contact center processes - best pratices
DESCRIPTION
Call Centers remain the crucial touch point in Customer Relationship Management (CRM). To help companies win additional customers and market share, they must give customers superior service while delivering measurable business value at low cost. Optimizing operational processes – in addition to customer delivery processes – helps call centers meet these goals. This paper describes how organizations can use this approach to achieve “Top Box” performance in customer delight while significantly reducing costs and improving enterprise competitiveness.TRANSCRIPT
viewpoint paper
Improving Contact Centers Through Operational Processes
Contact centers remain the crucial touchpoint in customer relationship management. To
help their companies win additional customers and market share, they must give customers
superior service while delivering measurable business value at low cost. Optimizing operational
processes – in addition to customer delivery processes – helps contact centers meet these
goals. This paper describes how organizations can use this approach to achieve “top box”
performance in customer delight while significantly reducing costs and improving enter-
prise competitiveness.
>> Contact Centers eds.com
Author
Brian Hughes
Manager
EDS BPO Customer Interaction
Table of Contents
Introduction 1
Operationalprocessview 1
Operationalprocesses–bestpracticeslinkage 2
Theprocesses 3
Contact center planning 3
Employee retention and growth 4
Operational management 7
Customer contact management 8
Making it happen 9
Sizeandscope 10
Challenges 10
Technologyoptionsandopportunities 10
Results 11
Successstory:leadingU.S.newspaper 12
Conclusion 12
Abouttheauthor 13
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EDS viewpoint papercontact centers
Introduction
Is your contact center performing in ways that maximize profitability and market share for your business? Sharply reducing costs
and improving employee satisfaction are important success factors. The ultimate goal, though, is to delight your customers – and
win more of them as a result. Yet in today’s environment, these goals seem to compete with each other. Employees fear layoffs,
offshoring and frozen salaries; managers face increasing client expectations with diminishing resources and budgets.
To meet their objectives, contact center organizations have focused primarily only on customer delivery processes such as handling
customer requests and initiating contacts. Through our work with clients, EDS has discovered that another area – operational
processes – demands equal attention. These processes are often twice as numerous as delivery processes, and thus have a
significant impact on the business. In fact, operational processes are the “infrastructure” that supports the business, client care
and customer delight.
Specifically, it’s crucial to ensure that the same operational processes and tools are used both within individual contact centers
and across all sites. By implementing such optimized, globally consistent delivery – and clearly measuring processes quantitatively
and qualitatively – you can achieve your goals.
Operational process view
We divide operational processes and
associated measures into four categories:
planning, retention and growth, operational
management, and customer contact man-
agement. (See Figure 1.) These categories
drive one another as a cycle.
Within each category, there are a series of
specific, linked processes with associated
tasks and steps that should be defined and
managed as a set. Investing the time to
identify the tasks and steps within each
category – and connecting or driving
performance measures from the tasks
and steps – provides the power of full
optimization.
Planning
Retention & Growth
OperationalManagement
CustomerContact
Management
Processes
Figure �. Process diagram
EDS viewpoint paper contact centers
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Operational processes – best practices linkage
Figure 2 depicts how to link operational
processes (and related customer delivery
processes) to achieve top box performance
with low cost. It also shows, at a high level,
how a successful contact center functions.
By formalizing, documenting and optimizing
operational processes through this model,
EDS has discovered the key for creating
successful contact centers that focus on
operating within budgetary allocations
while ensuring employee care. Top box
customer service is still the primary driver
for success, and the idea is that satisfied
employees satisfy their clients.
EDS has 24 patents pending for the opera-
tional support processes (shown in Figure 2
as dark blue boxes).
Figure �. Operational processes — best practices linkage
The processes shown in the model should
be a starting point for every contact center.
The model is not “one size fits all,” though.
Your organization may require additional
processes for its industry- or business-specific
needs. And there are alternatives for optimizing
processes. For example, your organization
may decide not to implement a student
intern program or an internal help desk
staffed by high performers.
