Smart businesses continually look for ways to cut costs. Budgeting is important because it enables organizations to spend more on the areas of their enterprise that they wish to emphasize, such as employee appreciation or modern equipment. Read on to find out more about outsourcing customer support and the benefits and drawbacks of working with a third-party call center if your company is thinking about making this change.
Customer service outsourcing
Companies can refocus their time and resources on other areas of the business, such as product development, content production, and sales, by outsourcing customer service.
Companies can contract an outside agency to manage a certain company function, such as existing or small business clients, rather than adding extra staff to their customer service department. The call center of a company may potentially be totally taken over by these outsourced services.
This indicates that rather than simply one or two tasks, the corporation is outsourcing all aspect of that call center’s operations.
Pros of Outsourcing a Call Center
- The price is lower
One of the main benefits of outsourcing customer support is the dramatic reduction in call center expenses. The cost of living in some foreign countries, like India, which is a popular alternative for outsourcing, is far lower than that of U.S. businesses. These nations have reduced labor costs, which saves your business money.
- Your business can gain time
It may take longer than anticipated to conduct interviews, hire, and train call center personnel. You must ensure that these individuals has the abilities to manage interpersonal communication, learn about the business and its goods, and resolve client issues. By managing staffing, an outsourced call center can alleviate some of the burden on your business. In this manner, you can redirect your attention to other important housework activities.
- It is beneficial for global growth.
Outsourced call centers are useful if your business is already global or is thinking about going global. It’s advantageous in particular if such call centers are located in other countries where you hope to someday expand your firm. As a result, there will be a local call center set up with staff members who share the same language and cultural background.
- There is more flexibility now.
Instead of being full-time workers, call center agents who are outsourced work for your business as needed. When a business has changing demands, it may easily and swiftly allocate outsourced call centers to fill those demands, knowing they won’t have to pay extra for modifications or put in extra time. Instead, these workers will just keep getting compensated for the time spent on the phone.
- There is availables customer support.
Customers now anticipate receiving assistance around-the-clock. However, paying local workers to work midnight shifts is incredibly expensive. You may simply cover 24 hours a day with an outsourced call center by hiring foreign workers to work during the day. Time zone differences will ensure that there is continuous coverage without your having to provide someone additional shifts.
- Transferring overflow calls is simple.
There are periods of the year when there are more calls than usual, such as around the holidays. It can be challenging to handle a sudden increase in customer support calls at these periods. You can effortlessly shift calls to the call center without breaking a sweat if you have an outsourced call center whose sole purpose is to handle overflow.
Cons of Outsourcing a Call Center
- There may be hurdles to communication.
If the call center is situated in a country whose primary language is different from yours, you might need to make preparations before outsourcing the call center. Language hurdles over the phone, such as differing accents or a lack of familiarity with regional lingo, may inhibit communication and detract from the customer experience.
- Employees who are outsourced typically know less about the products.
These personnel are external, thus they probably don’t know as much about your business and its goods. They’ll still receive training before they begin working, but they might just be familiar with the fundamentals and incapable of handling calls that are more sophisticated or technical.
- The level of staff collaboration is declining.
Teams in your firm probably collaborate closely, especially if they are housed in the same structure. Employees don’t usually work in the same building and don’t always have the same relationships in an outsourced call center, though. As a result, teamwork may suffer, which could stop information from spreading throughout your customer service staff.
- Less focus is placed on client satisfaction.
Outsourced call centers don’t always have the same commitment to excellent customer service because they aren’t directly connected to the company. This is not to argue that these employees don’t care about pleasing customers; rather, internal staff are more likely to seek to develop and strengthen relationships with clients in order to attract devoted, lifelong clients.
- You have no influence whatsoever over who is hired.
An organization gives up the ability to hire anyone it sees fit when it cedes management to an offshore call center. These personnel are not approved by the company first. As a result, it’s possible that some of the staff members selected by these call centers are underqualified for their jobs, but you have no influence over the choice.
The majority of external call center agents are only compensated for their productive time, and they typically work for 85% of each hour. Therefore, if an in-house agent charges $25 per hour, an outsourced agent would only cost the same firm roughly $21.25 per hour. A company would save 15% on staff wages as a result.