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Outsourcing - An Inside Look The key to a companys success is good customer service Regardless of which industry one is a part of customer care is of utmost importance An increasing number of organizations are realizing that with growing competition new technological innovations and constantly improving services and products consumers are being pulled in different directions It is vital to ensure that customer loyalty programs are an integral part of an organization Acquiring new customers is important but holding on to existing customers is crucial After all if existing clients are satisfied they will help in acquiring new ones by spreading the news of the outstanding customer services To serve customers better many companies have adopted a Customer Relationship Management CRM system These systems integrate people process and technology in order to maximize a companys relationship with all their customers American Society for Quality 1 With the advent of CRMs companies have been looks outside the company boundaries for aid in such a demanding customer service field More precisely the companies are looking to tender their CRM responsibilities to an external party in some form of a contract This is commonly referred as outsourcing and it is becoming one of the most rapidly growing industries The Need for Outsourcing Outsourcing is a companys decision to hire an outside firm to handle the companys computer operations network operations and IT function to a vendor for a specified time Lankford 2 This strategic move is decided by higher management when they realize that the handling of these operations by another party will reduce costs and expenses Customer Relationship Management CRM is a major component that many companies are looking to outsource due to the components large scale and the importance Customer service is a large component of CRM When a company is heavily involved in keeping long-term relationships with their customers they are in effect providing research into the types of customers that company is attracting
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