Have you ever dialed a customer support number and found that the person at the other end lives halfway across the globe? This is where call center outsourcing plays a major role. 

Do you know that call center outsourcing services are one of the top choices of developing countries like Europe and America? 

These countries outsource their call center operations from less expensive countries like Asia to manage their budget and ease their business operations for a cost-effective business solution. 

This can either be performed by an in-house team under a separate unit within a company or by hiring a third-party company who is specialized in this activity. The dedicated call centers handle day-to-day customer queries such as solving credit card issues, checkout process problems, and many more. 

It is a strategic method by which businesses can lower their operational costs and optimize customer service solutions. High-quality customer support is one of the major factors that help businesses grow their customer base. 

Deciding whether or not to choose outsourcing a call center is a tougher decision to make as some may say that it decreases the quality of service and some may argue that it improves profitability. 

If you are at an early stage of deciding whether to choose this service, then you might be thinking of two things. On one hand, you might have concerns about handling your call center operations overseas and on the other, you might be thinking of potential cost-savings. 

However, it is important to first understand the pros and cons of it before moving forward. By looking at your business objectives, you can gain more advantages and lower the drawbacks. 

With this comprehensive guide, you will discover the pros, cons, and best practices performed by outsourced call center services. You will get a deep understanding by which you can make an informed business decision on whether this strategy matches your business needs. 

We have gathered enough information to show you both sides of a coin but we are leaving the decision to you. Read more to get some surprising benefits and drawbacks of it. 

What is Call Center Outsourcing?

Call center outsourcing refers to a strategic business decision made by a company to delegate its customer support inquiries from a third-party source often called a Business Process Outsourcer (BPO) rather than hiring an in-house team of employees. 

It is also called contact center outsourcing where representatives communicate with the customers of a company using live chat, phone calls, email, or other social media channels. 

As per reports by Technavio, this industry is expected to grow by 3% from 2019 to 2023. This gives companies the flexibility to manage their internal operations effectively. 

It helps them to focus on sales, marketing, product and service development, and other business operations. Some of the tech giants use contact center outsourcing solutions such as TCS, Dell, JPMorgan Chase, and many more because of their multiple benefits. 

Companies should carefully make decisions about whether to outsource a part or an entire call center operation from a third party. You can choose outsourcing companies from your area or other countries as per your budget and convenience. 

For example – Some of the industries that are benefited from using call center services include – 

• Accounting

• IT and Communication

• Marketing

• Manufacturing

• Tour and travel

• Banking, Insurance, and Finance 

Why Companies Should Invest in Call Center Outsourcing?

Call center outsourcing holds numerous advantages that make it attractive for various companies to invest their budget in this sector for long-term success. The decision is often made to receive exceptional customer service at lower operational charges. But this is not all. 

Here are some of the major reasons why companies should choose contact center outsourcing solutions – 

1. Flexibility and scalability

Call center companies can easily add or reduce the number of operators as demand fluctuates during peak seasons, holidays, or at the time of marketing campaigns. This helps them provide a constant level of customer support in real-time to their clients at an affordable budget. 

But, during quieter times, they can easily scale down their operations which is not possible in the case of hiring an in-house call center department. 

2. Focus on core business activities

By opting for call center outsourcing, companies can focus on their core business activities by managing internal resources and core competencies effectively. 

Instead of managing call center functions, companies can focus on marketing, sales, product development, and future planning which are critical for the growth and to survive in the competition. 

For example – A mobile app development startup company can focus on enhancing software features rather than concentrating on customer service as call center outsourcing companies are there to take care of it.

3. Reduction in costs

An important advantage of outsourcing call centers is savings in costs. Companies can save a lot of overhead costs of building and maintaining an in-house call center team which includes hiring, training, infrastructure, employee salaries, and technology. 

Expenses on all these activities can be saved and reinvested in other areas of business. Outsourcing companies provide high-quality services at affordable costs as they have a wide range of resources and economies of scale that they can scale up and down at any time. 

