Today, in the fast-moving corporate world, the road to operational efficiency while trying to ensure customer satisfaction can be fraught. Call center outsourcing is an excellent solution for companies looking to improve customer interaction without incurring high costs. This guide will share what call center outsourcing entails, pros and cons, best practices and some insight into future trends.
What is call center outsourcing?
Outsourcing a call center simply means hiring a third-party organization to handle customer service operations such as receiving calls, conducting surveys, providing technical support and performing back office work. In so doing, outsourcing frees a business to devote more attention to the core functions of product development, marketing and sales.
Key Terms
Contact center outsourcing: This is similar to call center outsourcing. In addition, however, it also involves managing communications via multiple channels including email, chat, video, text and social media.
North American call centers: Call centers located within North America. American companies often prefer them for the alignment of time zones and also because of access to native English and Spanish speakers. Labor rates and attrition can be significant issues for some businesses when deciding to choose a North America-based call center.
Offshore call centers: Call centers located outside of the client organization's continent are referred to as offshore call centers. This may refer to places like India or the Philippines where there is some form of cost savings.
Nearshore call centers: These call centers exist outside the customer organization's country but may be proximate. They are often in places like Central and South America and the Caribbean, offering middle grounds of cost savings with time zone benefits to support North American Companies.
Advantages of Call Center Outsourcing
Cost-Effectiveness
Outsourcing decreases the cost of recruitment, training, and sustaining an in-house team considerably. A company saves on infrastructural and technological investments, too, thereby making the operation cost-effective for its customer service.
Scalability
Outsourced call centers easily adapt to changes in demand and scale up or scale down accordingly. The trait becomes indispensable for a business experiencing seasonal variations in the requirement for customer service.
Access to Expertise
Third-party call centers specialize in customer service, having the necessary skill and technologies to handle the customers. This expertise can also imply improved customer satisfaction and retention.
Disadvantages of Call Center Outsourcing
Loss of Potential Control
With outsourcing, there is going to be reduced control over customer service, which will possibly affect the quality and consistency of the service delivered to the customer.
To address this potential issue: it’s important to choose the right partner and be a full partner in the operation. Once selecting a partner, businesses must continuously monitor quality and regularly meet to discuss progress.
Cultural and Communication Barriers
The language and cultural barriers create confusion and reduce the level of customer service, and this is even worse when offshore outsourcing is involved.
To address this potential issue: Clear communication and training or support for both organizations helps to avoid cross-cultural misunderstanding. Frequent honest conversation and establishing norms are essential.
Security Risks
Delivering sensitive data to a third-party service provider invites data breaches and security issues.
To address this potential issue: Ensure IT teams from both sides are involved from the beginning to establish security and connectivity requirements. Best practices include making sure internal and external teams use the same systems and have the same security teams and, as appropriate, restricted access.
Best Practices in Call Center Outsourcing Services
Selecting the Right Partner
Selecting the right call center for any given company is critical. Engage service providers that have the ability to prove their operations have sound security, a proven track record and experience in handling your business processes.
Smooth Communication
Clearly outline the communication methods and regular reporting so the outsourced call center meets your company's standards and goals. Provide clear ways of communicating with the contracted call center. Regularly report on the outsourced call to track its progress in meeting your company's standards and goals.
Quality of Service
Be sure to regularly check that the service meets your expectations in keeping customers happy.
Training and Integration
The outsourced team must be highly trained on the products, services and customer service principles of your business. Equally important is the need to integrate them within your ongoing CRM mechanisms and processes for smooth functioning.
Enhanced Focus on Core Business Functions
Outsourced call centers free you up to devote resources to your core activities. When you hire experts to handle customer support, your team focuses on other areas of the business, such as developing products, reaching markets and making strategic plans for enterprise development. This shift in focus and resources can speed innovation and strengthen your market position.
Impact on Small Businesses
Small businesses have few resources, making it difficult to establish an in-house call center. Outsourcing makes it more accessible to even small enterprises, allowing them to afford customer service that rivals that of larger companies. With the use of a professional call center, small businesses experience improved customer service without upfront investments in infrastructure and training.
Outsourcing Tailored to Business Needs
Inbound and Outbound Services
Call center outsourcing is not a one-size-fits-all solution. Companies can choose to offer inbound services such as customer support or outbound services such as customer callbacks, telemarketing and customer satisfaction surveys, all of which accommodate different needs and goals.
While inbound services involve solving customer queries and technical problems, outbound services involve contacting customers for follow-up, marketing or gathering feedback. Although some businesses can operate with either inbound or outbound support, many business operations would benefit from a blend of both, depending on their operational needs and customer engagement strategies. This would allow businesses to fill in the specific gaps where they need the most assistance, resulting in streamlined operations and improved customer interaction.
Customer Loyalty and Retention
A well-managed outsourced call center can increase the rate of customer retention. Agents with extensive training in customer engagement techniques will make each call an opportunity to strengthen the customers' loyalty. Outsourced centers can enhance customer loyalty by quick problem-solving and customized services. This is especially important in competitive markets where customer satisfaction generally dictates brand choices.
The Future of Call Center Outsourcing
While customers' expectations are increasing, call center companies are moving from simple question-and-answer interaction to the management of customer relationships. AI and machine learning pave the way for much more personalized, proactive and predictive solutions for servicing customers. In fact, businesses using these technologies through outsourced partnerships will see enhanced customer loyalty realize a competitive advantage.
Conclusion
Outsourcing call center requirements can significantly help in addressing business concerns. Businesses with outsourced call centers will have reduced costs and an increase in the quality of service provided. In turn, they will be able to devote more time to their core business areas.
By choosing appropriate contact center companies and properly collaborating with them, a company can improve its customer service operations. In turn, it can improve its overall business strategy and customer satisfaction.
At Blue Orbit Consulting, we specialize in helping organizations navigate these complexities. Whether you’re rolling out a new platform, integrating new capabilities, or just trying to keep your existing technology running smoothly, we’re here to help. Let’s work together to create a support model that keeps your contact center operating at peak performance.
If any of this resonates with you or your organization, take a moment to share this newsletter with your colleagues who may be struggling with similar challenges. Blue Orbit Consulting guides you through methods that will transform your contact center’s operations into a world-class customer experience.
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I founded Blue Orbit Consulting in 2014 after running staff organizations in contact centers and building consulting practices in customer service, process improvement, complex program management, and channel operations. My approach – and my firm’s approach – is fundamentally pragmatic, and our clients often achieve benefits in excess of 10x their investment. We develop and deliver world-class customer interactions for our clients, whether it is troubleshooting and optimizing what they already have in place or creating strategic transformations to deliver outstanding customer interactions every time.