Outsourced Contact Center Vs On-Premise Solutions: Pros and Cons

The choice between an outsourced contact center and on-premise customer service solutions can be a difficult one for businesses. Both options have their own benefits and drawbacks, making it important for you to carefully consider your needs.

In this article, we’ll take a closer look at the benefits and disadvantages of both outsourced contact centers and on-premise solutions to help you make the best decision for your business’ unique requirements. 

✔️ Outsourced contact center benefits

Scalability: One of the biggest benefits of working with an outsourced contact center is scalability. Outsourced solutions are easily scalable, allowing businesses to add or remove agents as needed without having to worry about the infrastructure required to support them. This is particularly beneficial for businesses that experience fluctuations in call volume or need to quickly respond to changing customer demands.

Cost savings: Outsourcing a call center can help you reduce your overhead costs as you do not need to invest in hardware, software, and other infrastructure. You can also save money on training, salaries, and benefits for call center staff.

Flexibility: Outsourced contact centers are highly flexible, allowing businesses to easily customize their solutions to meet their unique needs. 

Expertise: Outsourced contact centers typically employ experienced professionals who are trained to handle customer support operations. This provides businesses with access to a pool of expertise that you may not have in-house.

Improved customer experience: Outsourced contact centers are solely focused on providing high-quality customer service, which can result in improved customer satisfaction and increased customer loyalty.

Reduced stress: Outsourcing a contact center can relieve businesses of the stress associated with managing customer support operations. That way you can focus on your core operations while your call center partner handles customer support.

❌ Outsourced contact center disadvantages 

Reduced control: Outsourced contact centers are managed by third-party providers, which can result in reduced control over customer support operations. Businesses may also have limited visibility into call center operations, which can make it difficult to monitor performance and resolve issues. Be sure to talk with potential providers to find out how they will work with you to manage the customer service experience and ensure you’re always in the loop. 

Security risks: Outsourced contact centers often handle sensitive customer data, which can be vulnerable to security risks such as data breaches and cyber attacks. Businesses need to carefully evaluate the security measures of their call center provider to ensure the safety of customer data.

Quality control: Outsourced contact centers may not maintain the same level of quality control as on-premise solutions, which can result in sub-par customer support. Businesses need to carefully evaluate the quality of service provided by their call center provider to ensure they are meeting their customers' needs.

Communication issues: Communication between outsourced contact centers and businesses can be challenging, which can result in misunderstandings and delays in resolving customer issues. Your call center should help you establish clear communication channels and processes to ensure seamless coordination.

✔️ On-premise solutions benefits

Increased control: With on-site customer service solutions, businesses have greater control over their customer support operations. This means you can implement processes and procedures that meet their specific needs, and monitor performance in real-time to resolve issues quickly.

Improved security: On-site customer service solutions allow businesses to keep sensitive customer data within their own premises, which can help to protect customer privacy and maintain customer trust. That being said, if you do not have the correct security measures in place at your business, you can be at greater risk of data breaches or cyber attacks.

Customization: On-premise solutions can be customized to meet the specific needs of a business, which can be particularly useful for businesses with unique customer support requirements. If you work with a call center, you will want to ensure that their solutions can be customized to meet your needs. 

Access to in-house expertise: On-site customer service solutions provide businesses with access to in-house expertise, which can result in improved customer support. Businesses can also invest in training and development to ensure their customer service representatives are equipped to handle customer inquiries effectively. This will, however, increase expenses related to operating your customer service department. 

❌ On-premise call center disadvantages

High cost of implementation: Implementing an on-premise call center solution can be expensive, as businesses need to invest in hardware, software, and other infrastructure. This can be especially challenging for small businesses with limited resources, especially as technology evolves. 

Maintenance and support: On-premise solutions require ongoing maintenance and support, which can be time-consuming and costly for businesses. They also need to hire and train call center staff, which can add to their operational costs.

Scalability challenges: On-premise solutions are not as scalable, which can make it challenging for businesses to accommodate changes in demand. This can be especially problematic for businesses that experience seasonal fluctuations in customer support volume.

Lack of expertise: On-premise solutions may not have access to the same pool of expertise as outsourced call centers, which can result in sub-par customer support. Businesses need to invest in training and development to ensure their call center staff are equipped to handle customer support operations.

Increased stress: Managing a call center in-house can increase stress for businesses, as they need to handle all aspects of customer support operations, from infrastructure to staff management. This can divert resources away from their core operations and impact their overall productivity.

In conclusion, the choice between outsourced call centers and on-premise solutions will depend on the specific needs and goals of your business. By carefully considering your needs and weighing the benefits and drawbacks of each option, you can make an informed decision that best supports your customer support operations and overall business success.

Have you made your decision and you’re now looking for the right outsourced contact center to partner with? Make sure to download our Definitive Buyer’s Guide to Outsourcing Your Call Center.