy).

​​

​

Conclusion

By partnering with Envisago, the telecommunications company effectively assessed the feasibility of outsourcing and enhanced its internal operations to achieve operational readiness. Envisago's comprehensive assessment, strategic recommendations, and implementation support enabled the client to improve performance, stabilise costs, and make informed strategic decisions. Ultimately, the client chose to retain the contact centre in-house, integrating it into a new strategic initiative that continues to deliver efficient and effective services.​
 

dark4.png
Envisago
Empower Transformation
for the Future of Work
CX . Operations . AI Integration

Ready to transform your organisation and achieve lasting impact?

Contact us today to discover how Envisago can empower your organisation to navigate change confidently and prepare for the future.

​​

Schedule your free consultation today!

 

bottom of page