Introduction...............................................................................1Chapter 1: Cost Management.................................................................3Chapter 2: Traffic Management..............................................................16Chapter 3: Guidelines for Planning a Call-Center Infrastructure............................42Chapter 4: Methodology to Map and Analyze the Traffic in a Call Center.....................59Chapter 5: Planning a Transport Structure..................................................108Chapter 6: Cases...........................................................................121Chapter 7: GSM Gateways....................................................................132Chapter 8: Billing Systems.................................................................136Chapter 9: Billing Auditing................................................................146Chapter 10: Dialers........................................................................151Chapter 11: Calculations...................................................................179Chapter 12: Closing Words..................................................................205Bibliography...............................................................................207

Chapter One

Cost Management

The management of telecom in a call center has as its main goal to guarantee connectivity between the users and the attendance sites with the desired quality of service for the least cost possible. Therefore, cost management is a fundamental part of managing telecom in call centers. Traditionally, there are four main general strategies to keep the telecom cost down:

? Pressure the service providers and hardware vendors, trying to guarantee low prices—for example, bargaining and negotiating hard.

? Enhance the internal control over usage of the services available—for example, by using billing systems.

? Increase the control over the service providers to make sure that the organization is paying only for what was really used at the agreed price for each service and is not being overcharged—for example, by using telephone bills auditing.

? Carefully manage traffic and network design, emphasizing aspects such as standardization and simplification of the technical environments.

Considering that telecom usually represents a significant chunk of the operational cost of a typical call-center operation, the telecom manager has to be cost conscious and has to understand that part of his or her job is to find ways to get more for less from the infrastructure that he or she is responsible for. It is not only matter of making things work but making things work for less.

In summary, it is fundamental to know the actual expenditures of your organization for telecommunications, including telco expenditures, hardware, and services. It is also important to be able to separate the expenditures by identifying not only the services themselves but also things such as penalties for overdue payments, penalties for not achieving minimum-committed traffic, and one-time installation services.

A very common misleading factor when identifying the monthly expenditures of telecom is that very often the telco invoice (bill) encompasses calls from several months (in some countries there is a legal limitation on the time to charge for the calls); therefore, when comparing volumes and costs you should make sure that you separate the calls correctly by time span. In addition, you may also have situations in which the billing cycles of the several providers are not consistent—that means in a given month you may be paying for calls made from different periods. This fact also can generate some distortion when identifying the monthly volume and cost.

Here it is worth mentioning that when verifying the expenditures you should not use as reference the values actually charged but the values that were supposed to be charged. This is necessary because, if you don't, you risk creating the wrong reference for the real expenses. It happens because telcos are well known for their charging mistakes (for and against their clients), and sometimes these mistakes can be very misleading regards having a clear view about how much and on what your organization spends on telecom.

You can generally divide the telecom costs of a call center into three groups:

? Hardware costs

? Personnel costs

? Transport costs

1.1 The hardware costs

The hardware costs encompass all costs associated with the hardware deployed by the call center. Usually, these costs are partially hidden, because some equipment is bought and not rented or leased. This hides the total expenditure and cost of the hardware because part of this cost isn't expended and accounted for monthly.

The telecom manager must keep a careful inventory of the resources used, in which the monthly costs of each device is clearly identified, including the rent/leasing, maintenance, and support costs. When the equipment is owned by the organization, it still has a "cost," which is represented by the total paid (capital invested) or financed monthly by a given rate—usually the WACC (Weighted Average Cost of Capital) of the organization. Knowing exactly how much your hardware costs monthly is very important not only to define your operating baseline properly but also because there is a delicate balance act between investment in hardware and ability to manage traffic.

1.2 The personnel costs

The personnel costs encompass the costs associated with the people directly involved in managing the telecom infrastructure. It includes regular employees, contractors, and expenses for providers of services such as external NOC (Network Operation Center), help desk, network security, and mantainnance.

This cost has to be very well understood, because, as in the cost of the hardware, there is a trade-off between the cost of the control (and the people involved to execute it) and the gains attainable by controlling. The cost of the people may not be an expensive item in some countries; however, it is always important to know it well and to do the math.

1.3 The transport costs

One important aspect of the infrastructure costs, which very often is overlooked, is the transport cost. These costs encompass all the costs involved in transporting the calls between the call center and the user (or vice versa). There are two main reasons these costs very often are not carefully verified:

1) The call-center services very often are outsourced, and in these situations, usually the company contracting the service pays the bills directly, which obscures the visibility of this particular cost item. This situation is common in both inbound and outbound operations.

