A Forrester Total Economic Impact™ Study Commissioned By Televerde, November 2024
While organizations have traditionally considered business process outsourcing (BPO) for operational and cost efficiencies, BPO service providers can also offer unique industry- and domain-specific expertise, uninterrupted business continuity, and outcome-oriented services.1
Televerde is a business process outsourcing company specializing in B2B sales, marketing, and customer experience solutions. It provides onshore and nearshore solutions focused on human-to-human interactions supported by data analytics and infrastructure. Its organization is built around a social mission to provide training and work opportunities to incarcerated women in the United States.
Televerde commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Televerde.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Televerde on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives of four organizations with experience using Televerde. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global technology company with $20 billion in annual revenue.
Interviewees said that prior to working with Televerde, their organizations typically had internal resources in sales development or similar roles. However, these organizations struggled with high turnover, bandwidth issues with existing resources, and changing business needs that they struggled to meet with existing staffing models.
After partnering with Televerde, the interviewees’ organizations saw improvements in operational efficiency and incremental revenue from pipeline growth and new revenue streams attributable to Televerde, and they also benefited from Televerde’s expertise and partnership.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The representative interviews and financial analysis found that a composite organization experiences benefits of $24.5 million over three years versus costs of $14.3 million, adding up to a net present value (NPV) of $10.2 million and an ROI of 71%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for organizations considering an investment in Televerde
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Televerde can have on an organization.
Interviewed Televerde stakeholders and Forrester analysts to gather data relative to Televerde.
Interviewed five representatives at four organizations using Televerde to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Televerde and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Televerde.
Televerde reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Televerde provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Elizabeth Preston
Role | Industry | Region | Revenue |
---|---|---|---|
Head of North American sales | Financial technology | Global | $50 million |
Head of global partner programs | Technology | Global | $35 billion |
Vice president of customer adoption marketing Head of North American demand gen | Software | Global | $40 billion |
Vice president of revenue operations | Industrial technology | Global | $6 billion |
Interviewees said that prior to partnering with Televerde, their organizations had internal teams supporting sales and marketing efforts, generally in an SDR role. The interviewees noted how their organizations struggled with common challenges, including:
The interviewees’ organizations searched for a solution that could:
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the five interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global technology company with $20 billion in annual revenue and 20,000 employees. It engages in B2B sales and marketing efforts with complex products and long sales cycles.
Deployment characteristics. The composite organization replaces 40 internal SDR positions with Televerde agents supporting sales teams. The deployment includes leveraging Televerde’s tech stack.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Operational efficiencies | $6,498,000 | $6,498,000 | $6,498,000 | $19,494,000 | $16,159,564 |
Btr | Incremental profit from pipeline improvements with Televerde | $1,620,000 | $2,700,000 | $2,700,000 | $7,020,000 | $5,732,682 |
Ctr | Incremental profit from new revenue sources | $540,000 | $1,350,000 | $1,350,000 | $3,240,000 | $2,620,887 |
Total benefits (risk-adjusted) | $8,658,000 | $10,548,000 | $10,548,000 | $29,754,000 | $24,513,133 | |
Evidence and data. Interviewees explained that Televerde offered operational benefits to their organizations through staffing cost efficiencies and reduced role vacancies, which directly impacted their sales pipelines and ultimately revenue.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. An organization’s realization of benefits from operational efficiencies with Televerde will depend on a variety of factors, including:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $16.2 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
A1 | Internal SDR roles reallocated to Televerde | Composite | 40 | 40 | 40 | |
A2 | Cost per SDR | Interviews | $170,000 | $170,000 | $170,000 | |
A3 | Subtotal: SDR savings | A1*A2 | $6,800,000 | $6,800,000 | $6,800,000 | |
A4 | Time to fill vacant SDR role before Televerde (months) | Interviews | 3 | 3 | 3 | |
A5 | Time to fill vacant SDR role with Televerde (months) | Interviews | 0.2 | 0.2 | 0.2 | |
A6 | Vacancies | Interviews | 5 | 5 | 5 | |
A7 | Profit impact per month of vacancy | Composite | $30,000 | $30,000 | $30,000 | |
A8 | Subtotal: Savings from reduced SDR vacancy | (A4-A5)*A6*A7 | $420,000 | $420,000 | $420,000 | |
At | Operational efficiencies | A3+A8 | $7,220,000 | $7,220,000 | $7,220,000 | |
Risk adjustment | ↓10% | |||||
Atr | Operational efficiencies (risk-adjusted) | $6,498,000 | $6,498,000 | $6,498,000 | ||
Three-year total: $19,494,000 | Three-year present value: $16,159,564 |
Evidence and data. Interviewees shared that Televerde positively impacted key segments of their organizations’ existing pipelines with measurable impacts to revenue.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. An organization’s realization of incremental profit from pipeline improvements with Televerde will depend on a variety of factors, including:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5.7 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
B1 | Revenue | Composite | $20,000,000,000 | $20,000,000,000 | $20,000,000,000 | |
