Taking too long? Close loading screen.

BPO Insights by Enshored

Why top companies like Amazon outsource customer service

Numerous companies, including big names like Amazon, American Express, and IBM, outsource their customer service to expert call centers globally. This strategic move helps them to provide round-the-clock, efficient customer support while reducing operating costs.

Table of Contents

I. Introduction

Anxious about escalating customer service costs? Wondering how to provide 24/7 support? You’re not alone. Many leading companies outsource their customer service, striking a balance between cost efficiency and quality support. This post unveils the whys and hows of this trend, touching on:

  • The strategic reasons behind outsourcing customer service
  • The big players in the game and their outcomes
  • Navigating the benefits and risks effectively

Let’s take a closer look.

II. Understanding the Concept of Outsourced Customer Service

Before we delve deeper into the benefits of outsourcing customer service, it’s crucial to grasp what this concept truly entails.

Definition and Brief Overview of Outsourcing

Outsourcing involves partnering with third-party service providers to manage specific operations or functions that were traditionally carried out in-house. In the realm of customer service, this means entrusting the responsibility of handling customer inquiries, complaints, or support requests to specialized external agencies. These outsourced service providers are often located in various parts of the world, allowing for round-the-clock availability.

Why Companies Choose to Outsource and its Benefits

When we talk about outsourcing, it’s important to understand why so many businesses opt for this strategic move. Let’s cover some of the key reasons:

  • Cost Efficiency: Running an in-house customer service department can be a costly affair. Outsourcing this function drastically reduces these operational costs.
  • Continuous Availability: With outsourced partners in different time zones, customers can enjoy uninterrupted 24/7 service.
  • Expertise: Outsourced customer service agencies specialize in this field. Their expertise ensures high-quality service delivery that often surpasses what an in-house team could provide.

It’s clear to see that the decision to outsource isn’t taken lightly. Companies understand that in doing so, they’re not just cutting costs, they’re also elevating the quality of their customer service and ensuring their customers can always find help when they need it most.

In essence, outsourcing customer service is more than just a cost-cutting measure. It’s a strategic choice that companies make to enhance their customer service capabilities, while also enjoying the benefits of cost efficiency and continuous availability. This understanding is vital as we continue to explore the world of customer service outsourcing.

III. The Customer Service Outsourcing Landscape

Now, let’s dive into the wider landscape of customer service outsourcing. It’s a trend that’s growing rapidly, and it’s shaping industries in ways you might not expect.

General Statistics and Trends on the Practice of Outsourcing Customer Service

The outsourcing scene has seen significant expansion in recent years. We see more and more businesses choosing to outsource their customer service operations. According to a report by Grand View Research, the global market for business process outsourcing is expected to reach $405.6 billion by 2027. This growth showcases the increasing trust in outsourcing as a viable and beneficial strategy for businesses.

Our research also shows that businesses are spreading their outsourcing across different regions, allowing them to provide 24/7 customer service. Asia-Pacific, for instance, continues to dominate as a prime outsourcing destination, thanks to its cost-effective services and skilled workforce.

Short Overview of Industries That Commonly Outsource Their Customer Service

While outsourcing is a common practice across various industries, certain sectors tend to outsource their customer service more frequently. Here’s a brief overview:

  • Information Technology: IT companies often outsource customer service to handle technical support and other customer queries.
  • E-commerce: Online retail businesses are known for outsourcing their customer service to manage high volumes of customer interactions.
  • Telecommunications: Telecom companies outsource customer service to provide support to their vast user base.
  • Finance: Banks and other financial institutions often outsource customer service to handle customer inquiries and complaints efficiently.

In conclusion, the customer service outsourcing landscape is vast and varied. Trends show a growing favor towards outsourcing, and it’s shaping industries in significant ways. Whether it’s IT, e-commerce, telecom, or finance, businesses across different sectors are leveraging the power of outsourcing to enhance their customer service capabilities. And as we move forward, we can only expect this trend to continue to rise.

IV. Revealing the Big Names in Outsourced Customer Service

When it comes to outsourced customer service, you’d be amazed at the sheer number of renowned companies that rely on this strategy. From tech giants to reputable financial corporations and global retail chains, various industry leaders are leveraging the benefits of outsourcing.


Amazon, the e-commerce behemoth, supports its vast global customer base with the help of outsourced service centers. These centers, located in the Philippines, ensure that customers always have access to prompt and efficient service.

Capital One Financial Corp.

Specialized banking services are at the heart of Capital One Financial Corp.’s commitment to its customers. It’s no surprise, then, that they’ve partnered with a Filipino Business Process Outsourcing (BPO) firm to ensure their customer service is top-notch.


Google, another industry titan, outsources phone and email support for its AdWords service. This strategic move helps Google achieve a positive Return On Investment (ROI) while ensuring customers receive high-quality support.


Hootsuite is a leading name in social media management. To keep up with their expanding operations, they’ve opted to outsource customer support. This allows them to scale up without compromising on service quality.