CustomerDelight
Recruiting/Selection
Acclimationand
Training
Link to R&Soccurs onlywhen firststaffing CC –all other, link to WFM
ProjectManagement
ChangeManagement
Resource/Contingency
Planning
StudentIntern &
Part-time
Work ForceManagement
WorkloadPlacement
CapacityPlanning
EarnedHeadcountBudget
PerformanceEval-Scorecard
& QualityMonitoring
PerformanceManagement
Program
Career Planning and Leadership Development
Balanced LifeAccount
RecognitionAnd
Appreciation
Promotion/Job Change
Separation/Admin. Exit
Compensationand Benefits
PerformanceImprovement
Training (Agent, Supervisor, Manager, Client Partnership Model)
EmployeeSurvey
ClientContact
Management
FinancialTransactionProcessing
CustomerInquiry
Management
CustomerInteraction
Management
Quality Assurance and Management
ServiceLevel (SLA)
Management
CustomerSurvey
EscalationLegend:
Light blue box = Deliver (directly and consistent touching customers)
Dark blue box = Support (necessary operations indirectly or infrequently touching customers)
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EDS viewpoint papercontact centers
The processes
Following are detailed descriptions of the
four categories of operational processes. For
each category, we’ve included definitions of
the related processes and the benefits you
can receive by optimizing them.
Contact center planning
Based upon EDS’ experience, organizations
can realize significant cost reductions –
potentially up to 50 percent ROI – by
optimizing contact center planning. While
reducing costs, the processes listed in
Table 1 can also yield improvements in
service levels and your ability to meet
customers’ other requirements.
Table �. Contact center planning
Capacity Planning • Provides profile of organizational staffing requirements based on strategic business forecasts
• Considers staff required to offset turnover, satisfy increasing volumes and support new initiatives
• Decreases costs through effective planning • Delivers costs savings of up to 10% (based on EDS
experience and EDS/A.T. Kearney contact center optimization benchmarking)
Process name Definition Benefits
Workload Placement • Provides management of call/contact volume load balancing among contact centers
• Reduces staffing costs by balancing workloads across sites
• Delivers savings of 5%–15% (EDS’ conservative estimate)
Work Force Management • Enables matching work schedules to staffing requirements based upon workload (contact volume) and forecasting, including intraday management
• Decreases salary costs through efficient staffing • Delivers 10%–25% savings (estimate by EDS and
our partners based on use of revised business processes with supporting technologies)
Earned Headcount Budget (EHB) • Enables preapproved hiring ability and account-ability at the site level, matching headcount with volume forecasts.
• Facilitates local leaders managing appropriate agent productivity at the account level
• Illustrates whether staffing levels are appropriate (at the business level)
• Improves staffing efficiency by reducing staff approval time, ensuring sites are staffed appro-priately and allowing sites to react quickly to new client demands or add-on business
• Contributes to Work Force Management savings (see above)
Recruiting and Selection • Enables consistent recruiting and selection prac-tices, from profiling the candidate requirements to preparing for the applicant to start work
• Provides several job aids and checklists, and electronic résumé collection
• Improves quality by providing qualified candi-dates as quickly as possible
• Improves performance by reducing performance problems and attrition
Resource and Contingency Planning • Facilitates identification of staffing strategies to achieve customer expectations
• Encompasses strategic and tactical work force management
• Optimizes productivity results by developing contingencies and alternatives for staffing peaks
• Contributes to Work Force Management savings (see above)
Student Intern, Part-time Planning • Provides guidance for managing employees who do not work full time or are working for academic credit and/or experience
• Provides guidelines for skills development, supervisor attention and management for this group of employees
• Reduces salary expense by ensuring staffing peaks will be covered by co-ops and part-time agents
• Develops a pipeline of talented resources for future employment consideration
• Delivers 1%–3% savings (EDS estimate)
EDS viewpoint paper contact centers
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Employee retention and growth
Attrition rates of 40–90 percent per year
make retaining and developing staff a high
priority for most contact centers.
Table 2 lists the processes that fall within
the employee retention and growth cat-
egory and the benefits of optimizing them.
