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Pros and Cons of Outsourcing Customer Service

Outsourcing customer service has its pros and cons and we will walk you through them. Also, be sure to check out what are the best call center phone system features.

Outsourcing customer service is hiring a third party to handle the communication with your customers. Simply put, it means that they are handling your outbound or inbound calls with the customers.

Many companies believe that outsourcing means hiring overseas call centers to handle your calls. But, there are many domestic companies that can do exactly the same. It all comes down to fulfilling the needs of your business. The call center you hire should understand what are your needs and how to make your customers happy. Otherwise, you could lose clients over this. This is why it is crucial to do thorough research and hire the call center that fits your needs the best.

Pros and cons of outsourcing customer service

Any business decision has its advantages, but there are also disadvantages. And outsourcing customer service is no different. You just have to weigh in and decide whether it is useful for your business or not.

Pros of outsourcing

1. Lower costs

In-house customer service employees are overall expensive. You have to hire them, train them, pay them a salary and all the other benefits. If you outsource your customer service, you will get the same result for significantly less money. Maybe the end result would be even better because call center agents usually have a lot more experience and training, and therefore, know how to better handle various situations with customers.

2. More coverage

If you have in-house customer service agents, you are bound by their working hours. If they work over the weekend, you will have to pay them overtime and that is if they agree on working over the weekend. But, if you outsource customer service, you will have a chance to offer customer support in the “unusual” hours like in the evening, or during the weekend. This way you can be at the service for your customers all the time, 24/7, while at the same time be better than your competitors. It’s a win-win situation.

3. Different languages

Imagine how hard it is to hire a customer service agent that is good at what they do, and at the same time speaks several languages. It is rather hard. If you have a diverse customer base, and you are doing business in more than one country, then you probably need customer support in different languages.

This is something you can’t accomplish by having in-house customer service. But call centers usually offer customer services in multiple languages. This perk is something that can make your customers appreciate you even more. And since customer support is extremely important when it comes to customer satisfaction, you can assume that your competitors can’t be too happy about it.

frustrated man yelling at a phone

4. Shorter response time

Even if you opt for in-house customer service, you can’t really hire that many employees. And that means, your customers will probably have to wait a little bit longer before they get a free agent to talk to. We all know that customers don’t like to wait.

Call centers usually have a large number of agents which are available. That way, your customers will wait way less before they reach an available agent. Additionally, call centers have the latest technology which can help in providing better customer service. And this technology is usually expensive for companies to get themselves.

Cons of outsourcing

1. Security and privacy – They might be at risk, especially if you hire an overseas call center. They don’t undergo the same checks as the domestic call centers. So, in that sense, confidential information might be less secure.

2. Lack of knowledge about the company – The agents might not know much about your company and its values. The agents often work for multiple clients, so they might not be as dedicated or passionate about your brand as an in-house customer service agent would be.

3. Cultural barriers – When you hire an overseas call center, you should be aware that their agents do not have enough knowledge about your culture, which might create additional problems in communication with the customers.

4. The contracts can be rigid – The call centers often offer rigid contracts that are not flexible and they often require a long-term obligation. Also, it can be hard to get legal protection if you hire an overseas call center.

5. Instability – A call center company could easily go out of business, leaving you hanging. It is crucial that you have a plan in this situation.