1. No category

CONTENTS
As an Academic Science
1) Presently : Korea Research Foundation (2012)
SC1007, sub-division of marketing
2) Truely : multi-disciplinary science.
→ Need marketing, MIS, HRM, IT, accounting, Social, etc.
3) Direction : Independent classification.
-3-
Research Trends : Theory-Driven, Conceptual, Metrics
[1] Theoretical Studies
Sujeong Choi, KiJu (KJ) Cheong, Richard A. Feinberg,
"(2012), Moderating effects of supervisor support, monetary rewards,
and career paths on the relationship between job burnout and turnover intentions
in the context of call centers", Managing Service Quality, Vol. 22 Iss: 5 pp. 492-515
SJ Gwak, KJ Cheong, SJ Choi, A Study on the Effects of the Job Burnout on the
Customer Orientation, Job Satisfaction, and Turnover Intention of Customer
Service Representatives at Customer Centers Management Research Vol 39, No3, 2010. 06.
Hyun Chul Park et al.(2012), "A Study on Determinants of Organizational Commitment,
Service Quality, and Turnover Intention of Customer Service Representatives
in a Call center - Based on Social Exchange Theory and Internal Marketing,
Marketing Mgt. Research, 17(4), 23-54
-4-
Research Trends : Theory-Driven, Conceptual, Metrics
[2] Conceptual Studies
Jon Anton, (2000) "The past, present and future of customer access centers",
International Journal of Service Industry Management,
Vol. 11 Iss: 2, pp.120 - 130.
K. J. Cheong (2012) “Major Issues and Challenges of Korean Customer Center Industry,”
Journal of Customer Center Services, Vol. 2, No1, September.
[3] Relational Studies of Internal Matrices
Richard A. Feinberg, Ik-Suk Kim and Leigh Hokama, Ko de Ruyter and Cherie Keen
"Operational determinants of caller satisfaction in the call center,
"International Journal of Service Industry Management, Vol. 11 No. 2, 2000, pp. 131-141.
-5-
Promising Research Area
1) Turnover (Attrition), Leadership,
2) Classification of Customer Center
KPI by call flow direction and operation type
3) SERVICE QUALITY of Customer Centers
4) Relationships among Internal Matrix
5) Upgrade of e-lang C Formula:
Call & Staff Forecasting
-6-
Perspective:Narrow Business Service (KIET, 2004)
[SIC]
Information Processing
and Related Business (72)
Narrow Business –supporting Industry
Research Development (73)
Business
Service (M)
Business Consulting (7422)
Specialized Science
& Technology
Services (74)
Market & Opinion Research
(7421)
HR-support Business (75121)
Industry-support
Service (75)
Telemarketing Services (75942)
-7-
Standard Industry Classification(SIC;CIRC, 2007)
Call center Services (75942)
Self-Operating(759421)
App. 3,300
Outsourcing (759422)
App. 100
(759423 )
App. 100
tech-support
Training/Consulting. (759424)
App. 50
Telemarketing Services
Callcenter
(
7
-8-
and
5
,
Telemarketing
9
9
Services
1
)
Estimated Market Size-Inbound only (CIRC, 2013)
1.7 Bill. USD$
140,000
1.1 Bill. USD$
120,000
Annual Growth Rate: 8%
100,000
80,000
60,000
Slow Growth
40,000
Decreased application,
Domesticated Market
20,000
0
2002
2003
2004
2005
2006
2007
Unit : (Billion USD$)
-9-
2008
2013
Estimated CC Distribution by Industry (CIRC, 2011)
Centered around telcom, financial, insurance,
spread into Public, hospitals, government sectors and others.
10.40%
12.00%
7.60%
10.00%
8.00%
6.00%
4.00%
2.00%
9.80% 9.60%
4.20%
4.00%
3.60%
0.40%
0.60%
7.60%
7.00%
4.90% 4.70%
2.50%
2.10%
0.80%
0.00%
- 10 -
1.70%
5.30%
4.20%
2.80%
1.30%
1.30%
0.80%
CC Distribution by Regions
around 70~80% are located in the Seoul area, but spreading into regions
with ample agent supply and incentives
provide incentives as it is clean, non-polluted,
knowledge-generating business and job creating industry.
<Seat Numbers by Major Regions>
Gwangju
42 companies
52 centers
8,500 seats
Daegu
Daejeon
Busan
Jeonnam
Jeju
45 centers
93 centers
60 centers
9 centers
6 centers
8,135 seats
12,171 seats
15,000 seats
1,300 seats
800 seats
source : 2012 Prime Economy
- 11 -
Need to recognize value from CC
Valued low despite of its contribution to enhancing QOL and creating
wealth to companies and nation.
Type
Contributing Value
Correction
Job Creation (3.5%, Industrial workers)
Customer or
CitizenBased
National/
corporate
development
Support market oriented industry(VOC)
Develop consumer oriented P&S (VOC)
Better Political
Care/
Recognize
The Value
Secure Competitive adv. thru CS/delight
Improve communication with customers
Improving
QOL
Serve as problem resolvement channel
Offer Ideas to Improve SQL
- 12 -
Empathize
Predicament
Of agents
Need to Use Unified Terminology
ISSUE : Different Terminology Use by Major Institutions
Insttution
Situation
Korea Standard
Industry
Classification
ASCS
(Academic Society)
