Mary Murcott, pictured in the first row, second from the right.

NOVO1 is a U.S.-based contact center supporting clients’ business goals in building customer relationships and growing their brands. NOVO1 Smart Desktop Solutions and Customer Obsession Program incorporate game-changing technology and top 1% industry best-practices to deliver ideal customer experiences.

Following the two-hour roundtable discussion with the President and other industry leaders, Murcott participated in an “Insourcing American Jobs” forum at the White House hosted by President Obama and Vice President Biden. Other roundtable CEOs included leaders from Ford Motor Company, DuPont, Intel, Rolls Royce, Master Lock, KEEN, AGS, GalaE., Lincolnton Furniture, Siemens, ThyssenKrupp, Otis, and Chesapeak Bay Candle.

Later that day, Mary was a panelist in a session titled “Status of Businesses in the U.S.” moderated by U.S. Small Business Adminstrator Karen Mills which was boadcast on C-SPAN.

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FORT WORTH, TX, January 12, 2012 – - Mary Murcott, CEO of NOVO 1 met with a select group of CEOs and President Obama during a 2 hour roundtable discussion yesterday to explore ways to bring jobs back to the U.S. Following the roundtable she participated in an “Insourcing American Jobs” forum at the White House hosted by President Obama and Vice President Biden and was a featured speaker during an afternoon panel discussion moderated by U.S. Small Business Administrator Karen Mills.
The forum focused on the increasing trend of insourcing – where companies are bringing jobs back to the United States and making additional investments here in America. The President, Vice President, members of the Cabinet and other Senior Administration Officials led a discussion on ways to encourage companies across the country to insource American jobs and help rebuild our economy for the future.

In prepared remarks, President Obama said, “Today I am meeting with companies choosing to invest in the one country with the most productive workers, best universities, and most creative and innovative entrepreneurs in the world: the United States of America. That’s exactly the kind of commitment to country we need – especially now, at this make-or-break moment for the middle class. And I’m calling on those businesses that haven’t brought jobs back to take this opportunity to get the American people back to work. That’s how we’ll rebuild an economy where hard work pays off and responsibility is rewarded – and a nation where those values live on.”

“Since day one, this Administration has been focused on encouraging investment and job creation here at home,” Vice President Biden added. “The business leaders coming here from across the country today have looked at the facts and concluded what the President and I have been saying all along: that America is the best place in the world to do business and create jobs. We’re calling on other companies to follow their lead and bring jobs back to America—jobs that provide middle-class families not just with a paycheck, but with a fundamental sense of dignity.”

Murcott was recognized as an expert in customer experience and has for 10 years advocated the benefits of bringing contact center jobs back to America. “We are not against off-shoring because it is an “America First” position. We are against off-shoring customer contact because the economics prove it rarely works. It is not a good business decision, customers don’t like it. And it is not a lower cost solution. In fact, companies can save 15% by bringing jobs home,” said Murcott. “NOVO 1 @ Home provides work at home options which are particularly effective in mitigating any cost difference between off-shore and on-shore with well-educated and experienced customer service representative.”

Other roundtable CEOs included leaders from Ford Motor Company, DuPont, Intel, Rolls Royce, Master Lock, KEEN, AGS, GalaE., Lincolnton Furniture, Siemens, ThyssenKrupp, Otis, and Chesapeake Bay Candle.
About NOVO 1: NOVO 1 is a U.S. based contact center supporting clients’ business goals in building customer relationships and growing their brands. NOVO 1’s Smart Desktop Solutions and Customer Obsession Program incorporate game-changing technology and top 1% industry best- practices to deliver ideal customer experiences. Find out more online at: www.NOVO1.com.

# # #
Contact:
Jack Wilkie
NOVO 1
Office: 817-355-8909
Mobile: 515-321-5467
E-Mail: jwilkie@novo1.com

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DENISON, TX (November 8, 2011) – Civic and business leaders celebrated NOVO 1’s expansion to Denison at a recent ribbon cutting ceremony at the new contact center in Eisenhower Business Center About 120 people attended the event, including representatives from the Denison Development Alliance, Denison Development Foundation, Denison Chamber of Commerce, Denison Mayor Robert Brady and District 62 Texas State Representative Larry Phillips.