2) Other very typical situation is when the caller pays for the call (totally or partially). This scenario also tends to obscure the responsibility of the call-center operator in the transport costs.

Although both scenarios are common, keeping track of the transport costs is very important even when you don't actually pay for them directly. Firstly, the transport costs usually amounts to a substantive part of the infrastructure costs (regardless of who foots the bill) and the infrastructure manager usually is the person best able to analyze and optimize this cost.

Therefore, having a clear understanding of your transport costs enables you to act to reduce it.

1.4 Negotiating with service providers

The intensity and frequency of the negotiation processes is the distinct difference between the way telecom is managed in a typical large organization and the way it is in a large call center. Telecom costs in a call center are basic inputs and as such have to be carefully managed.

Therefore, negotiation with service providers is an ongoing process in a large call-center operation. Negotiation skills are assumed to be one of the basic skills of the typical call-center telecom manager.

Even if you have ongoing contracts with a lengthy renewal time, you probably will always have some sort of negotiation going on—new links being added, new tariffs being offered, new clients coming in with their links—which in time will be transferred to you.

Because of this permanent interaction with service providers, telecom managers have to keep track of their organizations' needs very carefully. Therefore, it is absolutely crucial to have a very good, current view of the traffic in terms of volumes, interest, and profile. Spreadsheets like the one shown below have to be updated often and known by heart:

The negotiation processes must take into consideration several key factors that are typically driven by the makeup and culture of the organization. As an example, you must evaluate the flexibility and willingness of the organization to absorb new clients and new functions. Some organizations are willing to sell services and then hurry up to expand their infrastructure to support the new clients/services. Others prefer to sell only if there is capacity available and then expand the infrastructure to keep spare capacity and then sell again.

From the above commentary it is clear that some sort of strategy and policy is required to deal with service providers. The need for strategy grows as the size and geographical dispersion of the organization grows. The strategy and policy should address at least the following points:

? Clear statement of global approach to service providers. Typical examples are:

* One global provider (or one provider by country or region)

* Providers must have local capabilities and infrastructure in areas of operation

* Best use of local providers in their areas of operation

* Local or a universal language capability in regions of the globe

* Finance capabilities, currency requirements, and payment terms

* Provisioning and sales-cycle timeframes

? Clear internal understanding and communication regarding functions per type of device, capacity-planning standards, and QoS requirements

? Position the ideal topology based on flow analysis and geographical realities driven by political, organizational, and other regional influences

? Position at least two transport strategies. This might have to be regionally based.

? Define specific contractual elements up front. These could include:

* Penalties and contract cancellation conditions

* Minimum-committed volumes

* Accounts payable and dispute arrangements

* SLA (Service Level Agreement) components

* Technology refresh options

* Help-desk performance metrics

? CPE (Customer Premises Equipment) ownership and management, these might be dictated by regional regulations

? Standard price lists—this is often desirable in decentralized organizations and has many advantages in the areas of cost appropriation and financial planning. This price averaging is often only possible in regional settings, and even though it might provide a simplified operational structure, it is inevitable that some operational entities will pay a price penalty. That said, the advantages to central planning, financial visibility, and overall simplicity in a large multinational call center are significant.

It is our experience that frequently the people executing the negotiation with the service providers do so without proper preparation. It's is also very common to find people negotiating telco contracts whose view is purely economic without any deep understanding of the traffic volumes, interest, and profile. This lack of preparedness usually generates two very typical approaches:

? "Kick the telco approach"—there is no complication; we quote with all providers and just choose the cheaper ones.

? "Minimalist approach"—there is no need for detailed specification; just ask them for their price list.

These views, although not entirely wrong and may work for a smaller infrastructure, do not take in to consideration a fundamental factor of this process: when negotiating with service providers for a large call center, you are not only comparing the prices per service but also comparing the prices of the different transport strategies (deployment of POPS [Points of Presence] for example) and balancing between the tariffs and the minimum-committed volumes.

Examples:

? Comparing the prices against the cost of building a network of POPs to collect or distribute the traffic; the cost of the spoken minute has to be compared not only against the other service providers' prices but also with the cost to transport them through a private network.

