Telemarketing and Call Center Information

India Call Centers

India Has 80% of Offshore Outsourced TeleMarketing Share

India continues to be the top purveyor of outsourced telemarketing and call center business in the offshore market.

According to the Gartner Group:

  • India has 80% of the Offshore outsourcing market
  • India earned $27 Billion in revenue in 2007

Offshore outsourcing to India has become mainstream and offers great telemarketing services at a very low price. But India is not the only offshore telemarkeitng service to offer quality benefits and prices.

A Philippine call center, India call center, or Pakistan call center all are able to provide good services.  India leads because it was the early entry into the offshore telemarketing market. 

Philippine and Pakistan offshore call centers are increasingly strong players and are vying for their share of the offshore market.  South Korea and even China have positioned themselves to compete as well.

India Call Center Costs May Be Increasing

Costs are surging in the prime cities in India, as property values and rentals rise and wages increase, at an annual pace of more than 15 %.

Outsourcing firms are feeling the pinch from appreciating rupee, which reduces dollar-billed earnings. They are having to cut costs by expanding to less expensive locations.

India’s outsourcing companies have thrived with contracts from companies in the US and Europe.  This tapped the country’s low costs and large employee pool.  It has included jobs ranging from inbound call center staff to risk management and financial analysis.

About 50 billion dollars in revenue was logged last year by the entire information technology industry, which also includes software giants.

Offshore Call Centers on the Increase

As American companies struggle with budget trimming, their telemarketing budgets are being trimmed too.  Off-shore telemarketing is one answer to this dilemna.

India and the Philippines have surged ahead in supplying call centers for many American telemarketing projects.  The low cost, of as much as 50% to 75% LESS than on-shore competitors, has driven this growth.

Now other countries, including Korea and some African countries are joining the competition for American business dollars.  Off-shore telemarketing appears to be here to stay.

Even with complaints about understanding the English spoken by off-shore telemarketers, businesses are determined to keep these call centers.  Not only are they less expensive, they are supplied by a large number of employees who have strong technology training.  American employers complain that there are not enough trained people available in the science and technology fields in the United States.

So, like it or not, off-shore telemarketing is only going to grow.

The Language Barrier and Using Off-Shore Telemarketing

Off-shore telemarketing is being used primarily for in-bound customer service related projects.  And, it continues to be used mainly by large companies with huge in-bound needs.

The reason, of course, is the lower costs involved for off-shore services.  And in order to establish a large off-shore call center, the promise of  long lasting, huge projects are needed and only very large companies can guarantee that kind of contract.

But one complaint about using off-shore call centers that continues to plague these companies is the language barrier.  Sure, India and the Phillipines have English speaking populations.  But the accent is often so unclear to the American ear that the customer has difficulty getting his needs met.

Large busniesses such as Microsoft and Dell, for example, are apologetic.  Continual refresher English courses are part of the training these off-shore telemarketers receive.  And American phrases and trendy words are being inserted into part of the responses.

But still, lamentably, complaints are high regarding the language differential.  The problem for the customer is that they have no recourse.  Large companies are not offering another option.  So, for now, off-shore services are cheap and that’s more important than periodic complaints about unintelligible English…

When to Use Off-Shore Telemarketing

Within the last year or so, the cosmetic company, Avon Corporation, has begun using off-shore in-bound telemarketing to serve it thousands of sales representatives.  Other companies, such as Microsoft, and other large companies had already made the shift to off-shore telemarketing over the past few years.

The key word is “large.”  To make off-shore telemarketing worthwhile, your business must have large projects which service thousands of customers regularly.  The cost savings is also large.  Even huge.

Using off-shore telemarketing can save as much as 50% to 75% compared to the same telemarketing job done here in the U.S.  It’s no surprise then, why companies are making the switch off-shore.

Because of the logistics of travel and training for off-shore telemarketing, it takes a company with lots of resources to set up the projects.  And there needs to be a long-term committment so that locations in the Philippines, India and Korea can count on continual work for the thousands of hired employees there.

If you have  a business with smaller projects, it’s better to stay with a North American telemarketing service.  Though more expensive per call, the overall project is still financially manageable and easily overseen because it is local.

But if your company is growing and requiring huge telemarketing services over the long term, off-shore telemarketing is the best and most cost effective choice.

Off-Shore Telemarketing Services Save Money

Telemarketing continues to grow and, at the same time, companies are looking for better ways to use it.

One better way is to save money.  If your business is planning a very large telemarketing project, with thousands of calls that need to be generated, then off-shore telemarketing services may be your answer.

India and the Philippines are among the largest outsourcing services for telemarketing.  One reason U.S. companies choose these locations is because they originate from countries with large English speaking populations. 

But the main reason, and most often reported reason, for choosing off-shore call centers is the much lower cost.  It can be as much as 50% to 75% less than a similar service in the U.S.  It’s hard to overlook a savings like this.

Outsourcing Telemarketing Globally

Offshore telemarketing is one of the fastest growing resources for American businesses.  It’s hot in locations with high rates of English speaking workers such as  India, the Philippines, and the more westernized Israel.  These global competitors are trying to win over United States businesses with their increasingly sophisticated workforce.

The main advantage is obvious.  From a 50% to 75% LESS expensive than on-shore telemarketing, it’s no wonder businesses are looking globally.

India is the most popular offshore telemarketing location, having the largest educated, English speaking population in the world and are computer literate.  Bangalore, India is one of the most technologically savvy destinations in the world.  India’s workforce is trained and continually reviews presentation, sales, and communication skills.  

Israel, like India, is patronized by large multinational companies, including IBM, Microsoft, Compaq, Motorola, HP and Intel.  Companies know they will find highly educated, native English speakers who share a cultural understanding of the West.  While Israel’s salaries are not as cheap as in countries like India, the cost to American businesses is still significantly less than in America.  

The Philippines is another burgeoning location for outsourcing in offshore telemarketing, with its 90% English speaking ratio.

Offshore telemarketing is growing into a sophisticated industry that specialized in every kind of inbound and outbound transaction including direct sales, lead generation, appointment scheduling, verifying information, cleaning lists, research, surveys, and more.

Do Consumers Like to Order Stuff from TeleMarketing Call Centers?

Yes, consumers DO like to order products and serivices using telemarketing call centers!  Survey results don’t always validate this though.  That’s because consumers often don’t look at it this way…

Starting with last night’s pizza order, to asking the pharmacy to mail out a prescription, the general consumer would describe this action as “getting dinner” or “needing their meds.”  They just don’t think of it as using a type of telemarketing.  And yet telemarketing call centers all over the world are set up to receive these calls and “take the order”!

Order processing (also called “order taking” or “order fulfillment”) is a huge industry and is the most used type of inbound telemarketing call center services. Order taking is a part of telemarketing that can be simply filling an order from a customer who has seen the product in an ad or catalog, or it can be used to close the sale for virtually every product and service available today.

Is your business missing an opportunity by not having a customer service center that consumers can call to order your product directly? Yep, you might be…many businesses are.