4. Scope of expansion

When call centers handle all your customer support, you can focus on expanding your business into new markets. The third-party call center solution provider will set up its operations easily and manage your customer support department. This way you reduce the stress of setting up an in-house call center team.

5. Receive data-driven reports

Call center providers always provide analytics and reports in detailed form to their clients. They gather and analyze the data on the basis of customer trends, tastes and preferences, and their pattern of queries. 

These reports help in strategic planning, product development, and decision-making so that their clients always go with the competition by adapting to the changing marketing trends. 

6. Access to advanced technology and expertise

Call center outsourcing companies improve their service quality and working efficiency by using advanced technologies and software. Now companies don’t have to invest in buying the latest tools and technologies for their in-house call center team. 

Outsourcing companies resolve customer queries efficiently with the help of their well-trained staff members. Their highly professional team excels in solving the most difficult customer issues in less time. With their assistance, your customer loyalty and satisfaction level also increase.  

7 Main Types Of Call Center Outsourcing Services

Call centers provide a wide range of services and they all have different goals and responsibilities. They provide benefits to both customers and businesses. It is important for a company to understand the strengths of each call center so that they can pick a better option for their company. 

Call centers can be categorized into two major aspects – 

• According to the location they are from

• According to the support services they provide

Let’s have a look at the various types of call center outsourcing providers – 

1. Inbound call centers

These types of call centers receive all types of incoming calls from customers of a particular company. It is a type of service given to the existing customers of a company or new customers who are looking to purchase your products and services. 

Inbound call centers act as a vital business tool as they help them provide complete customer support assistance. Businesses choose this call center as they don’t want to spend their budget on infrastructure and staffing or their maximum time on handling high call volumes. 

They have a team of professionally trained experts who manage both high and low call volumes. In addition to this, they are also trained in upselling techniques. 

They assist in – 

• Order processing

• Help desk support

• Assisting in dispatch services

• Chat support

• Tech support

• Responding to emails

• Loyalty programs

2. Outbound call centers

An outbound call center representative specializes in reaching out to customers on behalf of your company to start building an engagement with them. It is a method by which companies can expand the growth of their business at a minimal cost. This plays a major role in the sales funnel or lead generation. 

Here, operators will call your leads to acquire new customers. It creates a sense of positive brand sentiment by building trust in customers and gaining customer satisfaction. 

The two most common responsibilities performed by outbound call centers include expanding sales reach and selling goods to potential users. 

Some standard outbound call center services include – 

• Performing customer surveys

• Conducting market research

• Setting appointment

• Introducing goods and services via phone calls 

• Registration of events

• Explanation of the amount or number of purchased goods in bills 

• Product recalls

3. Automated call centers

An automated call center enables a company to use computer-based systems to handle customer calls so that they can reduce the cost of their call management to some extent. 

They use Interactive Voice Response (IVR) in their call centers where customers can interact with the self-service menu by using speech recognition or dial entry features and get connected to the right operator who can solve all their queries. 

To manage all the inbound calls, the advanced call centers use artificial intelligence, automation features, and voice technologies to easily interact with the users in no time. 

It is time-efficient for human agents as they can give attention to the important tasks and leave the easy part on the computer-based software. Organizations these days rely on electronic devices to always stay in touch with customers. 

These types of call centers have fewer staff members as they only need staff to handle selected responsibilities which automation software cannot complete. 

Some of the processes that are automated by an automated call center include – 

• Check-in reminders

• Appointment reminders

• Online scheduling

• Email management

• SMS texting

• Holiday greetings

• Assisting the customers in finding locations

• Interactive voice responders

4. Omnichannel call centers

An omnichannel contact center uses a cloud-based system software to manage customer interactions across multiple channels by providing both inbound and outbound call center services. 

