What Are You Really Buying: Ratios or Results?

Martin Lehtio, Chief Operating Officer

For more than three decades, client management in the outsourced contact center industry hasn't fundamentally changed. KPIs and Ratios run it.  Ratios ensure the support needed is in place. Agents per supervisor, trainees per trainer, and so on. They largely rely on front-line leaders to shape agent performance. Those measures have influenced everything about the operating model, regardless of operators' adoption of AI and automation.  Over 35 years, this has shaped what support is in place, financial metrics, contracts, and BPO partnerships. 

But the world around that operating model has changed dramatically, now more than ever through AI agents and other automation. Customer interactions are changing, and AI is changing what can be intelligently automated: producing signals that empower the outsourcer to better understand what is impacting the customer experience at an agent level, across large sample sizes, giving the outsource providers the ability to target what and how employees are engaged from a learning perspective, using this intelligence to determine the most effective path to improved performance.  With the client's permission, it also opens pathways for providers to measure and determine the most effective ways to run those interactions at a bespoke agent level, in the interaction style that best suits each agent.  The outcome, when fully enabled with today's technology and modified operating designs, significantly improves KPI outcomes, improves agility, results in much happier employees, and produces an overall outcome that makes it possible for outsource providers to stay ahead of the increasing cognitive load in a world that is automating calls, improving self-service, and leaving the "gnarliest" calls for our human agents. 

So, I think there is a more important question we should be asking: 

What are you really looking for: control over how the work gets done, or accountability for the result? 

If the answer is the result, outsourcers should rethink how they structure partnerships. Give your provider more autonomy while holding them more accountable for the outcomes of KPIs that matter to your business, and give them room to invest in the technology, talent, tools, and operating model needed to deliver on those commitments.  

That doesn't mean you don't need people to run the business; it means the new world of outsourced contact center needs to be more than people. It needs to be the right blend of the right people and technology working together to ensure clear understanding of what is needed to improve at a bespoke level, combined with an operating delivery model that respects the new generations of human agents, how to best interact with them, and how to deliver it in an insightful and tailored way.  

“The outsourced contact center model hasn't materially changed in 35 years, and the world around it has - dramatically.  Our industry must adopt AI and other automation; we also need to deliver it in a whole new way, respecting the newer generations of agents, and in a way that allows investment to stay ahead of the complexities we'll be asked to handle” 

— Martin Lehtio, Chief Operating Officer, iQor  

The easy work is leaving. The hard work is staying

AI is resolving simple, repeatable contacts: password resets, order status, and basic billing questions. That is good news for your business, and in many cases lowers costs.  I do wonder whether it is doing it in a way the customer appreciates, a topic for another discussion. 

It also changes what is left for people. When AI handles routine work, every human contact or interaction is more likely to be the exception: the frustrated customer, the complex problem, the policy that doesn't quite fit, and often a moment that shapes customer loyalty. 

That makes the human workforce more important, not less. A global team handling increasingly complex conversations needs greater skills, sharper judgment, better support, and often more autonomy than outsourcers have traditionally provided. 

That support often requires people with better skill sets: more patience, better comprehension, better problem-solving, clearer communication, and more empathy. Even then, every agent will need more effective coaching and development to consistently deliver the outcomes our clients expect.  That coaching will not look the same for everyone. AI-driven insights can identify where employees need support, letting leaders tailor learning, coaching, and specific development to each person's challenges.  

A supervisor-to-agent ratio shows how a team is staffed. It cannot tell you whether the team is improving most effectively, whether coaching is effective, or whether customers are getting the experience you expect. 

Coaching is where the older models break down

Consider coaching. 

In a traditional model, preparing one coaching session means manually reviewing calls, pulling QA scorecards, reviewing past performance and coaching, then piecing together a coaching plan. It also assumes the leader is fully aligned with the KPIs and any emphasis the client prioritizes, and bias can shape it, even if unintended. 

In our non-AI-enabled operation, that preparation averages 68 minutes per session. Across a workforce of 38,000 agents, that adds up to more than 2 million hours a year spent preparing for coaching instead of coaching. 

Leaders often get buried in preparation and distracted by escalations, leaving too little time to invest in people. 

Technology can, and is, changing that equation. 

Automated call reviews, Automated QA scoring, and Insights analysis can surface what happens across every interaction, not just a typical small sample size. Conversation analytics can pinpoint the specific skills an employee needs to work on. AI-generated coaching plans can turn those insights into focused, personalized coaching based on individual performance needs, fully aligned not only to KPIs but also to the client's emphasis in advanced AI operating models. 

