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Call Centre Outsourcing

Electronic copy available at: http://ssrn.com/abstract=945278
Call Center Outsourcing: Coordinating Staffing Level and Service
Quality
Z. Justin Ren Yong-Pin Zhou†
July 7, 2006
Abstract
In this paper, we study the contracting issues in an outsourcing supply chain consisting
of a user company and a call center that does outsourcing work for the user company. We
model the call center as a G/G/s queue with customer abandonment. Each call has a revenue
potential, and we model the call center's service quality by the percentage of calls resolved
(revenue realized). The call center makes two strategic decisions: how many agents to have and
how much effort to exert to achieve service quality.
We are interested in the contracts the user company can use to induce the call center to
both staff and exert effort at levels that are optimal for the outsourcing supply chain (i.e.,
chain coordination). Two commonly used contracts are analyzed first: piece-meal and payper-......


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Approximate Word Count: 11180
Approximate Pages: 45 (250 words per double-spaced page)

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