Outsourcing is a common business practice where a company hires another company to handle specific tasks. This approach has been around since the 1950s, but it's become more popular recently thanks to advances in IT that make outsourcing more practical and efficient.
Customer service is one of the most commonly outsourced areas. In recent years, huge international conglomerates have shared their experience contracting offshore and in-country companies for customer support. What can we learn from their experiences?
It turns out that the advantages and disadvantages of outsourcing customer service are both significant. Depending on the situation, one can be much more impactful than the other.
So, is it worth it for your company to outsource customer service? Let's take a closer look and find out.
Benefits Of Outsourcing Customer Service
Outsourcing customer service has become a popular choice for many businesses. Let's explore why this is the case. Here are the benefits you'll enjoy from outsourcing your customer service:
1. Saving resources
Running a contact center is rather expensive. A full price list includes the price of setting up the infrastructure, labor costs, possible training expenses, and overhead costs.
Outsourcing can help reduce these costs. With enough research, you can find a company that already has trained staff and the necessary equipment, offering clear pricing and reliable service.
Offshore services are especially cost-effective. If you’re lucky, you can find a company that provides quality services for a fraction of the price. While such a difference might seem suspicious, there is nothing wrong with it: different countries have different living wages.
2. Creating better coverage
Nowadays, 24/7 customer support seems like a must-have, especially for bigger companies. However, you would need to spend a lot of resources in order to encourage a trained professional to work extra hours. With offshore outsourcing, you can easily solve this problem by employing people from different time zones.
Furthermore, if your company operates on an international level, it would be easier to hire a local call center office instead of forcing an in-house team to learn a foreign language. The bigger the audience you cover, the bigger the chance you have to satisfy your customers.
At Simply Contact, we specialize in these challenges. We partner with global enterprises, SMEs, and startups to deliver simple, effective customer support solutions. Our team spread across Ukraine and internationally, offers omnichannel and multilingual support, ensuring your customers can reach you in their preferred way and language.
Let’s discuss your request and find the most profitable solution.
Managing a team can be rewarding, as it helps staff feel more connected to the company and shows areas for improvement. But it also requires a lot of time and effort. If this management doesn't directly relate to your main product, it's often better to delegate the responsibility.
Outsourcing customer service lets you maintain control over the team you hire, without the hassle of handling minor issues like new hires or additional training.
4. Focusing on the task at hand
To directly continue the previous point, if you don’t need to focus on secondary tasks, you can fully commit to the main goal. While you'll still need to communicate with and manage a remote team, it's much less time-consuming than handling an in-house team. So, if you need to concentrate on specific tasks and ensure high-quality customer service, outsourcing is a great option.
5. Potentially increasing customer satisfaction
All the benefits of outsourcing customer service mentioned above lead to a rise in customer satisfaction. Providing constant help, and support in multiple languages, and improving products through redirected resources significantly improve the user experience.
Challenges And Drawbacks Of Client Service Outsource
While we've explored the advantages of outsourcing, it's important to also consider its potential downsides:
1. Less quality control
If you want your company to have a reliable reputation, you need to make sure that it runs like a well-oiled machine. This means that each part of it has to follow certain standards. However, if a customer service department functions remotely, there is no way to make sure they follow your guideline.
Customer service is key to building your company's reputation. It can significantly influence a customer's experience. Therefore, even one poor interaction can have major consequences.
2. Challenges with brand loyalty and security risks
As mentioned before, employees who work directly for your company are generally more committed to its success. When customer service is outsourced, these teams often work for multiple companies simultaneously, making it hard for them to be fully dedicated to any single brand. This lack of loyalty can lead to indifference, a decline in work quality, and carelessness.
The most critical aspect of outsourcing customer service is the potential security risk. These employees often have access to sensitive information. Without strong loyalty to your brand, they pose a security threat.
3. Poor communication between departments
Receiving feedback from customers is a great way to enhance your company. To collect this feedback effectively, your customer service team must know the right questions to ask. Additionally, they need to understand where to send this information for it to be used effectively. Setting up this system can be quite difficult with a remote team.
4. Offshore collaboration challenges
Offshore outsourcing offers many advantages, but it can also bring unexpected challenges. While issues like language barriers and time differences might seem minor, they can significantly affect your productivity. A major concern is the variation in legal systems.
To safeguard your interests, it's important to consult with an expert in international law before entering into agreements with offshore companies.
Comparative Table of Pros and Cons
Advantages
Disadvantages
Saving resources
Less quality control
Creating better coverage
Challenges with brand loyalty and security risks
Easing staffing challenges
Poor communication between departments
Focusing on the task at hand
Offshore collaboration challenges
Potentially increasing customer satisfaction
How To Make Your Outsource Experience Better
Now that you're familiar with the benefits and drawbacks of call center outsourcing, you can weigh the risks for your company and decide if it's a good fit. Even if the risks seem high, there are strategies to make sure the benefits are greater. Here are some tips:
Hire individual professionals instead of a full team. This approach takes more time but can lead to greater loyalty and involvement from your staff. It also gives you more control over the department.
Conduct detailed background checks. To keep your information secure, it's important to verify that the people handling it are reliable. Background checks are a good starting point for building a trustworthy relationship.
Use intermediary managers. To better manage your remote team, have a dedicated person responsible for ensuring everything runs smoothly.
Utilize the latest technology. Advanced hardware and software can greatly improve quality control and feedback collection. They're also useful for additional training and enhancing overall performance.
With a focus on delivering high-quality customer support, Simply Contact tailors its services to meet the unique needs of each client. Our team of skilled professionals is dedicated to ensuring seamless operations and customer satisfaction.
Interested in exploring how outsourcing can benefit your business?
There's no one-size-fits-all approach in business. The advantages and disadvantages of outsourcing customer service we've discussed highlight this fact. Yet, outsourcing is highly adaptable. Even if you're hesitant about using a remote team, a tailored approach could work well for you.
While outsourcing does come with certain risks, they are often overshadowed by the benefits. Evaluate your company's specific needs and consider the potential savings and efficiency you could gain by bringing on an outsourced customer service team soon.
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