Business Challenge
A leading contact center with headcount in excess of 2,000 and operations in 3 cities was facing intense pricing pressure.
Solution Implemented
Activity Based Costing analysis to enable the client to get a 360 degree view of its service offering and costs structure, including :
- Cost / minute of operations given billing on a per minute rate.
- Created internal costs for each component such as training cost per recruit / level, cost of hr support / employee, etc.
Our Impact
- Margin improvement: 5% cost reduction opportunities were identified within 3 months of the implementation.
- Improved execution through better integration with plans: Availability of objective data for each department / profit center enabled in an objective linkage between incentives and strategy thus having a direct impact on business performance.
- Better capital management: Better monitoring of capacity utilization resulted in more revenue for every $ of capital invested.
- Better planning and forecasting: Identification and understanding of costs and revenue drivers resulted in a more accurate planning and forecasting process.
