Wednesday, April 6, 2011

Strategic Sourcing: IBM Focus on Core Competencies

Since 1992, IBM faced a fierce competition. After rethink their business model, they recognized they need to change the current strategy to pursue the lower sales and services costs. This action can help IBM to focus to become the best solution provider and advance technology. Hence, the outsourcing of call center is a good method to provide the best of quality and cost-efficiency for customer. Also, they find they are not the professional company in design and management of call center. So, they decide outsourced the design, staffing and management of call center to a TeleServices Center to implemented the how process of the sector. Above IBM’s expectation, TeleServices use less than 90 days to complete establishment and begin to work. This is only one third time of IBM should use. The IBM TeleServices Center has an integrated marketing strategy. They divided the center into three parts: the customer services group, the Telesales group and the Direct Marketing group. The customer services group in charge of the simpler question and provide the technical support to solve complex problem. The Telesales group in charge of account management and the sales of IBM product which does not need field sales support. The Direct Marketing is working on the new product generation to ensure the customer satisfaction to inbound customer services and support. The result of this new strategic outsourcing is very successful. We can learn it from below data : • Reduced the cost of customer contact 97% - from $500 for field contact to $15 for telesales contact • Shortened the field sales cycles up to 80% • Generated 125% of goal for leads • Exceeded customer expectations 78% of the time - based on a customer service satisfaction survey • Built a marketing database - with customer information that improves targeting, responsiveness, relationships, and retention. Source:

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