Echo’s Strategy

All regulated organisations aim to offer a customer experience which delights at all points of interaction. Yet reducing cost remains the number-one reason that organisations elect to outsource. According to industry analysts Gartner, 80% of companies name cost cutting as the main reason for choosing to outsource. For an outsourcing relationship to last though, the service provider must go further than simply reducing costs. Long term success is founded on the ability to continually improve the quality of service, whilst still delivering savings.

This link between service improvement and cost saving is fundamental to Echo’s strategy. Long-term relationships simply do not happen without delivering both - and Echo’s business strategy is entirely predicated on establishing long-term partnerships with our customers.

A number of important priorities support this strategy. Priorities which are designed to focus our business activities and provide consistent targets across each of our service centres. They are as follows:

Enabling our customers to be best placed to succeed under regulated conditions
Ensuring the regulatory targets to which we make a contribution are on track and accurately measured and reported. For instance, helping prepare our water industry clients to be in the best possible position to adapt to new pressures and changes at the next price review, understanding the implications and preparing for the possibilities and opportunities.
Using technology to enable business improvement and cost savings
Not technology for technology’s sake. Investments must be justified against the value they bring to our customer’s organisational requirements and vision.

Whilst Echo is able to boast significant uptake of the latest call centre, debt recovery and billing software technology innovations across our sites, these are integrated after thorough investigation and with our customer’s approval of the business case for change.
Delivering shared services benefits wherever possible
Shared services deliver benefits in two ways: firstly, through the effective use of common resources across more than one contract, such as Echo’s central Belfast based service provided for each of Northern Ireland’s county water requirements; secondly, through making best use of the synergies across Echo’s multiple sites, including the extensive provision of shared central functions, such as HR, finance, communications and marketing.

Operating multiple service centres in separate locations presents some challenges, but it has not meant that entirely separate business operations need to be run. One of the advantages of running multiple centres is that they can each draw on the skills and experience of the other centres. Although the commercial models for each customer relationship may be different, the operating models are designed to ensure that there is maximum alignment, with best practice consistently integrated across the business.
Continue to make strategic use of cost effective off-shore opportunities
Off-shoring gets a bad press, in many respects rightly so. Off-shored call centres are notorious for their lack of cultural empathy, conflicting management priorities and consequential reduction in UK regional investment. However, there are business functions for which the addition of off-shore specialism provides an excellent cost saving and a long term resource improvement.

In particular, software development skills and certain back office processing functions can benefit enormously from the increased scalability and subject expertise provided by off-shore specialists. It will continue to be a priority for Echo’s business to ensure that we make appropriate best use of these resources.
Respond to new business opportunities with commercial flexibility and creativity, adding value through innovation beyond contracted terms
Each of Echo's service centres has a different commercial model. The ability to offer unparalleled commercial flexibility in this way enables our customers to maximise their control of the service provision. In practice this has extended to commercial models which include: joint ventures with our clients; working as a direct outsource contractor; as a service provider within an alliance of companies; and, as a central 'hosted' service provider.

The different commercial models are a more obvious example of how the drive to innovate and add value beyond customary service contracts is manifested. The RapidXtra User Group also provides a good practical example. This forum is a unique opportunity for our clients to influence the strategic direction of RapidXtra's software development.
Integrating risk/reward and gain-sharing elements into contracts
Increasingly organisations are demanding more safeguards against poor performance by service providers. Echo has been a strong proponent of commercial terms which recognise the importance of safeguarding the customer, whilst also released shared rewards for service improvements.

Historically the Importance of this priority has been evidenced by a consistent focus on reducing the cost to serve for our customers, whilst providing measurable improvements to service. This balance is achieved through a holistic set of measures including independent qualitative assessments, looking at things like innovation, culture and approach, but also targeting specific objectives, such as:
  • Increasing first time call resolution
  • Increasing the use of appropriate automation
  • Increasing the availability of relevant customer data at point of contact
  • Widening the channels of contact available to customers
  • Investing in people and management development
Build financial models complementary to our customer’s strategies, forecasts and priorities
This strategic priority is in two parts: firstly, is the importance of using savings and efficiencies to invest in better trained, more capable and more efficient people, delivering a greater range of services; secondly, it is an increasing strength for us to differentiate ourselves by the sheer depth of understanding of the unique conditions in regulated industry.

Working with our clients we aim to provide a structure and management which contributes and complements the priorities of the organisation. The UK water industry in particular presents unique challenges in terms of priorities, opportunities and pressures. With different forms of ownership, ambitious targets for things like capital investment, profit levels and the sensitivity around the level of water charges, UK water companies are faced with managing a often conflicting balance of objectives.