Outsourcing and Call Center Blog

30 May, 2007

Price vs. Value

Filed under: BPO,Call Center,Outsourcing,Value — shamrin @ 15:36

We’re having an ongoing discussion here in the office that I would characterise as a Price versus Value argument. The question comes down to, in the real world when customers pick an outsourcing partner, what is more important Price or Value? The price camp guys, who have a lot of experience in this business, argue that through hundreds of RFPs and thousands of discussions with prospects and customers, this business all boils down to price. Businesses want to save money, so they outsource and there isn’t significant functional differentiation between outsourcing partners to provide for some other deciding criteria.  On the other side is the value camp. We argue that customers are putting their business and careers in our hands; we are, in many cases, the only representatives that their customers will ever talk to. If this is true, making a decision based only or mainly on price is like trying to find a cheap brain surgeon, surely prospects want as good or better service than they can provide themselves at a reasonable price, not a cheap one.

I don’t know who’ll win the day on this discussion. Perhaps we’ll just have to let the market decide.

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