Challenge: An existing customer service center was located in a Tier I North American metro with nearly 5.6 million people. The company was experiencing significant turnover, ongoing wage escalation, significant increases in recurring training costs and paying high rents typical of a CBD. Their objective was to reduce labor costs, improve labor quality and recruitment, maximize business incentives and compress occupancy costs.
Strategy: In conducting a regional location analysis, five optimal communities were identified for customer support. We analyzed workforce quality and cost, evaluated direct/indirect competition, identified and negotiated business incentives, and negotiated favorable real estate lease terms.
Results: In total, we delivered overall savings of $21,000,000, which include labor savings of $7,000,000, economic incentives totaling $3,900,000 plus $2,100,000 savings in occupancy from free rent, utilities discounts and community and landlord funded capital improvements.