The Perceived Impact of Successful Outsourcing on Customer Service Management by Wei Khong
Statement of the author’s purpose
The author’s main aim for this journal is to examine further the various impacts outsourcing has on both the Company’s perspective as well as the clients. It is imperative that the more customer a company can reach, the more the profit it can make in the long run. The article addresses the ideals of outsourcing both regarding monetarily and non-monetarily. In regards to monetary as described previously advances the performance of the business which is attained by a partnership agreement with another Company for the satisfaction of the customers. Although outsourcing appears to be the most appropriate means of supplying demand across the world, it can be a challenge to a company if it is not discussed adequately.
The relevance of outsourcing is significant for the expansion of an organization. According to the article, outsourcing as a task once conducted internally is a company contracting externally. Nonetheless, when adopting outsourcing, a thorough study should be taken into consideration. Initially, the staff may not be as flexible as desired because of the resistance to change. Thus, the communication of expectations and objectives should accompany commitment, support and also involvement from the management.
Moreover, outsourcing has to be planned to make sure that whoever is trustworthy can meet the needs of the Company. The Companies that poorly plan is usually prone to fail. However, when performed properly can provide a competitive advantage, financial achievements, minimize costs and increase productivity.
Supply Chain Management Theory
The advancement in technology has made the use of suppliers either nationally or locally to be more accessible and useful. The change in communication techniques and travel options have been on demand while globalization has become the standard of operation for the organization all over the world. According to the theory, during the development of a successful partnership, the manufacturers and suppliers of good and services must create a linkage or connection (Barney, 2012). The use of supply chain management theory is to facilitate and advance the bond or rather a connection while marking a partnership. Therefore, the supply chain management theory is relevant to the article because it explains the aspect of outsourcing. For example, the theory has demonstrated that communication is vital for partnering with the various organization during outsourcing. ‘’To make outsourcing work, there has to be effective and well-coordinated communication among cross-functional areas, support, commitment, and involvement from the top management.’’ (Wei Khong, 2005). The article has also addressed the issue communication as a significant factor for successful outsourcing.
Background of the issues
The customers are the driving force behind a positive performance of any business. There exist perception on the impact of outsourcing on customer service management. Customer service management is defined as how well an organization manages its customer services in regards to its effectiveness, quality, and productivity. On the other hand, outsourcing is identified as the adoption factors an organization undertakes to achieve its goals and expectations. Therefore, it must be stressed that the measures of all outsourcing and customer service management are perpetual (Kroes & Ghosh, 2010).
The author decided to survey 1000 companies across Malaysia using a random sampling technique. They examined the impact outsourcing has on customer service management. The Companies which replied to the questionnaire were the product, industrial, insurance, agricultural and retail sectors. Based on research findings, outsourcing requires to be well planned to involve the organization’s staff, the outsourced firms, and customers. It is imperative that employees are significant to the success hence having the right workforce is essential to get the job done appropriately. Moreover, implementing and coordinating outsourcing through strategic planning make sure there is a successful transition. The authors also concluded that the strategic plan of outsourcing is only a single asset to customer service management but still management inclusion, appropriate infrastructure and active contract negotiations among others are essential.
There are three significant requirements connected with effective outsourcing like strategic planning, implementation, and control. The strategic plan is outlined as adequate and comprehensive planning which is also applied in the application and control. According to Khong, to address all issue and concerns of outsourcing there ought to be particular facilitation to support and enforce the efforts. It is vivid that upon the formation of a strategic plan, implementation can start as the control aspect will make sure that all issues are performed, and the changes can be addressed in the right manner. The three concepts are relevant to the success of outsourcing and will give itself to short and long-term benefits. The achievement of strategic planning outsourcing with building an appropriate team highly ensures the satisfaction of customer experiences as the customer purchases reflect its success.
The data also showed additional evidence to support the satisfaction of customer service management is kept when there is a success in outsourcing. Thus, ‘’ the customers are likely to be more satisfied with the products and services.’’ The customers’ satisfaction with the products and services will also be satisfied with the customer care service received by the organization. It is imperative that the customers who are satisfied will not complain much and buy products from another organization. This provides the organization with a sense of loyalty to its clients. Successful outsourcing also makes sure that there is better management of customer contracts and level of satisfaction. It can also be said that an increased customer service improves customer relationship hence the success in regards to its achievement.
The Companies which desires to expand must be willing to use all its resources appropriately across all the sectors and departments. It is clear that outsourcing is among the strategies for expansion of the services. Nonetheless, a Company must strategically plan before all the major factors to achieve a full completion of success itself. The efficient communication between all departments through the transition will facilitate the growth factor. It is vital for a Company to begin with a thought of a plan. It is also crucial for the Company to ensure that employees are on board with the changes and are right people for the job to avoid opposition. In the process of outsourcing, it is vital to building trust with the organization or people to have a partnership with. Therefore, all this are important to ensure customer service management schemes for the satisfaction of the customers. Most importantly, when everything goes as expected, it is clear that everyone will benefit. The article states that outsourcing creates a competitive advantage platform for an organization in the market.
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource‐based theory. Journal of supply chain management, 48(2), 3-6.
Knox, S., Payne, A., Ryals, L., Maklan, S., & Peppard, J. (2007). Customer relationship management. Routledge.
Kroes, J. R., & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance. Journal of operations management, 28(2), 124-143.
Wei Khong, K. (2005). The perceived impact of successful outsourcing on customer service management. Supply Chain Management: An International Journal, 10(5), 402-411.