

Ken Carlon of Optima explains how increasing occupancy in a call center can be a key to increasing income.
What are some of the neglected or misunderstood ways to make a call center more profitable?
For outsourcers it's generally utilization in terms of occupancy. There is a false economy that can be created around profitability by client where an outsourcer may generally feel, in order to be profitable, they need to charge a certain amount per hour. This measure of profitability per client can be true when a center is running at 85%+ capacity, but when they are not, this model goes out the window. The first priority should be to maximize their capacity utilization. Once a center is built and staffed, management, executive, IT, facility and equipment costs are in place and ongoing. As long as a client is paying a rate greater than the variable cost (agent, supervisor, telephone company, etc.) associated with a given piece of business, the excess contributes to the overhead and thus the profitability of other pieces of business or the business as a whole (depending on how you look at it). The key is any empty seat is more expensive than one occupied at a low or undesirable rate.






» Readers Corner: Why Outsource to Costa Rica? from CallCenterScript
Today, we feature Richard Blank's thoughts on Outsourcing to Costa Rica. He posted in my discussion forum in Call Center Blurbs. In today’s highly competitive outsourcing market, a closer proximity to the United States , Central T... [Read More]
Tracked on: January 28, 2008 6:30 PM | Permalink to Trackback