Product details

Product details
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Management article
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Reference no. U0710E
Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 2007

Abstract

Outsourcing after-sales services - from product repair, transportation, and warehousing to call center support and returns processing - has helped many companies slash costs and sharpen their focus on core competencies. But, as too many firms have discovered, it can also backfire loudly and put reputations at risk if executives mismanage the process. Yet despite the apparent risks, managers in a widening range of industries are exploring after-sales outsourcing. So how do you leverage the advantages of outsourcing post-sales services for both your company and customers while avoiding the pitfalls? This article provides valuable advice for what you should do before spinning off repairs, parts distribution, or customer call centers.

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Abstract

Outsourcing after-sales services - from product repair, transportation, and warehousing to call center support and returns processing - has helped many companies slash costs and sharpen their focus on core competencies. But, as too many firms have discovered, it can also backfire loudly and put reputations at risk if executives mismanage the process. Yet despite the apparent risks, managers in a widening range of industries are exploring after-sales outsourcing. So how do you leverage the advantages of outsourcing post-sales services for both your company and customers while avoiding the pitfalls? This article provides valuable advice for what you should do before spinning off repairs, parts distribution, or customer call centers.

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