Customer care vital for sucess: Survey

Improving customer care is the number one priority for the British telecoms industry when outsourcing, according to research announced today by LogicaCMG.

The study indicates that 100% of operators surveyed believe that freeing up resources to focus on customers is vital to their success in the marketplace.

All operators highlighted the main reason for outsourcing was to help them focus more on customer care in the face of intense competition.

The survey reveals that the majority of operators expect to reduce costs by an average of 17-20% through outsourcing, with some looking to cut costs by more than a third.

In addition to managing costs in a competitive environment, telecom operators cited a target of 5% reduction in time to market for key applications and consumer services.

All operators surveyed said the cost savings made through outsourcing would be reinvested back into the business, as opposed to using the savings to either reduce debt levels or to place in cash holdings, and 80% said they believed savings would improve shareholder returns.

Derek Kemp, managing director, of LogicaCMG's UK telecoms business, said: "Contrary to the typical view of outsourcing, the telecoms industry is increasingly seeing this activity as a way of reinvesting in business rather than just cutting costs."

Other key benefits seen by operators in the shift to outsourcing include 40% of respondents noting an improvement of market and brand reputation.

The study also shows the industry is increasingly seeing outsourcing as an everyday activity with business areas such as HR, payroll or finance routinely outsourced.

One-fifth of operators have plans already in place for further outsourcing of various functions over the next two years.