Advantages and disadvantages of outsourcing customer service

The popularity of outsourcing has increased significantly in recent years. Some companies decide to outsource their business process to add a competitive edge, some to cut expenses, others to add expertise. 

One of the most common processes that companies outsource is customer support. According to the report, the outsourced customer care industry is poised to be worth $110 billion by 2024. This means that more and more businesses will start outsourcing their customer support to an external service provider. 

The question is, whether outsourcing customer support is a good idea for your business? To answer that question we are going to look at the advantages and disadvantages of customer support outsourcing so you can get a general idea of how it works.

Advantages of customer support outsourcing

#1. Saves money

This is usually one of the primary reasons why companies decide to outsource their business processes, including customer care. Indeed, outsourcing customer services offer more advantages in terms of saving resources. Think about how much you would have to spend on setting up and running a call center. 

Even if it’s a small customer support team (3-4 agents), you would still have to pay for equipment, training, overtime, and benefits packages. With outsourced agencies, you don’t have to worry about any of that and pay only for customer support services.

#2. Better coverage

Uninterrupted customer support is essential for some businesses. However, not all businesses have the resources to provide it. Outsourcing agencies provide 24/7 coverage which means your customers will be able to reach you any time of the day. 

Moreover, outsourced contact centers usually provide better first response time because of a higher number of agents. This is important because today, customers have higher demands – they expect an instant response to their requests and a failure to provide that can result in customers’ frustration.

#3. More languages

By outsourcing your customer service to an external provider you can provide support in different languages and expand your client base without having to drain your resources. This especially applies to international businesses that have customers from all over the world. 

#4. Expertise

Outsourced customer support agencies have great expertise in client care because they only focus on one goal – to satisfy and take care of customers. All of their resources and attention goes to developing and providing the most viable customer support solutions. Their communication strategies are based on extensive experience. Startups and small businesses can’t provide such a level of customer support right away because it takes a long time to acquire. So they opt for outsourcing. 

Disadvantages of customer support outsourcing

When considering whether outsourcing your customer service is a good idea it is equally important to look at its pros and cons. While outsourcing provides the most benefits it also has some disadvantages. So what are some disadvantages of outsourced phone customer service? We are about to find out. 

#1. Less control

This is kind of obvious. Outsourcing means delegating some of your business tasks to an external provider. That means you are giving control over those tasks to another agency. You will still participate in the management process but not as much. However, professional call centers will stay in touch and advise with you to make sure everything is up to your expectations and that you are satisfied with the support they are providing for your customers. 

#2. Lack of brand loyalty

Though customer support outsourcing agencies usually would do thorough research about your company their knowledge will still be limited. This could affect the way customer support is managed. If agents lack information about your company don’t expect their service to be in line with your standards and reflect your business values. 

#3. Linguistic barriers

Outsourcing usually means your customers will be taken care of by agents from overseas. Some agents have a strong accent which will affect their communication with customers and create miscommunication. Moreover, there can be misunderstandings during interactions because of cultural differences between customers and agents.