These channels include live chat, phone calls, SMS, email, and social media. It helps call center agents enhance customizations and coordination by gathering customers’ information from all the platforms and then solving their queries easily. 

This helps to solve the problems of customers on the first call which increases the first call resolution rate. 

Here, all the departments are interconnected with each other and they exchange information that is collected from different mediums. This helps call center agents drive better results by maintaining interaction with the clients. 

Customers will get a consistent and seamless experience as in this setup their history and data will be shared across multiple channels by which they can easily switch between other channels without having to repeat their information. 

5. Multichannel call centers

It is similar to omnichannel call centers as here call center operators also use phone calls, social media, SMS, email, and many more mediums to handle both inbound and outbound customer care support services effectively. 

The only difference is that every communication channel operates independently with a separate system and a team in multichannel call centers. No matter how your customers contact you, this type of call center quickly connects with customers using one software. 

One drawback of this call center is that customers may not have a seamless experience when they switch between different channels. 

For example – Customers may initiate their conversation in the live chat but they have to share all of it again in the phone call. 

6. In-house call centers

An in-house call center performs its operations within a company whose operators have all the necessary equipment along with proper training to handle all customer queries. 

Initially, it needs a good amount of investment but gives great benefits in the long run. Here, companies have full control over their management and resources and agents who have complete knowledge about their products and services which helps them in solving customer issues easily. 

If some operators are not able to solve any query of a user, then it is directly transferred to a specialized agent. They can go through all the insights of customer behaviour and interactions which helps them to improve their business strategies.

7. Virtual call centers

Virtual call centers are famous for their unique working methods. A few years ago, all call center representatives used to work in one location in a particular office building and had limited technical resources. 

Today, the entire working system has been changed. Thanks to the advanced technologies with which virtual call centers came into existence. Call center agents are now working from different locations worldwide by speaking different languages. 

They provide inbound and outbound call center services, 24/4 support assistance, and work in different time zones lowering the operational costs. With this, companies can increase their turnover by providing better customer support. 

The Pros. of Call Center Outsourcing Services

When considering call center outsourcing, it’s important for you to know its potential benefits. Some of them include – 

1. 24/7 customer support keeps your clients happy and satisfied

Providing 24/7 customer support is a game-changer in today’s rapidly growing world. This ensures that customers of a company can get support assistance whenever they need it, irrespective of the different time zones or operating hours of your business. 

This helps to foster brand loyalty and improve customer satisfaction in the long term. With 24/7 support, there will always be someone listening to your customers who can immediately help them anytime in any type of medium they prefer. 

For example – If you are an eCommerce store owner, and you are not immediately answering queries to your customers or assisting them on time, then you may lose a potential buyer who might be shopping on your online store. They may go to some other website and you lose a lead. 

2. Costs less than hiring an in-house team

Outsourcing call center services usually results in cost savings when compared to hiring in-house team members. Customer support service eats up a considerable portion of a company’s budget. 

This eliminates the burden of all the overhead costs such as office space, tools and technologies, employee salaries, training, and other miscellaneous expenses. Companies pay a sum of the amount to an outsourcing partner so that they are free from all such expenses. 

Companies should always choose to outsource from low-cost regions which helps them to reduce almost 50% of their expenses. The cost-cutting measure is one of the primary reasons and a strategic method followed by various companies so that they can allocate their resources and streamline their working methods efficiently. 

As a result, employing an outstanding call center outsourcing company will save a lot of time and energy and as a bonus you will also get exceptional customer service standards. 

3. Manage complex call center tasks with no worries

One of the most difficult challenges a company and its customer support team have to face is to always cope up with the latest technology innovations and trends to survive in the competition in the long run. 

CRM software, IVR in call centers, cloud-based AI tools, and many more technologies are designed to complete highly advanced tasks such as finding out the current emotions of customers, customer journey mapping, analyzing current customer support strategy, building customer traits list, and many more. 