Table �. Employee retention and growth
Acclimation and Training — New Agent Essential Skills Program
• Provides collateral and skills for orienting new agents, their customers and their jobs
• Can combine with sites’ current best training practices
• Reduces attrition and improves measurable performance expectations by reducing ramp-up time for new agents
Process name Definition Benefits
Career Planning • Provides employees with management support to identify career opportunities and plan their desired career path, and leaders with an opportunity to refine leadership skills
• Facilitates coaching in identifying employees’ desired career path
• Motivates contact center employees to improve their skills, continue their education and cross-train
• Improves skills and personal growth• Promotes employee satisfaction and increases
retention• Increases retention by improving skills and
career goal motivation
Leadership Development Program (LDP) • Provides an apprenticeship program for non-supervisory employees so they can determine whether a supervisory role is a career interest
• Provides a pool of experienced candidates for supervisory roles
• Reduces attrition and improves employee satis-faction by offering high-potential employees an opportunity to learn management responsibilities with guidance
Training — Supervisor • Provides training curriculum and delivery method for acclimating and training contact center delivery employees at the supervisory level
• Continues support to further develop knowledge, skills and abilities around a set of identified requirements
• Includes training for soft skills, contact handling/ processing and systems support, as well as selective training to introduce new initiatives (systems, procedures and projects)
• Equips supervisors with performance and coaching skills needed to align agents’ skills and knowledge to organizational goals
• Reduces time required to reach performance expectations
• Increases average calls handled over time• Reduces/controls turnover
Training — Manager • Provides curriculum and delivery methods for acclimation and other training at the manager level
• Assists managers in translating broad business objectives into day-to-day targeted action that aligns with business needs and client expectations
Training — Client Partnership Model • Provides training in partnership and win-win conflict management techniques
• Enables leaders to introduce best practices to their clients, and partner with them in a con-sultative manner, so they can provide best-in-class service offerings together
• Improves customer retention and satisfaction through a proactive, consultative leadership style
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EDS viewpoint papercontact centers
Table �. Employee retention and growth (continued)
Performance Evaluation and Quality Monitoring • Ensures adherence to established processes, pro-cedures and customer service standards based on customer service level agreements and other contractual obligations
• Reduces administrative time and expenses• Satisfies customer and contractual obligations
Process name Definition Benefits
Performance Evaluation (Scorecard) • Measures employee performance based on defined performance metrics
• Facilitates leader’s ability to provide feedback, rewards and recognition, and coaching
• Ensures consistent performance in meeting client obligations
• Facilitates consistent and focused feedback to employees on performance, using industry standard metrics for contact center excellence and client SLAs
Quality Monitoring • Facilitates monitoring and evaluating work performance of agents, recording calls and data transactions, and providing feedback to agents
• Optimizes agent performance through coaching and identification of opportunities for reward and recognition
• Provides an objective, external viewpoint• Improves performance against service level
standards and customer expectations
Performance Management Program • Provides a measurement and feedback program specifically focused on agent performance
• Facilitates consistency between scorecards and agent performance management program measurements
• Rolls up monthly performance data into an annual performance report for agents
• Reduces expense and administration time through a streamlined process
• Improves employee satisfaction through consistent and focused performance management
Recognition and Appreciation • Provides structure for developing a program to recognize employees’ achievements
• Includes a database of creative ideas from all sites for activities
• Promotes achievement of business goals by recognizing desired results
• Capitalizes on sharing ideas between sites
Balanced Life Account • Provides common procedures and tools that assist employees in managing their time off
• Encourages agents to manage their own time off effectively
• Reduces attrition by offering solutions to agents who may need help managing their time
Performance Improvement • Provides guidelines to assist leaders in consistently addressing problem performance, attendance and/or misconduct by employees
• Facilitates early recognition and documentation of problems
• Provides uniform method to conduct improvement plans
EDS viewpoint paper contact centers
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Table �. Employee retention and growth (continued)
Compensation • Enables contact centers to incent and reward employees with more frequent merit and performance-based increases through a pay-for-performance strategy
• Provides various differentials for special skills, accomplishments and work schedules
• Supports discussions of wages and nonwage compensation for employees
• Can comprise base salary, bonus/incentives, stocks/bonds and benefits in the form of health/welfare, time away from work and retirement plans
• Supports focus on business goals • Increases retention and improves morale through
competitive pay practices and pay-for-performance • Ensures competitive wage structure explored• Continues to improve morale and attrition
Process name Definition Benefits
Benefits • Provides employee benefits on par with market best practices
• Allows employees and business to pay only for benefits they use
• Allows benefits for part-time employees
• Reduces expenses for employees and the business • Improves satisfaction and retention of management