The NOVO 1 contact center is a 30,000 square foot facility that can accommodate more than 500 employees. “Just 3 months ago our company announced plans to expand into Denison and in that time we have invested in the infrastructure for connectivity to our client with redundant systems for disaster recovery in Fort Worth,” said Leila Lassetter, director of NOVO 1’s Denison Contact Center. “More importantly we have hired 150 customer service advisors and have commitments from another 275 people ready to begin customer service training.”

“NOVO 1 is providing good quality jobs for the citizens of Denison and has made extensive investments in the facility to create a great work environment,” said Mayor Brady. State Representative Larry Phillips added, “NOVO 1’s culture and defined set of beliefs perfectly reflect the values of the leadership and citizens of Denison.”

“NOVO has made an immediate connection to the area participating in job fairs, community events, and hosting luncheons with local leaders to get the message out regarding their unique contact center operation and the jobs immediately available for the greater Denison area,” said Shelle Cassell, President, Denison Chamber of Commerce.

The company is seeking an additional 200 customer service advisors over the next 30 days. Applications are being taken at NOVO 1 located at 2415 Austin Avenue in Denison or online at www.novo1.com

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About NOVO 1: NOVO 1 is a U.S. based contact center supporting clients’ business goals in building customer relationships and growing their brands. NOVO 1’s Smart Desktop Solutions and Customer Obsession Program incorporate game-changing technology and top 1% industry best- practices to deliver ideal customer experiences. Find out more online at: www.NOVO1.com.

Contact: Jack Wilkie
NOVO 1
817-355-8909
Mobile: 515-321-5467
Email: jwilkie@novo1.com

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Fort Worth, Texas (November 7, 2011) – Customer experience futurist, and NOVO 1 CEO, Mary Murcott will address America’s Health Insurance Plans (AHIP) association members on November 16 during “Fall Forum 2011” in Chicago. Her session is titled “Under the Radar: Customer Experience Metrics That Can Dramatically Impact Customer Loyalty.”
“In order to drive business results it is important to measure business process metrics from the customer’s point of view,” said Murcott. “There are 30 powerful and innovative metrics most companies don’t know about, that go beyond the typical performance measures of first call resolution, average handle time and service levels. This information will shed new light on true customer experiences and don’t require an investment in new technology. By identifying proper use of key metrics, companies can benefit from improved customer satisfaction and enhanced customer loyalty.”
The AHIP Fall Forum 2011 features sessions on trends and opportunities shaping the healthcare system and educational sessions that guide organizations in healthcare reform implementations. The event focuses on innovative products and services that aid health insurance plans meet the needs of an evolving healthcare system. Meetings will be held at the Renaissance Chicago Hotel, One West Wacker Drive, Chicago, IL.
For conference information and registration visit: http://www.ahip.org/links/fallforum2011/
Murcott is an international keynote speaker and author of “Driving Peak Sales Performance in Call Centers”. She is an expert authority on sales, operations, performance optimization and first contact resolution.

# # #

About AHIP: America’s Health Insurance Plans (AHIP) is the national trade association representing the health insurance industry. AHIP’s members provide health and supplemental benefits to more than 200 million Americans through employer-sponsored coverage, the individual insurance market, and public programs such as Medicare and Medicaid. AHIP advocates for public policies that expand access to affordable health care coverage to all Americans through a competitive marketplace that fosters choice, quality and innovation.

About NOVO 1: NOVO 1 is a leading U.S. based customer contact center with operations in Fort Worth and Denison, Texas; Billings, Montana; Holland, Michigan; and Waukesha, Wisconsin. The company is dedicated to tailoring contact center solutions to support clients’ business goals in building customer relationships and growing their brands. NOVO 1’s Smart Desktop Solutions and Customer Obsession Program, incorporate game-changing technology and top 1% industry best-practices to design customized solutions to create ideal customer experiences. Find out more online at www.NOVO1.com
Contact:
Jack Wilkie
NOVO 1
Office: 817-355-8909
Mobile: 515-321-5467
jwilkie@novo1.com

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Fort Worth, Texas (July 26, 2011) - NOVO 1 officials announced today they will be opening a 30,000 square foot customer contact facility in the Eisenhower Business Center located at 2415 South Austin in Denison, TX. The company will employ up to 300 people over the next three years and will be operational by September.

Mary Murcott, chief executive officer of NOVO 1 said, “NOVO1’s growth, driven by existing client development and new client engagement, necessitated expansion beyond our current four contact centers in Texas, Montana, Michigan and Wisconsin. Our core business focuses on delivering the ideal customer experience by accessing the right information faster and delivering it consistently by advisors who are knowledgeable, helpful, friendly and patient. It all starts with people so access to a high-quality and available labor market was a prime factor in our site decision.”

