Customer services are vital in maintaining a competitive edge in the evolving business landscape. And so, establishing a call center is crucial for sustainable customer service. But the problem arises when choosing between an in-house or an outsourced call center.
Here's what you need to know:
In-house call centers provide extensive control and customization for your customer support. On the other hand, outsourced customer support offers cost reduction and specialized expertise. To make an informed decision for your business, it's essential to understand the advantages and disadvantages of each option.
In this article, we'll delve into the details of how in-house and outsourced call centers work and discuss their pros and cons. Ultimately, we will also help you determine which options suit your needs. Let's begin!
In-House Call Centers — How They Work
With in-house call centers, the company performs customer support operations by itself. These call centers are located within the company's premises and run by its own staff. All the customer support operations are held on-site, and the call center is under the direct supervision of the enterprise.
The main advantage of establishing an in-house call center is the level of control you provide. This way, you can immediately convey the new changes in the product or service.
To set up an in-house call center, the company has to build an infrastructure and invest in the necessary tech devices, including computers, telephones, routers, etc.
Moreover, they must hire trained customer service representatives or provide training to their existing staff based on their specific objectives. These representatives serve as the frontline interface between customers and the company.
Pros of In-House Call Centers
In-house call centers offer several advantages to businesses seeking full control over customer support operations. Here are some potential benefits of in-house call centers.
Enhanced Control and Customization
In-house call centers provide enhanced control and customization over all aspects of customer interactions. This enables you to customize protocols, scripts, and training programs to fulfill your specific needs.
Respected and Reliable Team
In-house agents are more informed about your business activity. They are part of your team and understand the processes and modifications that occur over time. This leads them to pay more attention to providing consistent customer service resulting in a good customer experience.
Secured Information
Your company's information and data are contained within the company, with an in-house call center. This way, your information is 100% secured, and you don't have any insecurity that one can misuse your information.
Adaptation to Policy Changes
Company policies change with time to achieve success goals. Another major benefit of in-house call centers is that they can adapt to policy changes quickly.
Cons of In-House Call Centers
Although in-house call centers offer many advantages, they also come with some disadvantages. You should consider these before making a decision.
Costly Infrastructure
The biggest disadvantage of an in-house call center is its expensive infrastructure. Start-up costs are very expensive. You must arrange for computers, general call center software, phone lines, and PBX systems. Monthly billing is also a big part of the costs. These devices are very expensive for modern technology users.
Management and Training
Managing in-house call centers is not an easy task. To maintain a call center, you need a professional team and a knowledgeable manager. If your team is not experienced, the call center will look ineffective. Make sure you train your agents well and hire a professional and knowledgeable manager.
HR Support
Establishing an in-house human resource department is a crucial aspect of any company. However, it demands significant time and financial investment. The HR department is responsible for various tasks, including recruitment, payroll management, tax administration, and benefits coordination.
Support Unavailability
At customer support, we require 24/7 availability. You may face issues with 24/7 availability with in-house call centers, as most call centers operate during office hours.
Outsourced Call Centers — How They Work
With outsourced call centers, the enterprise hands over the customer support operations to a third party. This third-party deals with all the calls and inquiries on behalf of the enterprise.
Outsourced call centers offer various solutions depending on your requirements. These include:
The call center takes responsibility for managing all the requirements and delivering the assigned customer support operations to your customers.
Outsourced call centers come with advantages and disadvantages as well. They provide efficient and cost-effective services. They have experienced staff and modern technologies to enhance customer experience.
However, there are some important things to consider when going for an outsourced call center. You should choose a reputable service provider to ensure quality services and customer satisfaction. Effective communication between the company and the outsourced call center is crucial for consistent customer service.
Pros of Outsourced Call Centers
Outsourced call centers come with many benefits, as mentioned below.
Cost Reduction
You can use your infrastructure, monthly billing, staff training, and HR costs by using outsourced call centers. With this, you can reduce your costs resulting in more savings. Our customers notice up to 70% cost reduction when outsourcing compared to in-house call centers. Thus, you can reinvest your savings in the business to increase profit.
Ready-Trained Staff
When you choose an outsourced call center, you gain access to a team of skilled and experienced professionals who are ready to provide exceptional customer support. You do not need to invest time and capital to train new staff. This way, you can use your time in other business areas to enhance productivity.
Scalability
Scaling your business can be a challenging task, but opting for outsourced agents can simplify the process. The onboarding of outsourced agents typically occurs quickly, allowing for a shorter setup time. Additionally, outsourcing requires less maintenance compared to establishing an in-house call center.
Management of Staff and Productivity
You can enhance productivity by outsourcing the agents. The in-house call center needs a lot of maintenance and staff training. Thus, you can outsource staff and a manager and save your time. This reduces wasted hours and allows the call center to focus on productivity.
Cons of Outsourced Call Centers
Here are some disadvantages of outsourced call centers.
Lack of Knowledge About the Company
Sometimes, outsourced agents do not have sufficient knowledge about the ins and outs of your company. This is because of miscommunication, or the agents are misinformed. This causes poor customer support services. The outsourced agents should have more insights about your business to deal with this disadvantage.
Leak in Companies Data
When outsourcing agents for customer service operations, it is crucial to share your company's data with them to ensure a clear understanding of your business. However, the potential misuse of this data by agents can have significant negative consequences for your business, resulting in substantial financial losses and potential damage to your reputation. As a company with extensive security certifications, we strongly recommend selecting certified companies to safeguard your valuable data and protect your business from potential risks.