and nonexempt employees
Promotion/Job Change • Offers change in job responsibilities to provide growth opportunities
• Addresses upward advancement in career ladder with increased responsibilities
• Enables employees to change jobs for variety or if they are not performing well in one area
• Ensures eligibility for promotion tied to performance
• Retains employees and helps employees find a satisfying work environment
Separation — Administrative Exit • Provides procedures and guidelines for managing voluntary or involuntary separation of an employee
• Ensures consistency in management of separations• Provides data on reasons for leaving — used to
reduce further attrition • Allows for analysis and action plans for negative
trends
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EDS viewpoint papercontact centers
Operational management
Operational management is the third
category that yields high results. Imple-
menting and maintaining standardized
Table �. Operational management
Change Management • Provides a framework, methodologies and training for managing operational and system changes
• Reduces costs by enabling contact centers to focus on and effectively manage change
• Reduces attrition through a controlled approach to managing change
Process name Definition Benefits
Project Management • Provides a formalized process and training to manage a project within the contact center
• Reduces costs through a consistent, prescribed project management methodology
Client Contract Management • Manages contracts between business and provider of services
• Can be between multiple contact centers within a business and the associated business units, or between the business and a service provider
• Develops consistency between centers that provide service to the same client
• Builds client satisfaction
Service Level Management • Establishes, manages and monitors service level measurements for customer satisfaction (e.g., 80% of calls resolved in 30 seconds)
• Ensures contractual obligations are met, facilitating long-term relationships with clients
• Improves customer satisfaction
Quality Assurance and Management • Provides a framework and structure for implementing Customer Operations Performance Center (COPC) standards and certification when required
• Improves consistency and quality through compliance with COPC standards
Employee Survey Administration • Provides a process for measuring employee engagement and satisfaction by effectively managing the Voice of the Employee survey process
• Reduces attrition and improves employee and customer satisfaction
• Facilitates development of plans to address negative responses
processes and tools in this category enables
consistency, quality and cost control.
Table 3 lists the processes that fall within
operational management and the benefits
of optimization.
EDS viewpoint paper contact centers
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Customer contact management
Customer contact management, the fourth
category of operational processes, includes
customer delivery processes.
Table �. Customer contact management
These customer contact management
processes are listed in Table 4.
Customer Interaction Management • Defines and manages customer interaction to create and enhance the desired customer experience
• Includes training on tone of voice, empathy, timeliness, etc.
• Ensures contractual obligations are met through quality scores and resolution on first contact
• Improves customer satisfaction• Reduces customer attrition
Process name Definition Benefits
Financial Transaction Processing • Uses organizational infrastructure and change management strategies to fulfill customer requests, perform research and execute required transactions
• Builds consistency between centers that service the same client
Customer Inquiry Management • Addresses working with customers to handle inquiries and service requests, ordering and problem resolution
• Supports incoming and outgoing contacts • Identifies appropriate routing strategy to eliminate
customer frustration• Ensures request resolution by performing required
services or redirecting to appropriate resources
• Provides quick resolution in a customer-focused manner
• Immediately routes contacts that need additional expertise for resolution
Escalation Process & Structure (internal) • Provides process for agents to seek advice on requests without sending all escalations to supervisors or managers
• Provides an internal help desk driven by service levels, available 100% of the time, staffed with leadership development program candidates and/or high performers
• Provides process to evaluate trends and develop plans to address deficiencies
• Reduces need for management escalation and improves customer satisfaction through efficient resolution of requests
• Facilitates tracking of complaints to offer continuous improvement opportunities
• Provides job growth opportunities for high- potential agents
Service Level Agreement (SLA) Management • Establishes, manages and monitors service level measurements for customer satisfaction (e.g., 80% of calls resolved in 30 seconds)
• Ensures contractual obligations are met, facilitating long-term relationships with clients
• Improves customer satisfaction
Customer Survey • Provides survey instruments to obtain valid opinions and fulfillment data from customers on their interaction experience
• Facilitates performance benchmarking • Enables leaders to address deficiencies and build
new offerings • Improves customer satisfaction
Customer Delight • Establishes and monitors metrics for customer satisfaction based upon performance management objectives and quality monitoring
• Facilitates quantitative and qualitative measurements related to customer satisfaction
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EDS viewpoint papercontact centers
Making it happen
EDS recommends a structured, four-stage
approach for optimizing operational
processes. (See Figure 3.) This approach
provides the flexibility for organizations
to adjust procedure tasks and steps based
upon regional laws and regulations,
contractual deliverables, or industry-/
business-specific needs. Most important,
it enables your contact center to achieve a
culture of high performance while control-
ling costs.
