Outsourcing of CRM

Outsourcing Customer Facing CRM: Boon or Bane?



The roots of this research are traceable to the post-dot com period when U.S. based firms leveraged the investments in the communication infrastructure and outsourced several business processes such as customer-facing and backoffice activities to vendors all over the globe. While the rationale for this trend was the potential for cost savings, businesses experienced higher order effects that were perhaps as damaging (click here for a prominent story). In our research (published in Management Science and Journal of the Academy of Marketing Science), we test the performance effects of CRM outsourcing and show that the benefits of outsourcing CRM are not always guaranteed. In fact, the performance consequences are often negative because of significant agency costs and decline in customer satisfaction.


The full text of the conceptual piece is here and the empirical piece is here




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