You can leave all your complex call center tasks in the hands of a qualified contact center company as they always learn and are updated with the latest technological innovations and tools. 

4. Helps you in growing nationally and internationally 

Call center outsourcing companies help to ease the process for a company to grow its business operations in the national and international market. 

Instead of wasting abundant resources and time on creating a whole new customer service department from scratch for all new markets, companies can choose to outsource their different projects from their call center partner for different locations. 

If you want to sell your products in the international market, then you do not need to hire new call center experts as when you choose to outsource, call center representatives support users in multiple languages across different countries. 

This can easily be performed with customer relationship management (CRM) software and Voice over Internet Protocol (VoIP). These tools help in effective customer management and maintaining a flawless communication with customers. 

CRM software helps to provide high-quality customer service by analyzing and maintaining customer interactions effectively. Similarly, VoIP helps to manage customer calls from anywhere in the world without any need for an internet connection. 

This way businesses can expand their market successfully while also providing top-notch customer support. 

5. Provide immediate response to callers

Different business sectors and industries face a sudden spike at some point in time, say during the holiday season, the sale of some companies increases rapidly due to which they get more calls or need effective management in the customer support area. 

Thus, it makes it difficult for companies to hire and train staff every time during peak season. 

But by choosing call center outsourcing services companies can remove such risks as call center agents specialize in handling large call volumes and providing them instant response by resolving their queries in just a few minutes. 

6. Let you focus on your core strengths

Handling customer issues is one of the most difficult issues a business has to face when it performs its operations. This important task can be carried out by a professional outsourcing company that is capable of handling such tasks. This way companies will be able to concentrate on their core business activities. 

7. Impeccable customer support

Infrastructure in the telecommunication sector can often become outdated and unreliable and maintaining or replacing it can be costlier for some companies out there. 

Anyways, a company can never work with an outdated system as it will lower the competitive advantage of that company. 

By selecting call center outsourcing, a company can focus on innovating its products and services instead of focusing on updating its tools and technologies. 

The Cons. of Call Center Outsourcing Services

When considering call center outsourcing, it’s important for you to know its potential drawbacks. Some of them include – 

1. Lack of product and service knowledge

It is one of the main drawbacks where employees may not have detailed knowledge about the goods and services of a company. In-house expert teams usually get extensive training about the products of a company and they are also well-versed with the values and culture of a company. 

In-house team members always try to resonate with the voice of their brand as they know how to solve customer issues in an efficient manner by providing them with personalized services. 

However, call center outsourcing companies may not have the same level of in-depth knowledge about your company as they have to work with several clients out there. 

This can result in lower personalized services and a longer call handling time. Outdated product knowledge also results in problems in solving customer’s pain points and lower confidence levels. 

2. Language barriers and cultural problems 

One of the problems a call center outsourcing company has to face is the usage of foreign accents. 

For example – In some countries, employees may not be able to speak English, and due to this customers in the USA face difficulty in understanding what they are trying to say. This results in frustration in customers which leads to a poor customer experience. 

Effective communication is important in customer service and if agents of a call center are not familiar with any slang or don’t know the native language of a country, then it can result in a higher level of customer dissatisfaction. 

This is not a problem that cannot be solved as this can be eliminated easily when companies take out their time to conduct research, check the reviews, and then make a decision on selecting the company that meets their requirements. 

Remember, cost is not the only factor that should be considered but other factors such as language barriers should not be overlooked. 

Sometimes cultural barriers also result in failure in communication with customers as there are different values and norms followed by different countries. As a result, operators may not understand the problems of clients or will also be perceived as rude by users.

3. Limited knowledge of problem-solving

If you choose to outsource call center services, then forget about solving challenging customer issues. Operators will only follow the guidelines provided by your company and there is hardly any chance that they will think out-of-the box. 

Your external agency can easily solve basic customer inquiries but what about solving complex technical issues? The unsolved issue will directly come back to the internal team of your company which may lower the client’s satisfaction level. 

