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Don't overlook these CRO outsourcing essentials

By Camastro, Robert
Publication: Lodging Hospitality
Date: Monday, September 1 2003
HEADNOTE

HOW TECHNOLOGY ENHANCES THE BOTTOM LINE

I have been on all three sides of the outsourcing issue. As planning director at United Airlines, I was a popular target of outsourcers, given the 96 million calls in our portfolio. As a consultant with The Graycon Group, I often helped others decide if and where to outsource. And now, as president of Virtual-Agent Services, I provide those services. Here are key elements of my perspective:

* Don't assume an outsourcer can do it better or cheaper.

Vendors get their hard goods, labor and management from the same market as you. They are not afforded any magic cost advantages and also need to build a margin into their pricing. Unless their operating model is significantly different from yours, they will not be able to dazzle you with pricing. If they say they can, something is wrong.

* Learn how the vendor achieves efficiency.

Many outsourcers rely heavily on cross-utilization of equipment and people to gain efficiency and manage costs. This can have a profound impact on their ability to provide you with a quality product and any sort of personalized service.

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