57% of businesses turn to outsourcing, but is it the right option for you? It
isn't the right option for every business, so in this post, the team from https://supportyourapp.com/call-center-outsourcing/
explains more about the pros and cons so you can make an informed decision.
The Pros
Let's start with the advantages of taking this step.
Reducing Costs
One of the main benefits is that it gives you access to the
global talent pool. This means you can work with a team in a country where the
cost of living is significantly lower, meaning the wage bill is too high.
Secondly, you save because you only pay for the capacity you
use. You don't have to employ consultants to cover sick or annual leave or in
case the center gets busy. The provider takes care of all of that for you.
Thirdly, you save on the overheads of managing a team like:
- Recruitment and onboarding
- Training
- Equipment
- Office space
- Utilities
- Maintenance
Access to Expertise and Better Efficiency
Your customers hire you for your expertise in your field.
Call center service providers offer the same level of expertise when it comes
to customer support. They not only know how to deal with any kind of client
effectively, but they use efficient processes. They train their consultants to
have empathy and improve their problem-solving skills, thereby delivering
higher levels of service.
Scalability
One significant downside to running an in-house team is that
you may need different numbers of consultants at other times. You'll need to up
your staff complement during peak periods, but what do you do with those
employees during off-peak times?
Furthermore, recruitment, onboarding, and training can take
weeks or months if you can find suitable candidates. If you need to upscale
quickly, you can't afford to waste this kind of time.
When dealing with a third-party provider, you'll find that
they usually have excess capacity for just this kind of occasion. It's,
therefore, far easier to scale up your team when necessary.
24/7 Support
We don't live in a world where regular business hours always
apply anymore. Your customers may not find your office hours convenient, or
they may require support when your company is closed for the day. Not offering
such support can cause a drop in customer satisfaction that your company can
ill afford.
Multilingual Support
Is your target market multilingual, or are you expanding
into a new region? Having consultants who can speak local languages fluently
can improve customer satisfaction by making it easier for customers to explain
themselves. It also reduces the chances of misunderstandings due to language
barriers.
Focus on Core Activities
Who answers customer calls at the moment in your office? Is
it anyone who hears the phone ring? If so, those calls could negatively impact
productivity and employee satisfaction. Each time a call comes in, it
interrupts your employee's train of thought and this reduces productivity.
Depending on the nature of the query, it might also frustrate
your employee. Imagine, for example, a
software developer trying to debug your app and being interrupted by a customer
wanting to know what operating system your software runs on.
Letting a third-party team handle the basic queries and
refer to you for the more complex ones gives you time to focus on your core
activities.
Access to Advanced Technology
Most businesses invest in technology directly related to
their core operations. That doesn't leave much room in the budget for advanced
call center software. The same is true of third-party providers, but they focus
on customer support software and hardware.
By partnering with them, you get the best of both worlds
without the expense.
Reduced Employee Management Costs
Running a call center is time-consuming and challenging. You
not only need to ensure that it's adequately staffed at all times but also that
your consultants have things to do during off-peak periods.
This means hiring someone to manage the center and workflows
and spending more on HR and training.
The Cons
Before you jump on the outsourcing bandwagon, here are some
things to consider.
Loss of Control
You'll need to relinquish a fair amount of control when
handing over customer interactions. The provider decides who to hire, how to train
them, and everything to do with the systems that they use.
While you can opt for a company that allows you to monitor
the quality of the interactions, your overall control is limited. Which makes
it essential to carefully research any partner you're considering.
You must also include clear service level agreements and
find a way to monitor interactions. A reputable company will allow you to do so
and provide you with several ways to access reports so that you can be part of
the quality monitoring process.
Language and Cultural Barriers
Outsourcing to a foreign country gives you the opportunity
to save money, but you must be sure that the consultants can communicate in
your target audience's language. They should also understand the proper
cultural conventions so they don't cause any offense. Finally, you do need to
consider your target market's reaction. Do they expect you to hire locals?
Data Security Concerns
You'll share sensitive customer data and this comes with
data security and reputational risks. You'll need to make sure that the
provider adheres to the strictest data safety protocols. They should be on a
par with or better than your own.
Compliance issues may also crop up when dealing with a
vendor outside of your home country. You must ensure that they comply with
their local regulations as well as any pertaining to the areas you operate in.
Quality Variability
Hidden Costs
Entering into this market can be confusing because you might
not know what costs to expect. It's worth getting at least three or four quotes
to see what the average price is. Be wary of companies that charge much lower
fees because they may be baiting you into signing a contract. They might make
up the difference later with hidden fees.
You can mitigate this risk by being very clear about what
you expect the company to do. Then, create an ironclad contract that makes the
expectations on both sides as clear as possible.
Reputational Risks
You're trusting this company with your reputation. They're
your representative so if they let a customer down, it's your brand that
suffers. That's why it's vital to take time to research every candidate company
carefully before signing up.
Loss of In-House Expertise
By moving this function outside of your company, you'll lose
the expertise within your company. This makes it harder to reincorporate
support later if you change your mind.
Transition Challenges
Transferring your call center operations can be a complex
and time-consuming process. There are bound to be teething problems, which can
impact customer service in the short term.
Conclusion
Outsourcing services provide companies with a significant
number of advantages. However, there are some drawbacks to consider as well.
While companies can mitigate the latter with careful research, they must still
take them into account before signing up.
