Overcoming Challenges Growing Offshore Call Centers

With the continued growth of offshore call centers there are significant challenges hiring and retaining agents. Learn about strategies that help call centers address such issues head on.

By Ofer Ronen in Call Centers 05/07/24

The call center industry is flourishing, adding 180,000 more jobs in 2023 compared to 126,000 more jobs the year before, according to global location advisory firm Site Selection Group. However, only 9,247 of those new positions were in the U.S., as companies continue to shift work overseas. On the other hand, 98,520 hires were made in India and 36,629 in The Philippines. This trend to hire more offshore is largely driven by economics and a desire to broaden customer service access.

Such growth requires more agents. But even in an expanding market, gaining and retaining them can be problematic. After all, call center turnover rates have reached an average of 60% annually according to Forbes. Turnover has long been high, due to factors including low wages, lack of growth opportunities, and job stress. However, there are a number of viable ways to reduce turnover, plus ways to expand the hiring pool for offshore call centers.

View of the earth and specifically Philippines from outer space.

Improve Agent Retention with Agent Assist 

While artificial intelligence may not be able to automatically respond to every call center scenario, the technology can help agents respond more appropriately in a broad range of situations by suggesting responses as a customer conversation unfolds, commonly referred to as Agent Assist. It can also mitigate agent burnout by reducing workloads, all while increasing productivity.

For example, a 2023 National Bureau of Economic Research academic paper cites a study in which agents who used AI to guide their conversations saw productivity rise by nearly 14%. Further, the lowest-skilled and least-experienced representatives experienced a 35% productivity improvement. With productivity improvements agents can expect to improve their pay over time, plus to experience less stress trying to figure out how to respond to inquiries.

And that’s just for starters. Increasingly, companies are learning that automation powered by AI and machine learning can drive continuous adaptation to call center needs, and customer needs. 

Tomato.ai is doing its part, helping contact centers improve agent performance through real-time speech augmentation. Overcoming mother tongue language limitations, in particular enhancing how they pronounce words and their level of accent,  can significantly increase the pool of agent candidates. It can also help agents improve their pay, given that their performance on calls will improve. Softening accents can also reduce agent churn, since lowering the abuse offshore representatives encounter because of their pronunciation can lower stress levels.

Beyond technology, though, there are other steps companies can take to recruit and retain call center reps. 

Establish a Strong Company Culture

Companies that have a relatively weak culture have a turnover rate of 48.4% (i.e. across verticals, including call centers). In contrast, the rate for those with a strong culture is under 14%. Top culture-building strategies include defining and sharing the company’s mission, values, and goals, and encouraging healthy communication. Companies should also prioritize employee wellbeing and treating employees with respect.

Promote Growth

Without opportunities to grow, employees can lose their motivation, become dissatisfied, and possibly quit. Companies should help agents grow in these ways:

  • Financially – The possibilities of increased income can be a motivating factor.
  • Professionally – Employees who gain new skills tend to be more motivated.
  • Career-wise – Opportunities to move up the organizational ladder inspire performance.
  • Personally – Encouraging employees to pursue personal goals makes the work more rewarding.

Provide Feedback and Recognition 

Most people would rather not work day in and day out without feedback regarding how they’re performing or how much their work matters. Regularly communicating with agents, recognizing good work, and providing constructive feedback can build enduring bridges between employees and management. 

The Takeaway 

The trend to locate call centers offshore began nearly a quarter century ago and continues unabated. While such centers are generally less expensive than their onshore counterparts, companies must find ways to better lure and retain agents in a still-growing market. This includes taking steps to decrease employee stress and finding ways to help agents be happier. In addition to the above suggestions, AI call center accent neutralization can improve job satisfaction. After all, happier agents result in more satisfied customers, which leads to improved profits and more job opportunities.

By Ofer Ronen in Call Centers 05/07/24