? Mobile traffic: the cost of the spoken-minute fix-mobile cannot be compared only with the fix-trunks' providers but also with the alternative of providing dedicated mobile trunks (or using GSM gateways) to transport mobile traffic.

Therefore, it is crucial to accurately map the traffic, understanding perfectly from where to where the traffic flows, the volumes, the quality requirements, and the available transport strategies.

The fact that we are not just comparing the costs per type of call but also comparing costs per transport strategy is a fundamental point and does make a difference when negotiating with telcos. This is because, besides the possibility of comparing different transport strategies, the only other alternative is the direct comparison between the same services. In this situation each telco usually knows the limits of the others, and the chances for driving down costs are limited (usually associated with the volumes). Therefore there is less room for discounts.

Although large call centers may have several telecom providers, usually they concentrate their business in a few of them (usually between two and three providers are responsible for 80 percent of all telecom expenditures).

It is an important aspect to be considered; we often hear comments like "We don't want to have several providers." The basic fact is that from the point of view of getting better prices it is always convenient to allow all providers to offer their services, even when they are not able to cover all your sites or offer good prices for all services (here the routing capability shows its importance).

Ideally, the logical approach should be: "Provider, quote your best price for the services you offer where you have coverage." Of course, having the ability to route traffic makes all the difference in the effectiveness of this approach.

Here it is important to emphasize that adopting the logic of allowing all potential providers to present their best prices where they have coverage (with no obligation to quote all services for all points of presence) does not necessarily mean contracting in this way. Eventually, you can do a quotation following this strategy, and subsequently, the providers may be short-listed and confronted with the best prices available in each area.

Although common, contracting only one service provider may not be advisable. Having at least two main providers may be better for technical and commercial reasons. First, there is the fact that from a relationship point of view, it is always good to create a situation in which a service provider knows that there is a concurrent active contract to which the organization can easily turn for its requirements.

Another very common argument against segmenting quotations is that such segmentation tends to reduce volumes and consequently tends to reduce the discounts offered. This line of thinking has several problems:

1) The first, and most obvious, is the fact that quoting with several providers doesn't eliminate the possibility of the providers that are able to offer all services in all areas to do so, eventually giving you alternative costs per volume contracted.

2) This line of thinking doesn't take in consideration the already mentioned fact that we have to compare not only service providers and services but also transport strategies; one transport strategy may be applicable only in some areas.

3) And, finally and maybe the more problematic, is the simple fact that we may have potential providers whose prices are very good but limited to some specific geographical area or specific types of services (mobile calls, for example). Depending on the percentage of our services that are these types and within these areas even if we pay a lot more for the other services outside those areas (not covered areas), the savings could still be substantial. In addition, we always can route the calls to avoid using the expensive types of services by redirecting them to providers whose prices are more reasonable.

The quote should be structured in such a way that the service provider must present a defined price that clearly indicates:

? Cost per minute per type of call

? Charging granularity

? Monthly fee for trunk subscription (if any)

? Minimum-committed volume (if any)

? Costs for other services (for example, installation)

? Periodicity and duration of the contract (typically monthly and not above thirty-six months)

Eventually, different minimum-committed volumes imply a different set of tariffs. If this is the case, it has to be clearly stated. The clear indication of all these items enables visibility and transparency when managing and comparing the contract.

(Continues...)

Excerpted from Telecom Management for Call Centersby Luiz Augusto de Carvalho Olavo Alves Jr. Copyright © 2011 by Luiz Augusto de Carvalho and Olavo Alves Jr.. Excerpted by permission of iUniverse, Inc.. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

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compliance with a legal obligation; and/or
vital interests of the data subject; and/or
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where we need to protect your interests (or someone else’s interests);
where it is needed in the public interest or for official purposes.
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COLLECTION:
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We may collect and use special categories of personal data as required in the carrying out of obligations and exercising specific rights of us or the data subject in the field of employment. This may include information relating to matters such as health, racial origin, religious belief and offences or alleged offences.

Personal data may be collected from you during the selection process (for example via your application form and CV) and during your employment (including holiday forms, expense claims, performance reviews, any disciplinary or grievance processes), or from third parties, including referees, health service providers, background check providers.