JPMorgan Chase & Co.

With an extensive global footprint, JPMorgan Chase & Co. also outsources customer service. Interestingly, they invest in upskilling their Filipino employees in financial management, adding value to their outsourcing partnership.


Known for owning and operating general merchandise stores, Target Corp. outsources its call center operations to the Philippines and India. This move ensures they can provide a high standard of customer service consistently.

The Bank Of America

The Bank of America, a global leader in wealth management, is one of the largest American employers of call center services abroad. By outsourcing customer service, they can keep their vast customer base satisfied.

The Principal Financial Group

The Principal Financial Group takes advantage of outsourced customer service to deliver financial tools and resources to customers worldwide. This ensures their customers always have access to the support they need.

The Wall Street Journal

Finally, The Wall Street Journal, known for its business-oriented news, outsources its customer service to a Philippine BPO. This strategic move helps them increase customer retention and achieve their business goals.

It’s evident that outsourcing customer service is a strategy adopted by numerous high-profile companies across various industries. By doing so, these companies are able to enhance their service offerings and boost customer satisfaction. The trend is clear: outsourcing customer service is no longer an exception; it’s becoming the norm.

V. Why Reputed Companies Are Outsourcing Customer Service

As a leading BPO firm, we’ve had the privilege of working with some of the world’s most reputed companies. Over time, we’ve observed certain key reasons why these companies choose to outsource their customer service operations.

Cost-effectiveness of Outsourcing

One of the primary reasons companies outsource their customer service operations is the cost-effectiveness it offers. Hiring, training, and maintaining an in-house customer service team can be expensive. On the other hand, outsourcing helps companies reduce overhead costs significantly.

  • Lower Personnel Costs: Companies don’t have to worry about recruitment, training, salaries, and benefits.
  • Reduced Infrastructure Costs: There’s no need to invest in office space, equipment, or utilities.
  • Pay for What You Use: Pay for services as and when required instead of maintaining a full-time, in-house team.

Advantage of Around-the-Clock Availability of Customer Service

In today’s digital era, customers expect immediate responses to their queries. This can be challenging if you’re operating in just one time zone. Outsourcing customer service to global locations ensures 24/7 availability, giving customers the attention they deserve at all times.

Portrayal of Language Proficiency and Cultural Knowledge as a Benefit

In an increasingly globalized world, it’s important to speak your customer’s language, both literally and culturally. Outsourcing to regions where different languages are spoken and different cultures are understood can enhance the customer experience. For example, a customer who can communicate their issues in their native language is likely to feel more at ease and satisfied with the service.

Overview of Access to New Technologies and Specialized Expertise

By partnering with BPO firms like ours, companies gain access to the latest technologies and specialized expertise in customer service. This allows them to provide a higher level of service without the need for hefty investments in technology or the time-consuming process of staff training.

  • Access to Latest Technology: BPO firms stay up-to-date with the latest technological advancements in customer service.
  • Specialized Expertise: BPO firms are experts in customer service—they know the best practices and how to deliver exceptional service.

At the end of the day, outsourcing customer service isn’t just a cost-saving measure; it’s a strategic move to improve service quality, availability, and customer satisfaction. By understanding the key advantages of outsourcing, it’s clear why so many well-renowned companies are making this choice.

VI. The Risks Involved in Outsourcing Customer Service

Partnering with a third party for customer service certainly comes with numerous benefits, as we at Enshored can attest. However, it’s also crucial to acknowledge and understand the potential risks involved. As we delve into these risks, we’ll discuss concerns around data security, examine potential quality control issues, and review the possible impact on the company-customer relationship.

Data Security and Privacy

In an age where data is a valuable asset, protecting customer information should be a top priority. When outsourcing, there’s a transfer of sensitive data to an external party. This move can potentially expose your customers’ data to risks if the third-party provider doesn’t have stringent security measures in place.

  • Establishing Trust: It’s crucial to work with a BPO firm that prioritizes data security and adheres to international standards.
  • Legal Compliance: Ensure the outsourced company complies with data protection laws in your and their geographical location.
  • Data Breach: Be aware that unauthorized access, loss, or disclosure of data can harm your brand’s reputation.

Potential Quality Control Issues

Quality control can be a challenge when outsourcing customer service. There’s a potential risk of a drop in service quality if the BPO firm doesn’t share your commitment to providing excellent customer service.

  • Consistency: Maintaining consistent service quality can be challenging with an external team.
  • Training: The outsourced team might lack the necessary product knowledge or training.
  • Communication: Language and cultural barriers can lead to misunderstandings and poor customer experiences.

Impact on Company-Customer Relationship

Outsourcing customer service could potentially affect the relationship between your company and its customers. There’s a chance of a brand disconnect if the outsourced team doesn’t fully understand or align with your brand culture.

  • Brand Alignment: The outsourced team must align with your brand’s values and voice.
  • Customer Satisfaction: Misalignment can lead to customer dissatisfaction and impact loyalty.
  • Customer Relationship: Without careful management, outsourcing can create a disconnect between the company and its customers.

