Should you opt for a captive center or outsource to a BPO call center?

OABPO Blog Team Published on October 17, 2013
confused-female-call-center-agent

Creating a captive center and outsourcing to a business process outsourcing (BPO) call center both offer cost reduction. But which one is a better choice? Generally, captive outsourcing has an advantage in terms of security and authority, while third-party outsourcing offers greater value in price and specialized industry knowledge.

Captive vs third-party outsourcing

Unlike today’s typical third-party outsourcing model, captive outsourcing is when a company moves its operations to a wholly owned subsidiary, instead of delegating it to a third party service provider. The subsidiary is commonly based in a low-cost location, perhaps in another region or country such as India or the Philippines.
Understandably, captive outsourcing is preferred by companies that would like to retain full control of operations. Since the subsidiary is still a part of the main company, the company can control how it’s integrated and how products are made and delivered.

Moreover, there are smaller security risks particularly when it comes to access to information and other resources since the company doesn’t have to open up their database to an external provider.

On the other hand, captive outsourcing has its own drawbacks. First, it’s more expensive than outsourcing to a BPO call center. The company has to fully invest in the offshore operation’s infrastructure (eg., land, buildings, equipment, etc) and maintenance cost. In IT services, for instance, a company can save 5%-15% more if they outsource to an offshore provider rather than opt for the alternative.
Lastly, the company may miss out on the skills and knowledge of a third-party specialist working with multiple clients.

Which is the right model for your business?

Each service delivery model has its own merits. When deciding which one best suits a company, one needs to assess various factors, such as the availability of skilled workers, business control, and continuous improvement capability, among others. Generally speaking, the best model is one that fits a company’s short- and long-term plans.

In some cases, the optimal solution does not lie in either of the two, but a “hybrid,” or combination of both models.

Join us on facebook
Open Access BPO 14 hours ago
Exceptional #CustomerExperience is key to building brand loyalty and driving success.
Adding value takes it to the next level.

But what does that even mean? And what can you do to make it possible?

Find out now: https://buff.ly/4cVLFyp

----------
Outsource now to give your customer the best #CX they deserve:
https://buff.ly/4d46mIe

#WeSpeakYourLanguage
#CustomerSupport #CustomerService
Open Access BPO 16 hours ago
𝐀𝐫𝐞 𝐡𝐮𝐦𝐚𝐧 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐦𝐨𝐝𝐞𝐫𝐚𝐭𝐨𝐫𝐬 𝐬𝐭𝐢𝐥𝐥 𝐧𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐢𝐝𝐬𝐭 𝐨𝐟 𝐚𝐥𝐠𝐨𝐫𝐢𝐭𝐡𝐦-𝐩𝐨𝐰𝐞𝐫𝐞𝐝 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 #𝐂𝐨𝐧𝐭𝐞𝐧𝐭𝐌𝐨𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐭𝐨𝐨𝐥𝐬.

It's humans vs algorithm in this blog post! Read all about it now: https://buff.ly/3Q733q8

----------
Outsource your content moderation and other business or knowledge process needs: https://buff.ly/3xHdhXO

#WeSpeakYourLanguage
Open Access BPO 2 days ago
#CallCenters need to build a consistent and memorable #CustomerExperience covering all channels, both digital and non-digital.

You need a high-performing #multichannel team that can successfully implement your #CustomerService strategy.

Here's how: https://buff.ly/43WMwe9

----------
Let us create the multichannel program and team for your brand: https://buff.ly/442IjFI

#WeSpeakYourLanguage
Open Access BPO 3 days ago
Logistics, technical issues, and human error can impact #CustomerExperience.

𝗧𝗶𝗺𝗲 𝘁𝗼 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝘀𝘂𝗰𝗵 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆 𝘂𝘀𝗶𝗻𝗴 𝘁𝗵𝗲𝘀𝗲 𝟰 𝗯𝗮𝘀𝗶𝗰 𝘀𝘁𝗲𝗽𝘀.

----------
Make a difference in your customers' lives.
We'll take the lead: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CX #CustomerSupport #CustomerRetention
Open Access BPO 3 days ago
Even if you've set your brand to constantly delight your customers, there are times when you have to say no to their requests.

Master the art of saying "no" with compassion.!

Here are 5 tips for letting down your customers gently without ruining their entire #BrandExperience: https://www.openaccessbpo.com/blog/customer-service-tip-5-tactics-saying-no-compassion/

----------
Choose an #outsourcing company that values #CustomerService and brand retention: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerSupport #CallCenterTips
#CustomerSatisfaction #CustomerExperience
Open Access BPO 3 days ago
Open Access BPO's CEO Benjamin Davidowitz spearheaded the recent Easter community initiative in Poblacion, Makati City: https://www.openaccessbpo.com/blog/open-access-bpo-ceo-leads-easter-community-initiative/

This annual tradition aims to provide nutritious meals to those in need while spreading joy to children with balloon giveaways. This year marks the 7th consecutive year of the initiative, made possible with the dedication of volunteers from Open Access BPO. Together, they distributed 1,000 meals and 700 balloons to the community.

----------
Learn more about our outreach programs and employee engagement activities: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#OABPOcares #CorpSocialResp
Open Access BPO