“Arledge Partners Real Estate Group brought the site to our attention,” added Murcott. “We were highly impressed with the employee base and community support in Denison. An added bonus was having Workforce Solutions Texoma located next to our new contact center.”

The Denison Development Foundation owns the space NOVO 1 will occupy in the Eisenhower Business Center. More than $1 million will be immediately invested in equipment and facility updates so the center is fully operational by September. “Denison and the Texoma area have combined infrastructure and marketing, coupled with civic leadership to attract quality employers like NOVO 1 and I welcome them to our growing business community,” said Bill Retz, Chairman of the Denison Development Foundation.

“It is a great day in Denison every time we are able to welcome another premier company with great job opportunities to our city” remarked Mayor Robert Brady, City of Denison. “The recruitment of NOVO 1 is another example of the community efforts of which we are extremely proud.”

“The efforts of City officials, the Denison Development Foundation and the Denison Development Alliance board members and our superb community partners have once again been successful in another major recruitment effort in 2011,” stated DDA Chairman Harry Kirshman. “Our team is confident NOVO1’s expansion to Denison will be a major factor in their continued growth which will benefit our community by providing new job opportunities.”

“We plan to hire 350 employees for a seasonal project in 2011 and look to create sustainable year round work for trainers, operation team leaders, and customer experience advisors in the future,” stated Murcott. One of our company values is “employees first” because only happy employees can provide a happy experience for customers which in turn keeps our clients happy. We will make every effort to provide an excellent work environment with growth opportunities for our employees.” Descriptions of immediate job openings are available at Work in Texas.

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About NOVO 1Since 1987, NOVO 1 has been dedicated to tailoring contact center solutions to support clients’ business goals in building customer relationships and growing their brands. NOVO 1’s Smart Desktop Solutions and Customer Obsession Program, incorporate game-changing technology and top 1% industry best- practices to design customized solutions to provide ideal customer experiences. Find out more online at: www.NOVO1.com.

Contact:
Jack Wilkie
NOVO 1
Office: 817-355-8909
Mobile: 515-321-5467
jwilkie@novo1.com

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Fort Worth, TX (March 7, 2011) – Identifying and utilizing the right sales measurements can drive business results while fostering a rewarding culture that boosts customer service to new heights. Mary Murcott, CEO of NOVO 1 contact centers will co-present with Chris Brown, SVP of Frontline Performance Group at the American Telemarketing Association (ATA) annual convention being held March 13-16, 2011 in Phoenix, Arizona. Their presentation entitled, The Secret Sauce – Sales Metrics That Really Matter,” will be moderated by Angela Morris, President of Quality Contact Solutions, Inc.

“Without the right sales metrics in place, companies can’t access real-time feedback to sustain performance improvements” said Murcott. “Successful sales teams require superb planning and consistent performance tracking to achieve optimal results and identify missed opportunities.”

Murcott, Brown and Morris will define key metrics, describe the formulas to calculate their impact on performance and explore real-life case studies of contact centers that have implemented the right sales metrics and sales goals. They will also describe pitfalls that include: singular metric focus, incentive complexity, low performer fixation, assuming incentive understanding and communicating percentages. “The proper use of key metrics and incentives can result in significant new revenue streams, improved customer satisfaction and enhanced customer loyalty” said Brown.

What: The Secret Sauce- Sales Metrics That Really Matter
Who: Mary Murcott, CEO, NOVO 1 contact centers; Chris Brown, SVP, Frontline Performance Group; Angela Morris, President, Quality Contact Solutions, Inc.
Date/Time: Monday, March 14, 2011; 10:30 – 11:30 a.m.
JW Marriott Desert Ridge
5350 East Marriott Drive
Phoenix, Arizona

About the Speakers
Mary Murcott is CEO of NOVO 1, an international keynote speaker and author of “Driving Peak Sales Performance in Call Centers”. She is a contact center futurist and authority on sales, operations, workforce planning, and first contact resolution. NOVO 1 is a leading customer contact center with operations in Fort Worth, TX, Billings, MT, Waukesha, WI, and Holland, MI. The company has more than 1400 employees and generates annual sales in excess of $43 million. NOVO 1 is recognized for delivering the ideal customer experience for their clients with American-based solutions that reduce complexity through a proprietary Customer Obsession Program and Smart Desktop technology. Find out more online at www.novo1.com.