Lack of Control
Unlike in-house call centers where you have autonomy, outsourced agents may not always align perfectly with your business goals. Making changes or updates to your products or services can be time-consuming, as it requires the outsourced agents to understand and adapt to the modifications. This limited control can pose challenges in maintaining the desired level of flexibility and responsiveness in customer support operations.
Less Focus on Customer Care
When managing an in-house call center, your team must prioritize both customer satisfaction and business success. However, outsourced call centers may not have your company's best interests at heart, potentially leading to decreased productivity and inadequate customer satisfaction. To mitigate these concerns, it is recommended to partner with a reputable and dependable outsourced call center through a contractual agreement.
How to Avoid Cons of Outsourced Call Centers?
To avoid the cons of outsourced call centers:
Choose a call center with a strong market reputation.
Clearly state your requirements and establish flexible conditions in the contract.
Build strong communication channels to prevent misinformation.
Ensure ongoing communication and collaboration between your business development team and the outsourced agents.
Provide timely updates to the outsourced team in case of any changes.
Conduct periodic reviews and assessments of the call center's performance.
Implement quality assurance measures to ensure service consistency and customer satisfaction.
Maintain a collaborative relationship with the outsourced call center to promptly address any issues or concerns.
In-House vs Outsourced Call Centers
Now, we'll compare the in-house vs outsourced call center regarding cost, control, scalability, and specialized expertise.
Cost
Setting up an in-house call center requires upfront costs for infrastructure, technology, equipment, and human resource. You have to bear the expenses of recruitment, training, and managing the call center team.
While with an outsourced call center, the cost is reduced by up to 70%. There is no cost for infrastructure and team building. You pay the outsourced call center for providing the customer services operations. This fee typically covers the costs of facility management, agent salaries, training, and infrastructure.
Level of control
With in-house call centers, you have high control over customer service operations. The call center is under the premises of the enterprise, and you can train your staff yourself to meet your specific requirements.
On the other hand, you have limited control over operations with outsourced call centers. You sign an agreement with the outsourced team over specific terms and conditions.
Scalability
In-house call centers often encounter limitations due to their fixed infrastructure and staffing capacity. This can result in underutilized resources during periods of low call volumes.
Contrary to that, outsourced call centers offer increased scalability as they have more capacity to deal with high call volume. They have the ability to radially allocate staff if needed. They can also lower the number of agents if you no longer need a large team.
Specialized Expertise
With an in-house call center, you have to train your team yourself, and there are fewer chances to acquire a team with specialized expertise. The specialized expertise contributes to better customer service.
On the other hand, outsourced call centers offer specialized expertise with skilled agents. They have a vast knowledge of customer services with advanced technology and equipment. They also have efficient problem-solving and communication skills.
Making the Right Decision for Your Business
Making a decision is never easy. When it comes to choosing between in-house and outsourced call centers, there are multiple factors and specific requirements to evaluate. From the nature of your business to your goals, each factor comes into play. It is important to consider the advantages and disadvantages of both options before deciding which one suits you best.
Ask the right questions to yourself to determine your call center goals. You can start with the following:
Do you want to give your customers 24/7 customer support?
Are you trying to provide your customers with reliable and consistent customer support?
Are you trying to house a call center to attain 100% control over customer support operations?
If you want privacy, more control, and coordination, the in-house call center is the best option for you. However, it requires infrastructure, professional training, proper monitoring, and the availability of advanced technologies.
On the other hand, if you want low-budget scalability, ready-trained staff, and fast productivity, an outsourced call center suits you. It is recommended to choose an outsourced call center that is reliable and has positive customer feedback.
Frequently Asked Questions
Here are some important frequently asked questions from the customers.
What's an outsourced BPO call center?
A Business Process Outsourcing (BPO) call center involves the outsourcing of customer service operations to a third-party provider. These call centers serve as representatives of the company and charge for the services rendered on their behalf.
What are the three types of BPO models used in outsourced call centers?
The three types of BPOs models used in outsourced call centers are:
Offshore BPO: This type of BPO is located in a different country. It helps in cost reduction and access to global talent. However, you may face language and cultural difficulties.
Onshore BPO: The call center operations are outsourced in the same country as onshore BPO. This reduced language difficulties and time zone-related issues.
Nearshore BPO: It involves outsourcing the customer services operations from a nearby country, maybe from the same geographical area. It offers fewer language barriers, a similar time zone, and cost-effectiveness.
Which call center model offers cost reduction? In-house or outsourced?
The outsourced call center model offers cost reduction. It is because they have already established infrastructure and a ready-trained team. Our customers notice up to 70% cost reduction when outsourcing to us compared to in-house call centers.
Why do companies outsource call centers?
There are several factors for outsourcing. Companies may outsource for cost reduction, scalability, flexibility, and specialized expertise. Businesses may also outsource for their ability to work across time zones and languages.
In conclusion, the decision between in-house and outsourced call centers depends on various factors, including budget, expertise, etc. While in-house call centers offer customization and control, outsourced call centers provide numerous advantages such as cost reduction, ready-trained staff, scalability, and so on.
With our extensive experience and expertise in providing exceptional customer support services, we offer cost-effective solutions, trained professionals, advanced technologies, and 24/7 availability. Contact us today to leverage the benefits of outsourcing your call center operations and elevate your customer support to new heights.
Customer Acquisition
Was this article helpful for you? Share it with your friends.
