Taking too long? Close loading screen.

Outsourcing customer service: good or bad for business?

Written by on July 8th

Digital CX

Outsourcing customer service has become a popular trend in recent years. This is because it is often cheaper to outsource this service than to employ many personnel to handle customer interactions. Outsourcing customer service can help businesses focus their resources on more critical tasks.

The types of customer service that can be outsourced 

There are many different types of customer service that businesses can outsource. Some customer service tasks, such as handling returns and refunds, are relatively simple and can be easily operated by a third party. Other tasks, such as providing technical support or helping customers with product orders, may require specialized skills and knowledge. It is essential for businesses to carefully consider the needs of their customers and the complexity of the tasks that need to be outsourced before selecting a provider. Often, small businesses will choose to outsource customer service tasks because they are too time-consuming and expensive to be handled by the firm.

Sometimes, a business may need to outsource customer service to meet customer demand, or it may simply be cost-effective. Companies may outsource customer service to a third party. Still, outsourcing is not always done through a direct contract between the business and the customer. Sometimes, companies will use an intermediary to take care of their customers. Intellectual property is another essential factor influencing a business to outsource customer service. The outsourcing of customer service is a widespread practice among businesses. Outsourcing can be beneficial to both the business and the customer. Most often, when a company outsources customer service, it can give more attention to the core value of its business. 

How to choose the right outsourcing partner 

Businesses must choose the right outsourcing partner when outsourcing some or all of their operations. The process of selecting the right partner can be daunting, but with careful planning and consideration, it can be a relatively straightforward process. The first step is to determine what services you need outsourced and what your business goals are. Once you have determined this, you can begin researching potential partners. Be sure to ask for referrals from other businesses that have outsourced services in the past. Once you have a shortlist of potential partners, you must do due diligence and research each one thoroughly. Ask for references and view case studies of their work. Once you have chosen a partner, be sure to establish clear expectations and guidelines for working together. 

The benefits of outsourcing customer service 

In a world where businesses are constantly looking for ways to cut costs, one area that is often outsourced is customer service. And there are good reasons for this: outsourcing customer service can be cost-effective and improve your customer satisfaction ratings. 

Outsourcing customer service can save you money in the following areas:

  1. Cost of hiring and training employees
  2. Cost of office space and equipment
  3. Cost of providing benefits, such as health insurance

Another benefit of outsourcing customer service is that it can improve your customer satisfaction ratings. Outsourcing often leads to faster response times and higher quality support. In addition, outsourcing allows you to provide better customer service by offering support in multiple languages. The cost savings typically come from having fewer employees to pay for or using less office space and equipment. For example, suppose you are an insurance company. In that case, you could outsource some aspects of your customer service to an outside agency. 

The risks of outsourcing customer service 

Recently, customer service outsourcing has become a popular option for companies looking to reduce costs. However, while outsourcing can be cost-effective, it also carries a number of risks that businesses should consider before making a decision.

One risk is that outsourcing can lead to declining customer satisfaction and loyalty. Customers who have to deal with a foreign company may find communicating their needs and concerns challenging. They may also feel they are not being treated fairly, or their concerns are not being taken seriously. This can lead to them taking their business elsewhere.

Another risk is that outsourcing can impact the quality of service provided. When customer service is handled by people unfamiliar with the company’s products or services, they may not be able to provide the level of support that customers expect. 


Remote or physical call center?

Remote work is growing in popularity for several reasons. Suppose you have remote employees or are exploring the possibility of hiring more remote workers. In that case, you’re probably knowledgeable about the pros and cons of remote work. Bear in mind that the same pros and cons come into play in determining what sort of call center would be better and what you may prefer to delegate.

A physical and virtual call center both have their challenges. The most significant disadvantage of using a physical call center is creating a special bond between people. However, a physical call center can solve one of the challenges of using a virtual team by enabling your team to create connections and camaraderie. If you outsource a remote customer service team, make sure you make every effort to make this connection.

International or domestic outsourcing?

One of the chief benefits of outsourcing globally is that it’s almost always less expensive. Suppose your organization’s location has a higher cost of living than the location of the outsourcing partner. In that case, you may be able to select highly skilled support specialists inside a low-cost country and still pay them a fair wage.

Domestic outsourcing presents two primary advantages to understand. The first advantage is cultural understanding. Domestic support teams may better understand their problems and needs if your customer base is primarily domestic. Nonetheless, a good training program can be beneficial for international agents to handle any concern that domestic agents can address.

Second, domestic outsourcing also offers cultural familiarity. If your customer base is mostly domestic, utilizing national agents may help you understand and address any issues or concerns more effectively. But, training national agents well can enable them to handle nearly any concerns or questions that domestic agents can handle.

Which location should you choose for outsourcing?

It’s crucial that you take into consideration what your business needs are when selecting an outsourcing location. For instance, if you need server administrators who speak European languages, you might want to outsource to Eastern Europe. You may want to select locations like Mexico or the Philippines for additional servers who can speak Spanish and monolingual English. For general customer service in English, the Philippines is a superb choice. Many highly educated and professional men and women speak fluently English with just a little effort. Additionally, Filipinos can work in any time zone, so they are the perfect solution if you specifically desire a 24/7 support function.

Dedicated or shared agents?

Companies often involve BPOs, which use shared employees to respond to tickets on behalf of the company. This approach may be necessary if your organization has a significant call volume or you don’t have the capability or financial resources to pay a dedicated person. However, outsourcing brings some unwanted consequences.

Some companies allow multiple shared agents to provide top–quality support due to their heritage because they can’t become well-versed in your material and pay attention to each customer’s requests as attentively as individual agents can. If you pursue this approach, simplify communication with the outsourced team, sending help desk tickets concerning password resets only.

Dedicated agents, as you may conclude, are committed to helping your business be successful. This has several benefits:

  1. Dedicated agents can effectively understand your product, brand, and culture.
  2. Dedicated agents are easier to integrate into your group.
  3. Dedicated agents can often develop a deeper understanding of your company strategy.

Outsourcing customer service is a great way to improve your customer service without investing in additional staff or training. By choosing a reputable company to handle your customer service, you can be assured that your customers will be taken care of professionally and promptly.


Scale your team. Scale your business. Ambitious businesses hire us when they need custom-built teams of elite outsourcers that other BPO firms can’t deliver.

Scale your team.
Scale your business.

Serious about scaling?

One call is all it takes to know if we’re a fit.

© 2024 Enshored · Privacy · GDPR · California · Cookies