Chris Brown has helped businesses in over 100 cities across North America dramatically improve their service, sales effectiveness and profitability. Brown possesses 22 years of service and sales experience in a dozen industries and across all four traditional sales platforms. He has delivered more than 200 seminars for clients worldwide, and is a prominent writer in several trade magazines. Brown is SVP for Frontline Performance Group, a leading sales consulting business based in Winter Park, FL www.frontlineperformancegroup.com.

Angela Morris is President and Founder of Quality Contact Solutions and QCS At Home. As an industry leader, she is recognized as one of the leading operations and performance management experts in the call center industry. She frequently speaks and writes about improving call center performance and how to ensure regulatory compliance. Her company is based in Omaha, NE www.qualitycontactsolutions.com.

###
Contact:
Jack Wilkie
NOVO 1
Office: 817-355-8909
Mobile: 515-321-5467
jwilkie@novo1.com

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NOVO 1 call center in Holland growing rapidly
Pete Daly
Published: January 31, 2011

HOLLAND, Michigan – A new NOVO 1 customer contact center that opened last summer in Holland had expected to have about 50 employees on the job by year-end – but already has 160. NOVO 1 just added a new site director there, too.

Mary Murcott, CEO of the Texas-based company, said that many American companies that began using offshore call centers 10 or 15 years ago “are bringing those call centers and contact centers back home, but nobody seems to want to talk about it.”

Murcott maintains that American companies can save 15 percent by “bringing their contact centers back to America” from India and the Philippines. About 12 percent of the people employed taking calls from customers on behalf of American companies are based overseas, she said.

Many American corporate executives who decided to offshore their call center service “have been looking at the wrong metric,” she said, because they haven’t been looking at all the “ancillary costs” of overseas call centers – especially the cost of customer dissatisfaction when a customer’s problem can’t be resolved on the first call, and perhaps not even by the third or fourth call.

In many cases, the language difference is a challenge, but compounding that are situations where the overseas call center worker simply doesn’t fully comprehend what the customer’s specific problem is back here in the U.S.

Murcott said that when U.S. business began off shoring customer contact centers 10 or 15 years ago, “there were a lot of easy calls to put over there.”

Now, she said, customer inquiries that are easy to resolve are typically handled on the company website or by phone via interactive voice response.

“Now what is left are the hard calls, the ones that are contextually sensitive, the ones that require higher interpersonal skills to communicate. And quite frankly, while we love the people over in India and Philippines, we don’t think they’re up to it,” said Murcott.

Murcott added that many new call centers are now being set up on the outer islands of the Philippines, “where the language is a really difficult barrier.”

Murcott recently wrote an article entitled “The Business Case for Repatriation of Contact Center Jobs Back to America,” in which she stated that “most centers we see returning to the U.S. or their country of origin are exiting India, but others are returning from near-shore countries, also. Last year, a highly respected personal investment firm brought their call center jobs back from Costa Rica. Their customers spoke out. The company listened.”

Murcott writes that most companies won’t talk publicly about the repatriation of their call center locations, because they don’t want to admit they made a mistake, or because some of their other internal divisions will remain off-shored.

Recent off-shore tax legislation that did not pass in Congress was unnecessary, maintains Murcott, because “companies who off-shored customer contact are already experiencing financial penalties from customers who are taking their business elsewhere. Historically, a bad decision which affected customer service took about three years to fully impact shareholders. We know that cycle has shortened considerably in recent years.”

NOVO 1, founded in 1987, has its corporate headquarters in Forth Worth, Texas, with additional customer service centers in Billings, Mont.; Waukesha, Wis., and Holland. It has more than 1,400 employees and generates annual sales in excess of $43 million.

In 2009, NOVO 1 was acquired by Glencoe Capital and is now part of Glencoe’s Michigan Opportunities Fund portfolio of companies. Founded in 1993, Glencoe Capital is a private equity firm focused on lower middle-market companies. The Michigan Opportunities Fund, one of two funds Glencoe now operates, was established in 2008 and “represents a groundbreaking partnership of public and private interests in the deployment of private equity capital,” according to the Glencoe website.

The Michigan Opportunities Fund makes lead-sponsored acquisitions and growth equity investments in companies that conduct a material portion of their business operations in Michigan, and it may also invest in companies located outside of Michigan that demonstrate a strategy for expanding business operations into Michigan.