4. Issues in security and privacy

You should always choose a trusted call center outsourcing company as they will have access to the contact information, customer database, and credit card details of your customers. This sensitive information should be dealt with utmost care and security as it should never be leaked. 

Your outsourcing partner should have up-to-date processes and certifications that will help to protect your business and customer information. Check their measures on how they will safeguard your important data, 

5. Lack of quality control

Due to different time zones, companies can face challenges in dealing with their call center outsourcing partner. This creates chaos and miscommunication in the operation as companies don’t get valuable feedback from outsourcing companies. 

Due to differences in time zones and lack of physical contact, there is no real-time communication between them which can result in delays in addressing and solving customer concerns at the proper time and can result in low-quality service. 

A lack of quality control processes can have a great impact on overall performance. It becomes challenging for an outsourcing company to meet the expected results and desired standards with no proper quality control measures. 

6. Customer satisfaction level is neglected

As per reports by Forbes, almost 58% of users say that they want to do business with those companies that deliver great customer service. Customer satisfaction levels may remain behind if the main focus of a call center is to cut costs. This can negatively impact long-term revenues and customer loyalty. 

It can significantly affect call resolution rate, customer experience, and overall perception of a brand. Call centers should closely work on saving costs along with delivering top-notch service. 

Best Practices To Follow For Choosing the Right Call Center Outsourcing Provider

Here are some of the best practices a company should follow before selecting a  call center outsourcing company – 

1. Look for a call center that has experience in your industry

Choosing a call center that has prior experience working in your industry type or any similar field. These call centers will be familiar with the type of goods and services you offer. They will also know what tone or a specific language is appropriate for your target audience. 

This will result in a smooth customer onboarding process and the problems of customers will also be solved quickly. They will use the best practices and valuable insights for better interaction and to deliver high-quality customer service. 

2. Choose those call centers that have similar working cultures

Finding an identical call center company with an identical work culture is not possible but finding one who has a similar work ethic and values will result in a great partnership with a contact center company. 

It will help in proper collaboration, smooth communication, and better teamwork. There will be compatibility in the working culture of your organization which will result in a consistent customer experience and a positive brand image at all touchpoints. 

3. Customer satisfaction should be at the top of everything

Customers are the lifeline of your business and thus, you need to take special care of them when you are choosing to outsource from a third party. You can conduct audits of the quality of customer service every day which are provided by the external company. 

For example – You can send a survey via email to your customers related to the customer service experience.

4. Initially assign them some particular role

You need to clearly define and share your customer support roles in your outsourcing plan and let them perform some of the responsibilities. Whether they handle technical support, inbound sales, or outbound sales, ensuring that they always align with your brand’s objectives and focus on the core strengths. 

This way they will develop a deep understanding of different tasks which will result in a higher customer satisfaction level. 

5. Give them documentation related to workflows and responsibilities

While implementing call center solutions, you should provide a call center company with clear documentation related to procedures, plans, and workflows. It should contain roles and responsibilities, particular tasks, and expectations of results. This will lower the chances of errors and misunderstandings. 

The Bottom Line – Are Call Center Outsourcing Solutions Worth It?

Call center outsourcing plays a double role where on one side it helps to save additional costs and work with proper operational efficiency but on the other side it sometimes lowers customer satisfaction level or produces low-quality work. 

However, if it follows and implements some best practices, it can minimize all such drawbacks. 

By using the most advanced and innovative technologies, a clear documentation process, gaining control over major functions, and choosing the right partner will help you to enhance your brand’s customer perception and support. 

Octopus Tech here comes into play as we help various companies manage all types of customer queries from simple to complex in less time by building a rapport with both customers and companies to increase the overall interaction level with them. 

We carefully study the products and services of a company, analyze customer queries, and solve them within a few minutes. By using proper strategies, our call center professionals enhance the working methods to drive great results.