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10 Introduction The key to a companys success is good customer service Regardless of whichever 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 1 With the advent of CRMs outsourcing customer service needs became more appealing Outsourcing is becoming one of the most rapidly growing industries According to the National Association of Software and Service Firms the global outsourcing market has grown from 96 billion in 1998 to 151 billion in 2000 India is the leading offshore outsourcing country where they dominate 80 to 90 percent of the total offshore development revenue worldwide 2 The aim of this paper is to present an in depth look at outsourcing customer service to India In particular the paper will discuss the need for outsourcing customer service outsourcing to India and the benefits and risks associated with outsourcing a companys CRM A case study will follow showing how outsourcing can be used to increase customer retention 20 The Need for Outsourcing Customer Service 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 3 This strategic move is decided by higher management when they realize that the handling of these operations by another party
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