In January, NOVO 1 announced that Patrick Blanchard had been named site director for the Holland facility. Blanchard, a resident of Hudsonville, has more than 28 years of experience in financial and telecommunication call center operations. Most recently, he was vice president of call center operations for Huntington Bank, and prior to that, vice president of call center operations for the Sky Financial Group.
Blanchard said NOVO 1 is different because most customer contact centers in West Michigan are part of a corporation, while it is an independent business providing service to corporations.

He noted that NOVO 1 is still looking for another 12 to 15 customer service representatives. Applications are accepted for NOVO 1 jobs at the Michigan Works service centers in Ottawa and Allegan counties.
The Holland contact center has room for about 350 employees; NOVO 1 received a $1 million federal grant plus other local incentives to locate in Holland, with the agreement that it would employ 350 people within three years.

“We still need to fill probably another 200 to 250 seats” to fill the NOVO 1 contact center, said Murcott, which will require getting more client companies.

Right now the Holland facility serves companies in transportation, logistics and telecommunications, she said. Throughout the U.S., it also serves other industries such as health care, financial, retail and energy. The services range from dispatching trucks to answer customer service calls and making calls as part of a customer retention program.

The new facility was opened in July with assistance from a $1 million federal Community Development Block Grant through the Michigan Economic Development Corp.

Greg Robinson, assistant city manager of Holland, said at the time that $500,000 of the block grant will be used to help pay for machinery, furniture, fixtures, computers and other related equipment. The other $500,000 will be used by NOVO 1 in training its new employees.

The city of Holland also granted NOVO 1 a PA 328 abatement on all personal property taxes at the new business, which will be worth an estimated $115,000 over the next nine years.

NOVO 1’s facility is owned by the Robert Grooters Development Company. It was last used temporarily by Haworth.

According to county documents related to the grant, most of the NOVO 1 employees will be customer service representatives earning a starting wage of $9 per hour. About 15 percent will be in technical, supervisory and management positions with salaries ranging from $40,000 to $70,000.

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Fort Worth, Texas (January 11, 2011) – Patrick Blanchard has been named site director for the NOVO 1 contact center in Holland, MI. He joins NOVO 1 with more than 28 years experience in financial and telecommunication call center operations.

Most recently, Blanchard was vice president of call center operations for Huntington Bank, a $53 billion regional bank holding company. Prior to that, he held the position of vice president of call center operations for the Sky Financial Group. .

Blanchard possesses significant customer service experience through a variety of roles, such as site leadership, business development, inbound and outbound sales management, management development and training.

“Patrick brings a wealth of experience to NOVO 1″, Chief Operations Officer Eric Rothert said. “He will lead two critical areas of our business, including client management and development. He will also provide thought leadership with a keen focus on operational excellence. The addition of Patrick to our team positions us well to advance our strategic priorities in West Michigan and strengthen our brand.”

Blanchard holds an undergraduate degree in English and Spanish from Florida State University and a master’s of business administration from Georgia State University.

He and his wife, Susan, have two children and reside in Hudsonville, MI.

####

About NOVO 1
NOVO 1 is a leading customer contact center with operations in Fort Worth, TX, Billings, MT, Waukesha, WI, and Holland, MI. The company has more than 1400 employees and generates annual sales in excess of $43 million. NOVO 1 is recognized for delivering the ideal customer experience for their clients with American-based solutions that reduce complexity through a proprietary Customer Obsession Program and Smart Desktop technology. Find out more online at www.NOVO 1.com.

Contact:
Jack Wilkie
NOVO 1

Office: 817-355-8909
Mobile: 515-321-5467
jwilkie@novo1.com

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My position is not based on nationalism. American centers do not do everything right. In fact, many back office functions, properly re-designed, can be effectively off-shored at a fraction of the cost – as long as there is no direct customer contact. So, we are not against off-shoring because it is an “America First” position. We are against off-shoring customer contact because the economics prove it rarely works well. It is generally not a good business decision. Customers don’t like it. And it is not a lower-cost solution. So why do it?

Off-shore tax legislation is unnecessary

The recent off-shore tax legislation that did not pass in Congress was unnecessary. It was shelved, and rightfully so. Companies who off-shored customer contact are already experiencing financial penalties from customers who are taking their business elsewhere. Historically, a bad decision that affected customer service took about three years to fully impact shareholders. We know that cycle has shortened considerably in recent years.

