Pros and Cons of Outsourcing Call Center

Outsourcing in business is often appealing for many reasons. It can reduce operational cost, save business resources, avoid many government regulations, and result in improved management of outsourced functions or services. Plus, it can save you from a severe headache under the right circumstances.

A company can outsource practically any element of its business, from graphic design to data entry. However, the decision is difficult to make when outsourcing involves another company directly interacting with your customers. And this is precisely the case with outsourcing a call center.

Outsourcing a Call Center

Call centers manage all kinds of customer services functions, ranging from credit cards to appliance warranties. Call center outsourcing is a practice of contracting out call center services. They outsource through a separate division, or to an outside company.

Although outsourcing your call center can cut overheads considerably, but improper service can lead to a mass exit of customers. So, contracting out in business is not a one-size-fits-all solution. 

Therefore, it is inevitable to carefully measure the pros and cons of outsourcing a call center. This is precisely what is article is all about as it will lists some of the most notable advantages and disadvantages. These points will help you decide if contraction out is the right choice for your business or not. So, without further ado, let’s get right into it.

Pros

Cons

  • Lower Costs
  • Online Speed & Outsorced Functions
  • Expansion to International Market
  • Increased Productivity
  • Flexibilities
  • Latest Technology & Better Customer Service
  • Control
  • Lack of Industry or Company Knowledge
  • Hidden Costs
  • Cultural & Language Barrier

Pros

1. Lower Costs

Businesses often face the pressure to reduce costs and contracting out some or all of the call center functions can help in this regard, but only if the company is laser-focused on the bottom line. 

Employee turnover is exceptionally high in limo call center jobs so; it will help save financial resources on the workforce, training costs, expensive technology as well as save money on capital investments such as new telephone systems and call center software. It is because a company only pays for the time its employees spend on the phone.

2. Outsourcing Call Centers Start Functions & Become Online Faster

Most call centers are outsourced to companies that already have the infrastructure in place to assist the projected call volume. Plus the negotiated contract has no capital expenditure costs, and no internal infrastructure changes are required. So, combining these facts mean that an outsourced call center can become functional and become online faster in comparison to an in-house call center.

3. Expansion to International Market

You can place your outsourcing call center virtually anywhere in the world. Nearly every nation and country on the planet have the technology and infrastructure in place to operate an outsourcing call center. It not only allows you to expand your business to the international market but also find the best combination of price and services you need to meet with the lowest risk of taking a loss from the process.

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4. Increased Productivity

If you choose to outsource your call center, it allows you to focus on other activities such as production, distribution, and sales, which consequently results in increased and improved productivity. It is even more significant if customer service is managed by employees who are managing other roles and responsibilities.

5. Flexibilities

Holidays, special promotions, bad weather, special promotions, etc. bring peaks in call volume. Call-backs offers a cost-effective way of handling these spikes, but outsourced call centers also offer to take care of additional customer service cases through these episodes of high call volume. 

Contracting out enables companies to escalate customer service support all through the peak times without having to hire, train, and then lay off workers.

6. Latest Technology & Better Customer Service

The customer experience (CX) is key to any business as it forms brand perception and determines overall business success. No company can operate without having a proficient customer support department. 

But, providing reliable customer service is no small job as telecommunications infrastructure becomes outdated and unreliable with time and its maintenance is costly, and replacement is even more so.

However, as outsourced call center brings the latest technology with it so, that the company can focus on delivering innovation in its products and services.

Cons

1. Control

Control is the biggest reason behind a company keeping its call center in-house. It is the focal point of customer services function, and losing control will negatively reflect on your business. Managing control is a difficult job, but with an in-house system, you can directly monitor everything. 

However, with outsourcing, you take a massive risk by giving your business factions in some else’s hands even if the other party is reliable and provides all the necessary transparency through technology and metrics.

2. Lack of Industry or Company Knowledge

The cost of hiring and training is high for a reason as it laces your representatives with essential knowledge of your company and industry, which is always expected by the customers. However, outsourced call centers typically do not specialize in any single sector as they manage different projects for a variety of companies.

3. Hidden Costs

There are often hidden costs that many tend to overlook when they outsource a call center. There are costs related to unforeseen legal issues and engaging a lawyer well versed in international law. Plus, if you lose customers due to poor customer service, the cost of re-acquiring lost customers can considerably affect your bottom line.

4. Cultural & Language Barrier

In case of outsourcing your call center overseas, it is highly possible that representatives in these states may lack the language fluency, cultural knowledge for effective communication. So, special consideration is mandatory when choosing an outsourcing company to make sure their representatives are trained well and can effectively communicate at an essential level.

Businesses are nothing minus their customers; so, the provision of excellent customer service is the key to clients’ retention. To outsource a call center can both improve and reduce your customer satisfaction. Thus, the decision must not be taken lightly.

So pay attention to your company’s specifics, the outsourcing companies and take these pros and cons into consideration. So, that it can be clearer whether or not outsourcing is the right path for you and your business.

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