USE:
Personal data of our people will be used for HR administration and management, both in respect of the selection of people to work for us (including suitability, eligibility and/or fitness to work), and those who do work for us, to include learning and development, disciplinary and security (of people, offices and data) requirements, providing and liaising with benefits providers, business management and planning (including accounting and auditing), paying you and dealing with tax and NI deductions, assessing and deciding on salary reviews and compensation, conducting performance reviews and managing performance, dealing with legal disputes involving you or others, preventing fraud, monitoring your use of our information and communications systems, ensuring compliance with our policies, and equal opportunities monitoring.

We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances:

In performance of a contract with you; and/or
compliance with a legal obligation; and/or
vital interests of the data subject; and/or
where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests.
We may also use your personal data in the following situations, which are likely to be less common:

where we need to protect your interests (or someone else’s interests);
where it is needed in the public interest or for official purposes.
In respect of all disclosures of personal data, we will only share the personal information which is necessary for the particular purpose for which it is provided, or where we have another legitimate interest in doing so, and we will ensure that the personal data is appropriately protected.

In respect of special categories of personal data, we may process this in the following circumstances:

in limited circumstances with your explicit written consent; and/or
where we need to carry out our legal obligations and in line with our policies; and/or
where it is needed in the public interest (such as for equal opportunities monitoring or in relation to our occupational pension scheme), and in line with our policies; and/or
where it is needed to assess your working capacity on health grounds, subject to appropriate confidentiality safeguards.
Less commonly, we may process this type of information where it is needed in relation to legal claims or where it is needed to protect your (or someone else’s) interests and you are not capable of giving your consent, or where you have already made the information public. We may also process such information about our people (or former people) in the course of our legitimate business activities with the appropriate safeguards.

The special categories of personal data may be used in the following ways:

in relation to leaves of absence, to comply with employment and other laws;
in relation to your physical or mental health, or disability status, to ensure your health and safety in the workplace and to assess your fitness to work, to monitor, manage and administer benefits and absences;
in relation to your race, national or ethnic origin, religious, philosophical or moral beliefs, or your sexual life or sexual orientation, to ensure meaningful equal opportunity monitoring and reporting.
DISCLOSURE:
Personal data may be transferred to service providers who support the operation of our business (such as payroll service providers), to other third parties reasonably necessary in the conduct of our business (including insurers, professional advisors, regulators). These third parties may be acting as processor, or controller of personal data in their own right.

RETENTION PERIOD:
We will keep personal data only for as long as is necessary to fulfil the purposes for which we collected it, including for the purposes of satisfying any legal, accounting or reporting requirements. We will normally keep personal data of applicants who we do not employ for six months after we receive it.

We will keep personal data of employees throughout your employment and normally for a minimum of six years after your employment ends.

Changes to your personal data
It is very important that the personal information that we hold about you is accurate and current. Please tell us if your personal information changes during your relationship with us.

Data Security
We have put in place measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those of our people and other third parties who have a business need to know. They will only process your personal data on our instructions and where they have agreed to treat the information confidentially and to keep it secure. We have put in place procedures to deal with any suspected data security breach and will notify you and the ICO of a suspected breach where we are legally required to do so.

Where we store your personal data
We principally store data, both electronically and on file, at our office.

Personal data may be transferred outside of the EEA by processors acting on our behalf. For transfers to countries not considered adequate by the EC, we will ensure that personal data is adequately protected, as required by the GDPR. This would include by use of the Standard Contractual Clauses adopted by the EC to protect personal data.

Your rights
Under certain circumstances, you have the right by law to request:

access to your personal data. This enables you to ask to receive a copy of the personal data that we hold about you and to check that we are lawfully processing it.
correction of the personal data that we hold about you.
erasure of your personal data.
object to processing of your personal data where we are relying on our legitimate interest and there is something about your particular situation which makes you want to object to processing on this ground. You also have the right to object where we are processing your personal information for direct marketing purposes.
restriction of processing of your personal data.
transfer of your personal data to another party.
Links from our website
Our website may, from time to time, contain links to and from the websites of third parties that we permit to make such links. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. We recommend that you check these policies before you submit any personal data to these websites.

CHANGES TO THIS PRIVACY POLICY
Any changes we may make to our privacy policy in the future will be posted on our website, so please ensure that you are viewing the correct version.

Please contact us if you have any questions, comments or requests regarding this Privacy Policy.

Last amended May 2021.

Telecom Management For Call Centers A Practical Guide

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Telecom Management for Call Centers

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