In conclusion, while outsourcing customer service has its advantages, it’s also accompanied by certain risks. Being aware and proactive in managing these risks is crucial. Companies need to ensure that their chosen BPO firm is reliable, maintains quality standards, prioritizes data security, and aligns with the brand culture. At Enshored, we understand these concerns and are committed to providing secure, high-quality, and on-brand customer service solutions.

VII. Misconceptions about Outsourcing Customer Service

It’s time to tackle some common misconceptions about outsourcing customer service. As a leading BPO firm, we’ve heard our share of myths and misunderstandings. In this section, we’ll address some of these key misconceptions and offer a more balanced perspective.

Outsourcing vs. Offshoring: The Difference and Why It Matters

One common point of confusion is the difference between outsourcing and offshoring. Outsourcing simply means delegating a task or function to a third-party expert, regardless of location. Offshoring, on the other hand, specifically refers to moving operations overseas.

  • Collaboration: Both outsourcing and offshoring allow us to work with experts worldwide, enhancing our capabilities.
  • Variety: With outsourcing, we can work with service providers in our own country or abroad, giving us more options to choose from.
  • Flexibility: Offshoring is a form of outsourcing, but not all outsourced services are offshored. This distinction offers us flexibility in how we manage our resources.

Understanding this distinction is essential, as it allows us to make more informed decisions about our business operations.

Addressing the Myth about the Lack of Quality in Outsourced Services

Another misconception we often encounter is that outsourced services lack quality. This couldn’t be further from the truth. As a BPO firm, we pride ourselves on our commitment to delivering exceptional service.

  • Professionalism: We work with highly skilled and trained professionals who are dedicated to delivering top-notch service.
  • Quality Control: We have stringent quality control measures in place to ensure our services meet and exceed client expectations.
  • Customer Satisfaction: Our ultimate goal is to enhance our clients’ customer satisfaction levels, and we work tirelessly to achieve this.

With the right partner, outsourcing can enhance rather than diminish service quality.

Debunking the Perception That Only Non-Core Tasks Are Outsourced

Finally, many people believe that only non-core tasks are suitable for outsourcing. In reality, many companies outsource core functions as well, including customer service.

  • Strategic Decision: Outsourcing is a strategic decision, not just a way to offload non-core tasks.
  • Expertise: We outsource functions to experts in their field, ensuring high-quality output for both core and non-core tasks.
  • Focus: Outsourcing enables us to focus on what we do best, while our partners handle their areas of expertise.

Outsourcing is about more than just delegating mundane tasks—it’s a strategic partnership that can benefit all areas of a business.

By addressing these misconceptions, we hope to shed new light on the potential of outsourcing. When approached strategically, outsourcing customer service can offer numerous benefits, from cost savings and increased efficiency to around-the-clock service and access to global talent.

VIII. Conclusion

Outsourcing customer service has reshaped how companies like Amazon and IBM operate. It’s not just a cost-cutting measure; it’s a strategic move for better service quality and availability. While there are risks, proper management and choosing the right partner like Enshored can lead to success. Ready to enhance your customer service?

Contact Enshored for expert outsourcing solutions.

FAQ on Customer Service Outsourcing

What is customer service outsourcing and how does it differ from outsourcing customer service?

Customer service outsourcing refers to the practice where businesses delegate their customer service operations to an external specialized agency, often a customer service BPO (Business Process Outsourcing). Outsourcing customer service, while often used interchangeably with customer service outsourcing, can specifically refer to the act of contracting out the customer support functions to enhance service quality and efficiency.

What are the benefits of choosing to outsource customer service through customer support outsourcing companies?

Outsourcing customer service to dedicated companies, like customer support outsourcing companies, offers several advantages, including access to specialized expertise, cost reduction, the ability to provide 24/7 support, and improving the overall customer experience.

How do outsourced customer service ecommerce solutions compare with customer care BPO services for traditional businesses?

Outsourced customer service for ecommerce specifically caters to online retail needs, focusing on rapid response times and efficient handling of online queries and transactions. Customer care BPO services for traditional businesses may cover a broader range of services, including phone, email, and live chat support, tailored to various industry requirements.

What should companies consider when evaluating call center outsourcing companies and outsourced call center services?

Companies should assess call center outsourcing companies and outsourced call center services based on their expertise in the industry, technology infrastructure, language capabilities, cost-effectiveness, and their ability to align with the company’s customer service goals and values.

What is the difference between outsourced customer service and outsourced customer support?

Outsourced customer service generally refers to the complete management of a company’s customer service department by an external party, encompassing a wide range of services from call handling to issue resolution. Outsourced customer support is often a subset of the broader customer service, focusing specifically on assisting customers with technical problems, inquiries, and support related needs.

Customer Service Outsourcing Hub

Serious about scaling?

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

© 2024 Enshored · Privacy · GDPR · California · Cookies