Today’s business leaders preach that service is not a commodity; but a differentiator – so why treat service as a commodity, and off-shore it to the lowest cost provider? That does not make good business sense.

Terms and Trends

Outsourced vs. Off-shored. The writers of the new TV program “Outsourced” clearly have not done their homework. The term should be “off-shored”, not “outsourced”. Outsourced refers to companies who contract for some of their work to be performed by another company that specializes in a process and delivers better value. Off-shored is what the name implies – sending work across the ocean to another part of the world, with a perceived labor rate advantage.

Near-shored. Generally refers to a trend to send work to a nearby country, such as Mexico, the Dominican Republic or Canada. For Spanish-speaking calls only, Mexico has been a good alternative. Countries like the Dominican Republic, whose populations have many relatives in the US, have had some limited success.

Most centers we see returning to the U.S. or their country of origin are exiting India, but others are returning from near-shore countries also. Last year, a highly respected personal investment firm brought their call center jobs back from Costa Rica. Their customers spoke out. The company listened.

Two years ago, a premium credit card company brought their jobs back from India and the Philippines to their customers’ points of origin in the UK, Australia and Canada. They realized a reduction in their total costs by up to 15%.

Captive centers. Captive off-shore centers are run by U.S. or local managers of the core company. These centers seem to be operating better than those belonging to companies that have both off-shored and outsourced. While there are exceptions to this rule, our experience suggests that creating two barriers (off-shored and outsourced) between your company and your customers is problematic. This is not based on a scientific study, but an observation and consensus from a number of industry consultants and experts.

Country-jumping. Annual turnover rates can exceed 150% in India, and four-year contract renewals, rate increases can exceed 40%, due to the shortage of strong English-speakers to meet the demand. Accordingly, it is no wonder that companies are participating in this new exercise. In the last five years, the migration has been from India to the Philippines. In India, the problem most customers experience is lack of context. The reps are trained to read from a script, and, if any divergence from the script is necessary, the rep is lost (sometimes repeating the script over and over again). Another common problem is the inability of Americans to understand the cadence of the Indian dialect. And, most people don’t even consider the reverse problem – if we are having a hard time understanding the Indian representatives, they are having equal difficulty understanding us.

The Philippines has been somewhat less problematic. They have 50+ years of history working with Americans following WW II. Their English is much easier to understand. Philippine agents are less formal in their demeanor and speech pattern, and more conversant with how Americans conduct business. But with well over 200,000 call center jobs currently in the Philippines, we will soon tap out that market again because of language limitations, wage inflation and turnover issues. Then the global search for the “next best location” will begin again. In fact, it is happening already. We get calls at our company all the time asking where to go next?

Think about making it the U.S. for American customers.

Three reasons companies embraced off-shore

Internet Infancy. Ten or fifteen years ago, when off-shoring of call center jobs was in its infancy, the internet was, as well. Internet commerce was not yet adept at automating or answering the easy calls. The IVRs were not facile at ANI capture and were poorly designed. So, easy calls were still handled by phone reps. Fast forward ten years. Any smart business has now automated the easy calls – either through IVR, internet or mobile apps. Tier 1 calls, like password resets, order entry or information calls, have generally been automated. What remains are Tier 2 or 3 calls — problems, complaints, suggestions, and complex sales transactions. These tier 2 or 3 calls cannot be handled by entry-level positions. They are context-sensitive calls requiring complex interpersonal skills, cultural sensitivity and the ability to work the high wire. That is, without a strict script or call flow guide.

Demand for lower cost. An emphasis by companies strictly on their next quarter’s earnings created a requirement for lower costs. Many of these companies thought they could achieve dramatically reduced costs off-shore. Additionally, domestic companies could avoid the costs of higher-cost benefits. Many large outsourcing companies readily complied with these objectives, since the outsourcers’ profit margins were much higher off-shore than on-shore. Outsourcers gave their clients what they wanted – and often did not understand or advise them of the consequences.

Introduction of VOIP. In the mid 1990’s, international telecom options allowed for lower telecom costs through the use of VOIP. Prior to that, the cost of call delivery was prohibitive.

Is service a commodity or not?

If service is not a commodity, and truly a company differentiator, then why are companies off-shoring the service jobs to the lowest cost producer?

Consider the Contact Center Customer Satisfaction Index below for First Contact Resolution Rates. The effectiveness and customer satisfaction data differential between on-shore and off-shore centers is truly stunning.

