Particularly since about 2005, there has been a great deal of interest in the South African call centre- industry. Regretfully, in some instances, would-be call centre entrepreneurs have not taken heed of sound advice; many have started call centres and invested vast amounts of capital only to “crash and burn”. This presentation was compiled by Rod Jones in March 2009 and it was shown for the first time at a breakfast seminar in Cape Town on 24 March 2009 hosted by CallingTheCape. The main message of this presentation is … “Yes… Call centres can be viable business opportunities for entrepreneurs …. But … there are many provisos and conditions.” Also read the white paper called “So.. You want to start a call centre?” on theC3Africa website at http://www.c3africa.com/group/consulting/call-centre-start-up

1. The Way to Market
So…. You want to
start a Call Centre?
Think before you leap into it!
Monday, April 27, 2009

2. ABOUT THIS PRESENTATION
Particularly since about 2005, there has been a great deal of interest in
the South African call centre- industry.
Regretfully, in some instances, would-be call centre entrepreneurs have
not taken heed of sound advice; many have started call centres and
invested vast amounts of capital only to “crash and burn”.
This presentation was compiled by Rod Jones in March 2009 and it was
shown for the first time at a breakfast seminar in Cape Town on 24 March
2009 hosted by CallingTheCape.
The main message of this presentation is …
“Yes… Call centres can be viable business opportunities for
entrepreneurs …. But … there are many provisos and conditions.”
Also read the white paper called “So.. You want to start a call centre?” on
theC3Africa website at http://www.c3africa.com/group/consulting/call-centre-
start-up

3. Why?
Are there Opportunities in the
South African Contact Centre
and Business Process
Outsourcing (BPO) Sector?

4. Yes!
Over 50% of the
1,300+ private sector
call centres in South
Africa have under 50
seats
The <50 seat sector
continues to grow at
a tremendous pace
But!

5. Large numbers of <50 seat call
centres fail…
Because they…
 Lack Expertise
• Operational Management
• Marketing and Sales Expertise
• Financial Expertise
• Technical Ability
 Lack Experience
• All of the above
 Over-Investment in Technology
 Lack Credibility
 Lack Capital
• Start-up and Operational Funding

6. The Most Certain Cause of Failure …..
NO CONTRACTS

7. What do outsourcers look for
when evaluating an Outsource
Services Provider?
Key Selection Criteria Importance
Guarantee of specific Service Levels 91%
Proven track record in BPO 90%
Specialisation in BPO 90%
Maintaining close contact 88%
Has vertical industry experience 79%
Cost saving guarantees 78%
Ongoing training 77%
No conflicting contracts 74%
Commitment to R&D 67%
Centre of Excellence 65%
Effective transition HR strategy 64% Source:
Compatible corporate culture 60%

8. Ten Steps to Setting Up
a Successful Call Centre
1: Gather as much information as you can
Books – Internet – White Papers – Vendors – Trade Association
(BPeSA / CallingTheCape) – Dti – Other contact centres
2: Study and Learn
Attend formal training – Subscribe to on-line training
3: Develop your Strategic Business Plan
Know what you want to achieve … and Why.
Concentrate on your SALES STRATEGIES
4: Develop your Operating Model
People – Processes – Technologies – Management – Finance - Sales
5: Develop your Financial Model
Be Ultra Conservative – Recognise what you can LOSE

9. Ten Steps to Setting Up a Successful Call Centre
6: Carry out a Critical Skills, Experience & Resource
Gap Analysis
- What MUST you have to succeed ?
7: Conclude Alliances & Partnerships
- Create partnerships with existing local and successful operations
- Develop true „skills, knowledge and experience transfer‟ relationships
8: Review your Business Plan with your Strategic
Partners
- They must feel comfortable to create a Win-Win relationship
9: Secure your Finance
- No… You probably will NOT get a contract first!
- Budget for a long, slow Return on Investment
10: Now Build & Manage your Call Centre
Start Small – Avoid Capex – Keep Costs to a Minimum – Burn the
„midnight oil‟ - Keep Learning – Deliver Great Service

10. Avoiding Call
Centre “Crash-
and-Burn”
1: Join your Regional/National Association
- Listen to their advice
- ONLY deal with suppliers and vendors who are members
2: Avoid ALL „Risk Only‟ Contracts
- Wait „till you can afford to lose money if things go wrong
3: Local Business is Good Business
- There‟s really good money to be made locally
4: Hire the Best People
-Inexperienced/Low-Cost staff will be your downfall!
(Wait „till you are a large and profitable company to train new recruits)
5: Cash-Flow is King
- Finance expansion from profits – NOT more debt!
6: Consider a Franchise
- But ONLY one endorsed by BPeSA or a Regional Association

11. The Most Important
Tip of All…
South African National Standards
Business Process Outsourcing &
Offshoring Operations
SANS 990-1/2/3:2008
Part 1: Outbound Contact Centre Operations
Part 2: Inbound Contact Centre Operations
Part 3: Back Office Processing Operations
Best Practice – Clear Definitions
Will become Vital to have Compliance
www.contactindustryhub.co.za go to „Resources/BPO Standards

12. www.contactindustryhub.co.za

13. FOR MORE INFORMATION
The Way to Market
Contact Centre Industry Specialists
The C3Africa Group provides a comprehensive range of
professional services from consulting to set up new call centres
through to call centre optimisation audits, skills development and
staff training. Visit www.c3africa.com
Also visit our website at
www.contactindustryhub.co.za for FREE white
papers and articles on how to start a call centre
Monday, April 27, 2009