• Challenge and assurance to contract management of major contact centre outsourcing contracts
  • Outsourcing
  • Benchmarks
  • Customer service
  • Contracts
  • Contract Management
  • Controlss

Mobile Telco UK

Review of ‘VFM’ and operation of customer service outsourcing contracts

Mobile Telco has a constant requirement to optimise operations to free cash for developing the business. As part of a UK-wide cost reduction programme, David was engaged to lead a review of its key contracts in order to identify potential opportunities to recover lost value either through application of contractual terms and service level penalties or by addressing ineffective remuneration structures. As a large consumer business, it has a large, high value outsourced call centre estate dealing with inbound and outbound services.

On Customer Care, our work was led by David Costelloe who (1) obtained and assessed of the key contracts against good practice and pricing benchmarks, (2) interviewed personnel responsible for administering the contract and (3) observed what controls were applied prior to invoice payment and the use of service level agreements. We were then able to quickly identify best practices and areas for tighter control, and validated these using data from the ACD systems. We were able to draw upon our industry knowledge in assessing whether the contracts represented good value for money by assessing costs per productive minute with reference to benchmarks. We then made recommendations for improving the effectiveness of the remuneration structure in certain contracts, primarily correctly incentivising outsourcers’ delivery of outbound telemarketing services, in order to maximise value in the future.

The work provided assurance to the CFO that the outsourced cost base was both well managed and securing inputs at highly competitive unit costs.