2010 Contact Center Customer Satisfaction Index*

*Source – CFI Group

The majority of the issues associated with low off-shore customer satisfaction rates have nothing to do with attitude or “willingness to assist”. Rather, they have to do with language and the “ability to assist”. Our experience consulting with companies, who have off-shored, indicates that when short calls are backed out, the real AHT was actually 39%-105% longer than on-shore calls of the same type.

Average handle times can at first appear lower in off-shore locations. But once “short calls” are factored out, the handle times are actually much longer. In monitoring inbound calls to off-shore centers, we listen to many “short calls”. Short calls are not necessarily the reps’ fault. Short calls occur when the caller realizes they have reached an off-shore center, and simply hang up.

If you have an AVAYA switch, there is a pre-programmed “short call” report that shows the percentage of calls that were under 5 seconds in duration. You can compare your short calls for off shore, with short calls for on shore centers. If you see a significant difference, then maybe your customers are telling you they are trying to reach an on-shore center. There are other reports available from call recording systems that can report on under 30 second calls and under 60 second calls, both of which may indicate frustration with the off-shore process. Caution: If you are a large center with high call volume, don’t try to program the average ACD switch for this latter data, as it might bring your switch data reporting system to its knees!

Most companies won’t talk openly about repatriation

You’d think companies would herald the return of their contact center jobs back to the U.S. – but with the exception of a few companies like Delta, AT&T, Dell, US Airways and United, most companies won’t admit they have come back. We know of tens of thousands of jobs and many other Fortune 1000 companies that have returned. But they declined to let us use their names in this article. Wouldn’t you think they would make a big announcement? Isn’t this a customer- centric decision you would want to share with your customers?

The reasons why many companies won’t admit that they are gradually, or not-so-gradually, coming back includes:

• Mea culpa. Not wanting to admit they made the original mistake.
• Silo organizations. Decision making within a large corporation sometimes allows one division to bring back jobs, while others in the same organization want to keep their divisions off-shored. Customers would get confused if there was an announcement of bringing jobs on-shore, if some jobs remained off-shore.
• Contract Obligations and Brand Messaging. Some divisions within companies have long term contracts with poor “out clauses” with which they must contend, while other divisions can terminate at-will. Again, customers might be upset if a company announced the return of US-based service, while one or more divisions remain off-shore.

The business case for bringing jobs home

The reason many executives were originally sold on off-shoring was based on a myopic view of the wrong metrics – such as cost per call and cost per minute. We know now those are the wrong metrics of success – especially when taking into account first contact resolution (FCR). As a former consultant, I have helped many companies make the business case for bringing their call centers home- whether that is the US, or another country.

For the purpose of your analysis of whether you should consider repatriating your call center work, consider all the variables below. Note that we do not focus only on “Total Cost of Ownership”, because we are not just evaluating costs. We also need to consider quantifying the intangibles – like customer loyalty, word-of-mouth advertising, as well as risk of wallet share, lost cross-sell and customer win-back opportunities.

As many savvy customer service and marketing executives know, FCR has a direct, and an almost one-to-one correlation with the sales conversion ratio. With more than 70% of all centers attempting to sell or cross-sell on service calls, we must focus on other variables in addition to costs.

Below are the principle variables you will want to consider.

• FCR
• AHT
• % short calls (under 5 sec, under 30 or 60 sec)
• Off-shore labor rate and average rate increases Vs. new US base operating models which include work at home (at up to 20% less than the brick and mortar model)
• % Attrition
• % X-sell, conversion ratio and average ticket
• Effectiveness of acquisition and win-back programs
• Risk of share of wallet (tied to FCR)
• Customer Loyalty – quantifying word of mouth loyalty with CSAT differences

Coming home requires a new operating model. If you complete the analysis, and decide to come home, there are many other major factors to be considered. Are your brick and mortar buildings gone? Do you have the management talent to build a center? Does your company have the organizational infrastructure to manage the substantial changes to the existing operation? Will you be using an outsourcer? The same one that sent you over there? Will you be using a work at home model or a hybrid? All good questions. Fortunately, you have lots of options.

Building a Business Case for Repatriation As noted in this article, there are several variables to take into account when considering if repatriating your call center work is the right move for your business and your customers. Your financial staff can assist you in this exercise – or you can even ask Mary Murcott’s CFO for help.

