As the next breed of global contact centers will have to figure out how to keep costs low while raising quality and demonstrating customer benefit, it is likely that traditional forms of outsourcing will no longer suffice as a winning strategy on their own. Take a read of this new ebook to find out what trends are happening and what it will mean for the call center of the future.

1. making
the call
Why customers and
staff will embrace the
next outsourcing wave
Jim Bradley

2. 2 | making the call
Introduction
Contact centers have been at the forefront of new and innovative employment models for over a decade.
They are often subjected to cost–cutting and outsourcing, and they continue to suffer among the highest
voluntary attrition rates in the service sector.
But, this is nothing compared to what’s on its way.
There are a number of unstoppable demographic and social changes that are rocking the worldwide
workforce. Employers of all shapes and sizes will have to get to grips with these changes, and contact
centers are among them.
Traditional forms of outsourcing will no longer suffice as a winning strategy on their own. Instead, the next
breed of global contact centers will have to figure out how to keep costs low while raising quality and
demonstrating increased customer benefit. They’ll need to do this for the following reasons:
1. High quality is the only way to justify the cost: Contact centers are expensive and cumbersome. If
they’re not building customer loyalty, they’re eroding it, and businesses just won’t be able to justify the
costs in increasingly competitive markets if the return isn’t there.
2. It’s your reputation on the line: Many brands already know the damage that poorly delivered,
outsourced service can wreak. Contact centers are requiring increasingly complex training and product
knowledge to deliver great service, and there is a limit to the number of markets that can provide great
service with low cost. Traditional outsourcing won’t work for every product and every brand.
The future contact center has to be smarter, more diverse and more flexible. It’s not about innovation—
it will be about survival. With attrition rates higher than virtually any other job category in the service
sector, contact centers are ripe for innovation—and the way forward is going to critically challenge many
organizations and their management styles.

3. 3 | making the call
We’re getting older. Today’s global workforce is
undergoing an unprecedented transition—companies everywhere are
faced with the need to recruit and retain talent from an aging workforce.
In all countries, people are living longer past two decades, but in recent years, has For the contact center environment,
and working longer. People over the flattened and is now declining. this means three things:
age of 50 constitute a larger part of the 1. The fresh-faced candidate who saw
overall population, and a larger part of the Since December 2007, the number of contact center jobs as a step into the
global workforce. prime-aged workers in the U.S. labor force workforce and a way to support their
has declined by 0.7%, while the number of studies is becoming more scarce;
Since 1980, the percentage of workers aged workers over the age of 55 has increased by 2. Contact center management will need to
50 and above in the U.S. has risen from 26% 7.6%. In fact, the number of workers aged 55 attract and retain a more diverse mix of
of the population to 37%. And by 2050, and older is higher now than any time since generations in their workforce—and this
the share of workers aged 55 and older is 1948 and they are expected to comprise 24% will mean some big changes in operating
expected to reach 19%, up from just over of the workforce by 2018. style; and
14% in 2002. In the European Union, the 3. As the broader workforce struggles to fill
number of people over the age of 60 will More than 78 million Baby Boomers are
increasing talent gaps for all industries
climb by nearly 50% by 2050. being followed by a far smaller cohort of only
and role types, less desirable work will
45 million Gen X workers, so there will be a
become, well, even less desirable. Filling
From a demographic standpoint, “prime- shrinking pool of prime-aged workers to fill
the seats in contact centers is going to
aged” workers are 25 to 54 years old. This the gaps.
get harder and new strategies to attract
group has grown significantly over the
workers will be needed.