B2 | Revenue increase due to pipeline improvements attributable to Televerde | Interviews | 0.06% | 0.10% | 0.10% | |
B3 | Subtotal: Incremental revenue due to pipeline improvements attributable to Televerde | B1*B2 | $12,000,000 | $20,000,000 | $20,000,000 | |
B4 | Operating margin | Composite | 15% | 15% | 15% | |
Bt | Incremental profit from pipeline improvements with Televerde | B3*B4 | $1,800,000 | $3,000,000 | $3,000,000 | |
Risk adjustment | ↓10% | |||||
Btr | Incremental profit from pipeline improvements with Televerde (risk-adjusted) | $1,620,000 | $2,700,000 | $2,700,000 | ||
Three-year total: $7,020,000 | Three-year present value: $5,732,682 |
Evidence and data. Interviewees shared that Televerde identified, pursued, and successfully closed new, previously untapped opportunities for their organizations, leading to incremental revenue.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. An organization’s realization of incremental profit from new revenue sources with Televerde will depend on a variety of factors, including:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.6 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
C1 | Revenue | B1 | $20,000,000,000 | $20,000,000,000 | $20,000,000,000 | |
C2 | Increase in revenue from net new sources attributable to Televerde | Interviews | 0.02% | 0.05% | 0.05% | |
C3 | Subtotal: Incremental revenue from net new sources attributable to Televerde | C1*C2 | $4,000,000 | $10,000,000 | $10,000,000 | |
C4 | Operating margin | Composite | 15% | 15% | 15% | |
Ct | Incremental profit from new revenue sources | C3*C4 | $600,000 | $1,500,000 | $1,500,000 | |
Risk adjustment | ↓10% | |||||
Ctr | Incremental profit from new revenue sources (risk-adjusted) | $540,000 | $1,350,000 | $1,350,000 | ||
Three-year total: $3,240,000 | Three-year present value: $2,620,887 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Televerde and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Dtr | Fees to Televerde | $0 | $5,670,000 | $5,670,000 | $5,670,000 | $17,010,000 | $14,100,451 |
Etr | Implementation and ongoing management | $154,440 | $22,422 | $22,422 | $22,422 | $221,707 | $210,201 |
Total costs (risk-adjusted) | $154,440 | $5,692,422 | $5,692,422 | $5,692,422 | $17,231,707 | $14,310,652 | |
Evidence and data. Interviewees said their organizations’ costs for Televerde were typically paid per agent and included all overhead costs, including project and team management, infrastructure, and data analytics. The cost per agent depended on the scope of work.
Pricing may vary. Contact Televerde for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The fees an organization may pay to Televerde will vary based on a variety of factors, including:
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $14.1 million.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
D1 | Televerde agents | Composite | 40 | 40 | 40 | ||
D2 | Cost per agent | Composite | $135,000 | $135,000 | $135,000 | ||
Dt | Fees to Televerde | D1*D2 | $0 | $5,400,000 | $5,400,000 | $5,400,000 | |
Risk adjustment | ↑5% | ||||||
Dtr | Fees to Televerde (risk-adjusted) | $0 | $5,670,000 | $5,670,000 | $5,670,000 | ||
Three-year total: $17,010,000 | Three-year present value: $14,100,451 |
Evidence and data. Interviewees shared that there was upfront work at the beginning of their organizations’ engagements with Televerde to support program development and training. After that, overhead requirements were very low and interviewees said Televerde was largely self-sufficient. The primary ongoing requirements were weekly meetings and quarterly business reviews.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The costs an organization experiences related to implementation and ongoing management will vary based on a variety of factors, including:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $210,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
E1 | Implementation time (weeks) | Interviews | 12 | ||||
E2 | Business employees dedicated to implementation | Composite | 15 | ||||
E3 | Percent of time dedicated to implementation | Interviews | 20% | ||||
E4 | Average fully burdened weekly salary for a business employee | Composite | $3,900 | ||||
E5 | Subtotal: Implementation | E1*E2*E3*E4 | $140,400 | ||||
E6 | Business employees dedicated to ongoing management | Composite | 0 | 2 | 2 | 2 | |
E7 | Time per week dedicated to ongoing management (hours) | Interviews | 0 | 2 | 2 | 2 | |
E8 | Average fully burdened hourly salary for a business employee | E4/40 | $98 | $98 | $98 | $98 | |
E9 | Subtotal: Ongoing management | E6*E7*E8*52 | $0 | $20,384 | $20,384 | $20,384 | |
Et | Implementation and ongoing management | E5+E9 | $140,400 | $20,384 | $20,384 | $20,384 | |
Risk adjustment | ↑10% | ||||||
Etr | Implementation and ongoing management (risk-adjusted) | $154,440 | $22,422 | $22,422 | $22,422 | ||
Three-year total: $221,707 | Three-year present value: $210,201 |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($154,440) | ($5,692,422) | ($5,692,422) | ($5,692,422) | ($17,231,707) | ($14,310,652) |
Total benefits | $0 | $8,658,000 | $10,548,000 | $10,548,000 | $29,754,000 | $24,513,133 |
Net benefits | ($154,440) | $2,965,578 | $4,855,578 | $4,855,578 | $12,522,293 | $10,202,481 |
ROI | 71% | |||||
Payback | <6 months | |||||
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of these investments to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the investment. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the investment on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the investment. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Related Forrester Research
How Digital Teams Work With Service Providers, Forrester Research, Inc., October 6, 2023.
Service Provider Shortlisting Tool, Forrester Research, Inc., September 24, 2024.
Four Critical Best Practices For First-Line Sales Manager Enablement, Forrester Research, Inc., September 26, 2024.
B2B CMOs Must Champion The Evolution To Lifecycle Revenue Marketing, Forrester Research, Inc., November 21, 2023.
1 Source: The Business Process Outsourcing Services Landscape, Q1 2024, Forrester Research, Inc., January 23, 2024.
2 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
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