KMAC
Terminogy
Call center
Key
Inbound/outbout centers
CIRC
Customer center
KCCA
Contact center
Customer respect & center phylosophy
Customer Contact is key
Revised “telemarketing services”to “call center and telemarketing
services” from public hearings in 2007
Revised “Academic Society of Korean Call Center Services” to
“Academic Society of Korean Customer Center Services”in 2011
Confusion from varying use of Terminology
- 13 -
Perspectives from CIRC-KOREA
Call Center
Not valid due to Increasing mobile and internet channels, decreasing
telephone channel usage,
Telemarketing
Damaged Image from the market due to “push” and “deceptive
marketing”conducts.
Contact Center
Vendor-oriented rather than customer oriented. Customers are more
than simple channel. Somewhat dis-regarding customers
CIRC – Korea suggest to adopt the terminology of “Customer Center”reflecting
Customer–Respect Phylosophy, Recommendations from the ASCS And Market
Trends to the industry.
- 14 -
How do you call your operation?
41% (159)
Call Center
8% (32)
Contact Center
44% (172)
Customer Center
1% (5)
TeleMarketing Center
3% (11)
Others
0%
10%
20%
30%
40%
50%
CIRC (2012.01.20~2012.03.07)
Market Categorization, Method, & Size(Unit: USD Billion $)
Categorization :
self-operating, tech-support, outsourcing, training & consulting
Method of Calculation:
(1) Sales based,
(2) Budget Based.
▶self - operating
Total Budget (1.7 bil), tech – support (0.17 bil.),
outsourcing (0.6 bil.)
Large 3,000 center x 10% x 10 bil. =
app. 0.3 bil.
Medium 3,000 centers x 30% x 5 bil. = app. 0.5 bil.
Small 3,000 centers x 60% x 0.5 bil. = app. 0.9 bil.
▶ telemarketing - outbound : app. over a few hundreds bil.
▶ Training : 33 million, Consulting: (300 million.)
- 16 -
Urgency of enacting CC Industry Promotion Act
Essential to support CC Industry from Taxes due to large Job Creation & Regional
development Effect, No Law exist so far.
Laws of Other Industry
Ranationale
Examples
Industry Characteristics
• Pro –environmnet , No pollution
• Insect Industry Promotion Actt
• Knowledge concentration
• International conference Promotition Act
• contribute to IT development
• Fisherry Promotion Act
Regional Economy Revitalization
• Fishing Industry Promotion Act
• Promote relocation to locals
Increase local taxes and
• Horse Industry Promotion Act
improve financial soundness
• Socialy-disadvatageous support Act
Equal Employment
• No discrimination by sex,
• ..
physicaldisadvantage, age
If Rational and request from
Industry, support is necessary
• Nonfacial customer interaction
- 17 -
Draft of CC Industry Promotion Act
Art 1 : Purpose
Art 2: Definition of terminologies
Art 3 : Obligation of the government,
Art 5 : Deginating and instaliing the organization in charge of CC Industry
Art 6 : Planning Principles of CC Industry
Art 7 : Support for CC EXPO/Conference,
Art 8 :: Building Infra for Promoting & supporting CC Industry
Art 9 : iBuilding CC related Infra and setting guideline of operation
Art 10 : Training and educating Professional CC HRM
Art 11 : Prromoting gIobal cooperation, Act 12;: e-CC building and infra
Art 13: : Promoting Exchange of CC Industry Information
Art 14 & 15 : Degiignating and supporting major CC city
Art 16 : Finaicial Soiurces for executting the Acts
Art 17: : Relations with Other Laws
- 18 -
Majority located around Seoul: 80%
Confronting Issues
Benefits for relocation
• Seriously low pool of agents

relatively high rent
• Low popularity of CC as a job
• 3D(dirty, difficulty, dangerous) =>
Utilization
of ICT

CSI (clean, Safe, Interesting)
• High turnover rates
• Low concern/supports from metro
government
• Lack of CC training institutions,
colleges
Planned relocation of government
offices & public companies
- 19 -
Reduction
of
Operation
Cost
Stable
supply
of
agents

Resolved distance issues
with ICT (Phillipine, India)
Real time monitoring and
processing operational
situations and statistics
Subsidies from local
governments

Low rent => Low cost
Low HRM cost

Low competition for HRM


Possible to create training
programs with local
educational institutions
Proposed Measures
1. Escape from 3D Image => Strengthen promotion
2. Terminology Unification => Compare Logics and evaluate
3. Develop scientific methods for estimating market size
4. Legislate CC industry Promotion law
5. Diffuse CC cluster to local and overseas
6. Partnering with APCCAL for A-P market Entry
- 20 -
Expected Results from taking Masures
1. Fair competition of outsourcing industry
from price to service quality
2. Governmental supports for the industry growth
3. Stable supply of quality agents
4. Reduced operational expenses of CC industry
- 21 -
Q&A