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A shift in the Australian outsourcing mindset

Sean Mather, chairman of AusConnect Association, recently had a talk about the status of the outsourcing market in Australia particularly, the mindset and business priorities of companies in Australia.

The sudden rise of Indian and Philippine outsourcing 7 years ago reached the Australian shores to a point that every business was outsourcing. A majority of the Australians did not welcome the change warmly. They felt invaluable as outsourcing replaced a lot of people in their jobs. As a result, Australians went back to in-housing processes. However, market conditions, astronomical costs, and new changes are shaking things up again.

According to Sean, the mindset of Australians when it comes to outsourcing is once again shifting. Gone are the days when people think of cost-cutting when outsourcing is mentioned. That is just the tip of the iceberg, outsourcing does a lot more these days. It addresses new challenges brought on by new market conditions that all companies will be facing.

According to Sean, here are the key factors that changed the Australian outsourcing mindset:

It’s all about customer experience and customer excellence.

When outsourcing became unpopular, Australian companies moved back to onshore again, making it their market differentiation in order to appeal to their local market.

Companies are now realizing that customer service excellence is what ultimately drives consumers. Sub-Par customer service can result in customer loss, and it is a tough pill to swallow. Thus, businesses are now seeking ways to make sure that they are identified with excellent customer service.

The new generation wants a personalized type of communication.

Sean shared the story of how different his kids, who belong to the Gen Y, interact. The new generation wants broader, warmer, more personalized conversations with businesses, different from the cold, monotonous, and over-scripted talks a lot of businesses implement.

One communication channel is not enough, multi-channel communication is the key.

A lot of companies are restructuring in order to keep up with the demands of the customers. Customers now have different preferences in terms of communication, and multi-skilled BPO providers who can also supply different communication channels can help tremendously in providing superb customer service.

The shift to outsourcing in Australia is happening. Thus, while companies who prefer in-housing processes are still the majority (55%), the rapid change of market expectations is requiring businesses to raise competitiveness.

Australian businesses are seeking partners that can add value and they are looking to build more partnerships in the Philippines, one of the biggest, reputable, and closest BPO services market.

We are one of the companies that can add to your business’ capabilities. Check out our BPO services page and start getting more competitive.