Limited off-shore successes. A few of us have had some great off-shore call experiences – recent experiences with an ISP and a telecom organization come to mind. But we experienced far too many horrific failures of communication. The great experiences appear to be “one-off” and not very repeatable. I speak at conferences all over the US about repatriation – and there is general consensus that our position is correct. We really like and respect the people we have met in the off-shored centers. They are good people who want to feed their families and have a better life. If companies want to off-shore, they should determine the right kind of work to off-shore. Work with a good business case that justifies its relocation. This other experiment is over.

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“There is no better way to celebrate Labor Day than by creating new jobs in America,” said Mary Murcott, CEO of NOVO 1. “With the opening of our dream Michigan contact center we will be creating 300 new jobs over the next several years.”

NOVO 1 has invested in excess of $2 million in the call center with an emphasis on security, technology and commitment to the environment.

“West Michigan embodies an entrepreneurial spirit and public/private sector cooperation so vital to job creation in today’s marketplace,” added David Evans, Chairman and Chief Investment Officer of Glencoe Capital, LLC. “Michigan’s greatest asset and the engine of its vitally important economic recovery is the intellectual, interpersonal and initiative skills of its people, which have grown strong despite the adversity its citizens face. These qualities are what NOVO 1 saw in bringing its major operation expansion to Michigan.”

The new Holland contact center features a spacious and open design to facilitate collaboration with team leaders and agents. The center will accommodate 291 customer service representatives and 21 team lead stations. Three multi-synched training rooms feature state-of-the-art multimedia allowing for 72 training seats and 3 training instructor seats.

AT&T outfitted the facility with its telecommunications solutions, including AT&T Connect® conferencing and fully managed VPN service. The AT&T VPN solution is particularly important for NOVO 1 because it provides high levels of flexibility, reliability and security.

“Everyday, AT&T invests in its infrastructure and network to deliver stronger service and more advanced products for our customers,” said James Murray, President of AT&T Michigan. “Those investments also help promote expansion of new businesses and the creation of jobs in communities like Holland and across Michigan. We’re proud of our investments in Michigan and celebrate the opportunity to come from today’s grand opening.”

Not only does the center have state-of-the-art telecommunications equipment, but NOVO 1 also demonstrates its commitment to the environment with the center’s green features, including:
• An Active Power Rotary and UPS system .that is non-toxic, 98% efficient, with no lead acid core batteries, doesn’t require special ventilation, no spill containment required and takes up a small footprint.
• 100% recyclable and sustainable carpeting throughout the contact center. Energy Star compliant computers and monitors

In addition to its green features, security at the contact center is paramount, and NOVO 1’s Holland Contact Center has local and remote monitoring around the clock. Sensitive areas have three layers of security. There are no exposed data cables from Network Systems equipment to computers. Cables are buried in a concrete floor in under-floor conduit. Customized workstations feature a locking chase that physically secures customer service representative computers from access by agents. Only designated IT personnel have access to the computers. No CD, DVD, media or USB thumb drive intrusion is permitted. Electrical receptacles are secured so there is no uninterrupted power supply (UPS) overload.

“We’re proud to have NOVO 1 as a new member of the Chamber and West Michigan business community,” said Jane Clark, President of the Holland Area Chamber of Commerce. “Our people, location, infrastructure and spirit of cooperation make it possible for companies like this to call Holland home.

The Honorable Kurt Dykstra, Mayor of Holland added, “The City of Holland is recognized as one of the best places to live and work by Kiplinger Magazine and the Gallup organization. A pro-business environment fosters the required economic development to enhance the area’s quality of life.”

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*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

NOVO 1
Since 1987, Fort Worth, Texas-based NOVO 1, www.novo1.com, has dedicated itself to tailoring contact center solutions to support clients’ business goals in building customer relationships and growing their brands. The company delivers adaptable solutions implemented with proven processes and people for industries, such as healthcare, financial, retail, energy and logistics. Whether it’s a healthcare service, B2B logistics dispatch, or retail customer retention program, NOVO 1 provides a scalable, safe, and seamless extension to any business.

GLENCOE CAPITAL
Founded in 1993, Glencoe Capital is a private equity firm focused on lead-sponsored acquisitions and growth equity investments in lower middle-market companies. Glencoe Capital and its affiliates manage a number of private equity funds, including the Michigan Opportunities Fund and Glencoe Capital Partners III, L.P.

For more information, contact:
Jack Wilkie, NOVO 1
817-355-8909
Mobile: 515-321-5467

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