Asian contact centers see higher profits

Nearly one in two contact centers in Asia are enjoying more revenue and higher profits, but they need to address manpower issues to continue the upturn, according to a new study on Asian contact centers.

The findings of the inaugural Aspect Contact Center Index Asia commissioned by Aspect Software, revealed that around 48 percent of contact centers in Asia reported an increase in income, while 47 percent saw a rise in profit.

Some 200 contact center managers from various industries in India, Korea, Malaysia, the Philippines, Singapore and Thailand were surveyed in May and June for the index. The centers were assessed based on five criteria--customer service, human resources, operations, revenue, sales and technology.

Catriona Wallace, managing director of callcentres.net, which jointly conducted the survey, said "mature markets" like South Korea and Singapore performed best in the region.

Korea scored 75 out of a maximum of 100, while Singapore had a score of 71. The average for Asia was 67, with Thailand scoring the lowest of 59. Australia, which callcentres.net has been tracking using the same index since 2004, had a score of 71, said Wallace.

According to Pramod Ratwani, vice president of Asia-Pacific and the Middle East at Aspect Software, the findings will help contact centers in the region improve themselves as well as recognize how they compare against their peers.

The Asian contact center industry, he added, is growing at about 15 percent annually, with countries such as India growing at a much faster pace. However, regional businesses face challenges, particularly in customer and agent retention.

Challenges to overcome
Human resource issues such as absenteeism and staff turnover are a "major issue for Asian contact centers", noted Wallace.

She explained that on a daily average, 7 percent of the contact center workforce in Asia are absent, short of the ideal of less than 5 percent. The problem is especially severe in India, where about 10 percent of contact center agents are on medical leave or cannot be accounted for on any given day.

India and Thailand experience the greatest turnover rates, Wallace added. About one in five contact centers in Asia experience an annual agent turnover of more than 20 percent. "The problem of turnover is more acutely felt in Asia than in Australia or other parts of the world," she said.

While contact centers in Korea and Singapore performed relatively well in areas such as customer service, productivity and human resources, fewer reported higher profit margins, said Wallace. This could be a result of high wages in the two countries, compared to that in other markets, she explained.

India topped the profitability rankings, with 64 percent of contact centers indicating an increase in profits. More than one in two contact centers in Malaysia and the Philippines also reported higher profitability.

Revenue-wise, India and the Philippines again outshone the other countries--58 percent and 62 percent, respectively, of contact centers in these countries reported higher revenues.

Besides focusing on improving HR management, contact centers in Asia need to continue to invest in technology, to compete effectively against players in the global market, said Wallace. The survey found that a high percentage of contact centers in South Korea employ tools such as quality monitoring and analytics software, while a significantly higher number in India and the Philippines use Internet Protocol technologies.

Thailand, an "emerging market", did not perform as well as its neighbors, said Wallace. The country "has some considerable human resources challenges", she noted, such as high turnover rates and greater dependence on part-time workers.

"Hiring of part-time workers is typical for a young market...[but] as the industry matures, it will need to look toward a full-time or stable market, and start to invest in human resources elements that will make agents stay," said Wallace. The elements that Thailand needs to focus on are remuneration, career development, training and productivity levels, she explained.

The bi-annual Asian survey is next due in November and will include China and Hong Kong.