4. 4 | making the call
There are 7 billion of us, but not
enough skilled workers. As populations age,
they also decline, and this compounds recruitment difficulties.
As Figure 1 shows on the following page, For contact centers, which already have a Increasing populations in developing
there are simply too few children being born long history of outsourcing to places like nations will instead have their own equally
in developed countries to supply the skilled India, it may appear that they have nothing perverse outcomes. Southeast Asia will likely
labor that employers need. The ‘replacement’ to worry about. Yet, higher fertility rates in see its workforce grow by 58% within the next
fertility rate is around 2.1 children per developing countries do not balance out the 30 years. The developing world will likely
woman, and most countries in the developed shortage in developed countries, because have a growing surplus of unskilled labor at a
world are well below this. Instead, across developing countries simply do not have the point in time when the demand for unskilled
much of the world we now face an imbalance educational infrastructure to convert these labor is actually declining.
between the supply and demand of skilled newborns into skilled workers.
labor, which employers will have to change Contact center workers require a unique and
tact to confront. Even if there were a sudden, miraculous growing set of skills to deliver the kind of
rise in fertility rates, the effects wouldn’t service that customers expect and demand.
South Korea’s fertility rate is less than half be felt for decades. Babies born today will Turning to unskilled labor pools in other
the replacement rate, 1.08; Japan’s is take a minimum of 22 years before they enter parts of the world simply will not solve these
slightly higher at 1.26. It’s only in developing the workforce. problems, and instead may compound them
countries where fertility rates are at abundant and create new problems as well.
levels—for instance, Nigeria at 4.91, and
Guatemala at 3.47.

5. 5 | making the call
Figure 1:
Global demographic
and social trends
The current European Union (EU) nations face Russia: simultaneous high unemployment
shrinking labor pools:* and skills shortage.
• The number of people aged 20–59 years will Baltic Region: skills shortage and
decrease from 208.7M in 2000 to 151.2M in 2050. simultaneous high unemployment.
• During the same period, the number of people
over the age of 60 will climb from 82.1M to 125.1M. China: rapid labor force growth and a
skills shortage. Southeast Asia will see
its workforce grow by 58% within the
next 30 years.
Japan: predicted to be hit hard by labor
shortages, and is expected to experience the
squeeze first, of all developed nations.
India: the number of Australia: expects a shortage of 500,000
Central and South America: high fertility working-age people will workers by 2020.
rates and high levels of unemployment, in East Africa (i.e., Eritrea): increase to 335 million
addition to northern migration. skilled workers shortage. by 2030, a number almost
as large as the total
Sub-Saharan Africa: labor working-age population New Zealand: already has shortages
South Africa: skilled labor shortage; unskilled shortage predominantly in of the EU and the U.S. of skilled workers in local building and
labor surplus. agriculture. combined in 2000.* manufacturing industries. (Local PR).
* Source: EU Information—Demographic and Social Trends Issue Paper. Europe’s Changing Demography Constraints and Bottlenecks. Fact Sheet: Living Happily Ever After.
The Economic Implications of Aging Societies. Watson Wyatt Worldwide & World Economic Forum. No data provided.

6. 6 | making the call
We’re more generationally diversE. For the first time,
employers are challenged by the phenomenon of four distinct generations coming
together in the workplace simultaneously. Each generation has its own unique attitude
towards work, and those diverse approaches often result in intergenerational conflict.
For contact center environments, this are willing to jump from job to job to
The four generations in today’s workforce
generational mix provides distinct challenges pursue growth and opportunity. They
and requires transgenerational solutions. can be cynical of, and frustrated by,
A quick snapshot of some of the key, tradition and hierarchy. One-third of
33% Generation X
defining features of the generations Gen X comprises working parents
16% Generation Y
demonstrates this: looking for balance. 2004
7% Silent generation
1. Older generations are retiring later and 3. Generation Y and Z (or Millennials) show a 44% baby boomers
looking for flexible work to improve their high tolerance to diversity and difference.
lifestyle. Most Baby Boomers (80%) will Ambitious and demanding, they question
continue to work as contractors or free everything and need constant feedback
agents part-time, or for part of the year. at work because they get it in every other
33% Generation X
They are typically loyal, strong performers aspect of their lives. If they don’t see a
37% Generation Y
and have higher retention rates than good reason for working late or making 2012
3% Silent generation
younger employees. a long commute, they usually won’t do it.
27% baby boomers
Loyalty to one company is not their strong
2. Generation X are the best-educated
suit, although they are generally very loyal
generation in the workforce today (40%
to their profession and the people they
have a college or university degree) and Source: Bureau of Labor Statistics
work with.