Figure �. Four-stage approach for contact center optimization
Prioritize the management processes that createcustomer, employee and shareholder value
Benchmark the high-priority operations
Develop gap assessment for the high-priority management processes
Define three reasonable solution alternatives that align with operations strategy and bridge the gaps
Determine the “best fit” solution fromamong the three alternatives
Build the implementation planfor the “best fit” solution
Build and present the business case
for implementation
Build a transition plan, focusing upon gaps and organizational change
management activities
Implement new processes with a strong training and
communications program
Measure change and identify barriers to success
Remove barriers to success
Ensure mandatory yearly audits to verify compliance
ObjectiveStage
DefineSolution
Implementation
ImplementSolution
Plan
Define,Measure,Analyze
Measurable Improvements inCustomer Delight, EmployeeSatisfaction and Productivity
EDS viewpoint paper contact centers
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Size and scope
All contact centers, regardless of size or
number of sites, should focus upon optimizing
the operational processes we’ve described.
The center’s relative size and complexity
do, however, help determine how long the
optimization project takes and what
resources are required.
In most cases, a single-site, single-customer,
single-language contact center can complete
the job in only three–six months and with
two–six dedicated resources. A multiple-site
center that supports many customers and
languages might need nine–12 months and
10–20 resources. In all cases, project duration
depends in part on contact center readiness –
how close the sites are to optimization and
how ready they are to embrace change.
Challenges
Challenges fall into three categories –
people, processes and technologies. The
most challenging aspect of any project is
managing people through the change.
People challenges include:
Resistance to change
Lack of sponsorship for the change
Backlash against a command-and-
control approach
Lack of compliance to change
Undefined or underdefined
accountabilities for the change
Inappropriate depth and breadth of
communications
Difficulty in obtaining commitment to
change – from the contact center senior
leadership down to the supervisor level
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•
•
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Process challenges include:
Lack of formally documented and
defined processes
Undefined or underdefined accountabilities
for the processes
Unidentified process owners and
subject-matter experts
Inability to obtain appropriate time and
attention from the process subject-
matter experts
Technology challenges include:
Lack of systems and tools to support
the processes
Lack of skills to develop appropriate
systems and tools
To manage these challenges effectively,
it’s essential to ensure that rigorous
organizational change management and
project management practices are in place
and followed.
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Technology options and opportunities
People are obliged to spend time and
money maintaining a new car engine to
ensure it a longer, more efficient life; in
the same way, companies should invest in
technology that makes it easier to maintain
and improve the redesigned processes.
Numerous software programs and vendors
support a majority of the operational
processes. Organizations need to determine
their “pain points,” the amount of support-
ing technology they can afford, and their
highest-priority items.
One of the biggest impacts can come from a
work force management system. Automating
many aspects of work force management –
such as forecasting, planning and scheduling
components (with shift allocations) –
significantly reduces manual errors and
time to reforecast.
Other technology options include quality
assurance and scorecard evaluating software,
as well as systems that support the appropri-
ate training and education environment.
Each organization should evaluate its
needs, priorities and budget allocations.
This will help determine which supporting
tools and technology to invest in first.
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EDS viewpoint papercontact centers
Results
Research documents significant quantifiable
and qualitative benefits of moving to rigorous,
standardized and optimized operational
processes. The experience of EDS and our
alliance partners shows that full optimization
of work force management and contact
center planning processes can reduce contact
center costs by 25–50 percent. We’ve also
found that high attrition (the primary burden
on almost all contact centers) can be reduced
to best-in-class numbers … if all these
operational processes are implemented
and managed.