The leader's job shifts from assembling evidence to reviewing it, understanding each employee's needs, and then developing and leading a more meaningful coaching conversation, with AI as the assistant. 

As employees increasingly handle the hardest customer interactions, having the right coaching conversations matters more than ever. 

Making more room for meaningful coaching 

AI-powered coaching tools like Coach iQ show how performance insights can support more personalized employee development. By bringing relevant information together and simplifying preparation, our AI technology helps leaders focus on the skills each employee needs to strengthen and spend more time coaching the right behaviors and skills, instead of doing the administrative work required by traditional processes. To succeed in this new world, we must create a path that includes the investments in talent, AI tools, and coaches needed to deliver on these new-world customer experience expectations. 

Start with the outcome

Much of the industry's conversation is about adapting AI into existing models to assist or replace human agents, rather than moving beyond traditional operating models.  That's yesterday's model.  The bigger opportunity is outcome-based accountability, starting with the expected result and carrying through to delivery.  Call deflection and automation will continue; the remaining interactions, and how well they are handled, are what need more focus. 

Start with the result. 

What is important for your business?  Fewer interactions!  Then what?  What experiences are you expecting, and how will you measure them? Examples include: NPS, CSAT, AHT, Transfer Rates, FCR, Conversion Rate, etc.  
These aren’t new, and they still matter, maybe even more. 

I'd submit that clients also expect proof around the table stakes: security, compliance, reliability, and the ability to staff to forecast. 

I'd also submit that all clients value Flexibility, Speed to Proficiency, Consistency, Partnership, Proactiveness, and Insights on how to make their business better. The best partners do this even if it means reducing their work. 

Are these the outcomes you are looking for?   

If so, why are so many outsourcers still focused on Ratios vs. Outcomes? 

Find a partner you can hold accountable for making your business better by consistently delivering the KPI outcomes you want and expect, so the focus stays on the results you define, not how many people it takes to get it done. 

When the outcome becomes the goal, and the commercial construct reflects it, then the provider has more flexibility to bring the tools and modified operating models that ensure you get the best outcomes.  

To achieve the best outcomes for your business, providers need to be able to invest in the right human talent, leverage advanced AI and automation tools, while balancing that cost with support spans in a delivery model that ensures the best alignment and delivery on your KPIs through the best coaching, overcoming the cognitive load in our new world of more challenging interactions. 

Spans must be flexible regarding the level of human investment, combined with the AI and technology investment needed to deliver the outcomes you expect in an advanced AI operating delivery model.   

In newer partnership models, providers' investment can shift to the right mix of skilled employees, AI-powered tools, and personalized support to deliver stronger, better, faster outcomes. 

The question becomes less about whether every part of the operating structure follows a predetermined ratio and more about whether the operation consistently evolves to deliver the results the business needs. 

Reimagining the partnership

This comes down to what we want from a BPO partnership. 

If business results matter most, accountability should reflect that. Challenge the provider to perform at the top of the scorecard. Create incentives for exceeding expectations and consequences for falling short. 

Then let the provider decide how best to deliver. 

That flexibility incentivizes investment in technology that removes unnecessary work; enables AI that provides deeper performance insights; and allows advanced tools that help leaders tailor coaching and development to each employee's needs. 

“Hold me accountable for the result you're looking for. Then let me invest in the people, technology, and tools to deliver it.” 

— Martin Lehtio, Chief Operating Officer, iQor  

That's where the opportunity gets interesting. The provider isn't simply accountable for filling seats or maintaining a structure. It has a stake in the outcome and the flexibility to keep improving how it achieves it. 

The goal isn't technology for technology's sake. It's about bringing together the right people, the right technology, and the right operating decisions to deliver better employee experiences and stronger customer results. 

Focus on what you're really trying to achieve

The contact center operating model has stayed unremarkably consistent for decades. The world around it hasn't. 

AI is changing the work people handle. Customer interactions are becoming more complex, requiring greater skills, sharper judgment, and more personalized support. At the same time, technology gives providers new ways to understand performance, develop employees, and improve how work gets done. 

That doesn't mean support resources disappear tomorrow. It means we can sharpen how people, technology, and operating models work together to achieve what matters most. 

What result are you looking for? 

If the answer is better customer experiences, stronger resolution, greater retention, more revenue, or better employee performance, make those outcomes the center of the partnership. 

Hold your provider accountable for delivering them. Then give them the autonomy to invest in the people, technology, tools, and tailored support needed to get you there. 

Because ultimately, structure isn't the result. 

The result is what matters.