7. 7 | making the call
We’re more generationally diverse. continued
Generational differences may pose for flexible ways to stay in the workforce, And there’s another generation waiting in
challenges for employers who want the contact center will no longer be an the wings to make its debut—and they’re
optimal performance from their entire environment that lends itself to a one-size- likely to make the biggest impression in the
workforce. Yet the diversity of experience fits-all approach. Generations will have to largest numbers in workplaces like contact
and knowledge offered by four distinct work together to solve problems and deliver centers. So, now is the time to get to grips
generational mindsets can provide tangible consistency in service—and management will with managing the generations differently
benefits, if managed well. have to help them find ways to do this. and to get the best results. This type of
diversity isn’t going to go away, it’s only
With four generations in the one workplace, Through our own research, when we look going to increase.
all working on one (similar) hierarchical level, across the generations we see a picture
and completing the same tasks—but perhaps emerging of a workforce that is more
in very different ways—contact centers have a dynamic and flexible. We see people seeking
unique challenge on a large scale. greater engagement with work and wanting
to reach new levels of skill. They have a more
With Gen X workers often looking for short- global approach to work; where certain jobs
term payoffs with immediate feedback and can be performed in many different parts of
rewards, Millennials looking for ‘meaning’ the world.
in their work and older generations looking

8. 8 | making the call
We want to be ‘free agents’. Throughout the past decade, a strong
trend has emerged towards building more flexible, project-based workforces. Beginning
long before the current recession, this is a trend that was made possible by modern
technology allowing people to connect and work together from wherever they are.
One of the most important workforce trends The Kelly Services Employment Trends Growth of free agents in U.S. population
of the past two decades has been the rise of Survey undertaken in early 2011 shows that FREE AGENTS 2008EIGHT
the new breed of free agents—consultants, the percentage of the U.S. population that 44% 2011ELEVE
freelancers and contractors. describes themselves as free agents has 26%
2011
virtually doubled from 26% in 2008 to 44% DIRECTLY EMPLOYED
Free agents are not traditional “9 to 5” 56%
2008
in 2011.
employees working for one employer. They 74%
are untethered, independent professionals
Free agents are a growing part of the
or consultants, temporary or contract Source: Kelly® Employment Trends Survey, 2011
workforce and they offer benefits to
employees, and they move from project to
employers that traditional workforces do
project, location to location. They span all
not. They allow employers to expand and
ages, professions, incomes, and educational
contract their workforce quickly according Free agents are generally better educated
levels, and they are interested in working for
to changing needs. So, contact centers that and more highly skilled than the general
themselves. Free agents prioritize freedom
and flexibility over the security of traditional adopt technology solutions, which enable population, so attracting them to contact
employment models, and they are always them to tap into at-home and distribtuted center roles requires removal of the strict
keeping an eye out for more interesting or workers (free agents) can significantly reduce time-and-place barriers that currently exist
rewarding assignments that afford the best their labor costs. around workforce planning models.
work–life balance.

9. About the Author
JIM BRADLEY is Senior Vice President, Centers of Excellence (CoE), Project
Practices for Kelly Services, Inc. He joined Kelly Services in 1996 as vice
president of the Service department and later added IT Field Development to
his role. In 1999, he was promoted to senior vice president, Administration, until
2008 when he became head of Kelly Outsourcing and Consulting (KellyOCG)
global operations. Prior to joining Kelly Services, Jim served as director of
financial services for Automatic Data Processing in Roseland, New Jersey. He also worked as a
product manager for Software Plus in Rutherford, New Jersey. He holds a bachelor’s degree in
Finance from Fordham University in New York.
About Kellyconnect
KellyConnect is a global service line of Kelly Services®, a U.S.-based Fortune 500 company and
a global industry leader in workforce solutions. KellyConnect® is an innovative, comprehensive
approach to contact center workforce solutions. The KellyConnect program provides full service
staffing and management solutions for a variety of contact center environments including customer
service, sales, market research, collections, and help desks.
About Kelly
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions.
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