Direct results of implementing these
processes are:
• Reduced negative (or unwanted) attrition
• Increased revenue
• Improved service levels
• Increased work force productivity
• Reduced shrinkage – or wasted time
Indirect results include:
• Targeted, skilled work force
• Improved planned attrition
• Improved client satisfaction
• Improved employee satisfaction
Figure 4 depicts the cost elements and
related objectives that drive the need for
process optimization – as well as the perfor-
mance improvement goal you can achieve
once the transformation is complete.
Figure �. Transformation to optimized operational processes
Objectives
PerformanceImprovement
Goal
Transform the contact center to ensurecustomer delight while delivering superiorbusiness value at an acceptable cost level
Trim current operationscosts
Reinvest cost savings/ ROI forimprovements to business
CostElement
Reduceattrition
Standardize practices/tools for cross-contact-center leveragability
Deliverservices
efficiently
Enable rapidcontinuous
improvement/redesignto meet customer and
business needs
EDS viewpoint paper contact centers
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Success story: leading U.S. newspaper
Recently, a leading U.S. newspaper’s
advertising contact center faced a discon-
tinuous production cycle for the placement
of employment ads in the newspaper. The
contact center’s operational processes were
breaking down due to large production cycle
spikes and crisis-management activities.
As a result, advertisements were not being
produced quickly with full quality reviews.
The newspaper kept trying to change the
operational processes to address the problems,
but with minimal effect. It was difficult to
measure success – and all parties couldn’t
agree on the best approach.
The contact center then teamed with EDS.
Based on our joint review of current
processes, we recommended process,
procedural and technology improvements
aimed at resolving the problems.
Through high-level business process
reengineering, the team provided a detailed
baseline of the current environment,
identified quick hits and made radical
recommendations for streamlining business
operations. We then implemented the
recommendations and measured their
success in the contact center environment.
The results? EDS’ services and support
helped the contact center achieve measur-
able business improvements:
Quality reviews reduced adjustments
from 1% to less than 0.3% of revenue.
Implementation of appropriate training,
organizational redesign and work force
management cut after-hours contact-
request processing from 98% each day
to less than 2% – eliminating the need
for any temporary staff.
Immediate confirmation of advertising
details, information received and a
quote for advertising space improved
dramatically – from 3–5% to 99%.
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•
•
With appropriate support processes
(including training, quality, contingency
planning, scorecard and performance
improvement processes), outbound
contact volume increased 16% without
any increase in the employee base.
Return on investment is approximately
$500,000 annually.
Conclusion
To achieve excellence and maximize
profitability, a contact center business
depends upon its people to function as a
single team focused on a common goal.
That takes consistent performance by each
individual and site. Implementing an
operational process model ensures consis-
tency and “institutionalized excellence” in
customer delight, employee satisfaction
and productivity, which in turn drive profits.
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EDS viewpoint papercontact centers
About the author
Brian Hughes
Brian Hughes manages
the process and train-
ing team in EDS CRM
Service Delivery. He
is responsible for
development, design
and deployment of
contact center procedures, processes and
best practices in workplace learning for the
customer relationship management market.
Prior to joining EDS in 2002, Brian had more
than 20 years’ experience in managing
contact centers and serving on corporate
contact center project support staffs for
two major industry leaders, JCPenney and
Alliance Data Systems. Hughes’ teams
have reduced operating costs and increased
profitability and growth while standardizing
operational activities to ensure market
competitiveness.
ContactBrian HughesManager, EDS BPO Customer Interaction Process and Training TeamA1-1E-245400 Legacy DrivePlano, Texas 75024-3199972 604 [email protected]
AboutEDS
EDS (NYSE: EDS) is a leading global technology services company delivering business
solutions to its clients. EDS founded the information technology outsourcing industry
more than 40 years ago. Today, EDS delivers a broad portfolio of information technology
and business process outsourcing services to clients in the manufacturing, financial
services, healthcare, communications, energy, transportation, and consumer and retail
industries and to governments around the world. Learn more at eds.com.
EDS and the EDS logo are registered trademarks of Electronic Data Systems Corporation. All other brand or product names are trademarks or registered marks of their respective owners. EDS is an equal opportunity employer and values the diversity of its people. Copyright © 2006 Electronic Data Systems Corporation. All rights reserved. 07/2006 5GCPH5522
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