What is an outsourced call center?

Call centers handle inbound and outbound calls for customers or clients. If you’re currently answering phones and fielding customer inquiries yourself, you have an internal customer service team.

Outsourcing those duties means an external company that specializes in call center activities handles those calls. Companies that provide the service have lots of agents who field incoming calls or place outgoing calls for all types of businesses. When you outsource, those call center tasks take place without pulling your current employees away from their duties or requiring you to hire dedicated customer service staff.

Benefits of outsourcing a call center

Outsourcing business duties including customer service comes with many benefits for your company. Some of the perks of outsourcing a call center include:

• Cost effectiveness: Many outsourced call center options are more affordable than hiring in-house employees. You don’t have to provide a benefits package or pay a salary even when your customer service demands are lower. You also eliminate hiring and training costs.
• Focus on other activities: Outsourcing to a call center lets you focus on important business tasks. It’s an easy way to weed out customers who need some assistance without interrupting your other business activities.
• No turnover worries: When you hire internal customer service reps, you have to deal with employee turnover and absences, which can interfere with coverage. You get consistent coverage when you outsource without any downtime for hiring and training new reps.
• Easy scaling: Your call center needs may fluctuate, especially if you have a seasonal business. With a call center, you can ramp up coverage without hiring new call center reps. During slower times, it’s easy to scale down your coverage when you outsource without laying off employees or cutting hours.
• Flexible coverage: You can get call center coverage 24 hours a day easily when you outsource. If you hire in-house reps for 24-hour coverage, you’ll likely need to pay shift differentials and provide around-the-clock security, which can get pricy.
• Advanced technology: Companies that specialize in call center activities typically have the latest in technology for security and monitoring. You don’t have to pay for high-end software to handle those tasks or worry about upgrading with new advances.
• Faster customer service: Outsourced call centers have ample agents to take calls. If you hire internally, you’ll likely have a limited staff, which means there could be a long wait time for callers.

Drawbacks of outsourcing a call center

Outsourcing call center duties comes with some potential drawbacks. Consider these cons to ensure they aren’t deal breakers when deciding how to handle your customer service. Some drawbacks include:

• Less specialized knowledge: Outsourcing a call center means the people answering your phones will likely take calls for many companies. Since they’re not full-time employees, they don’t have specialized knowledge about your company and products.
• Less control: You won’t have control over who answers your company’s calls. You also won’t have control over the quality of service your customers get. While screening companies helps you find a high-quality option, there’s no guarantee the service will match your expectations.
• Language barriers: Many companies that handle outsourced call center duties are located in different countries. While the agents speak English, there can be language barriers, and customers may have difficulty understanding the agents’ accents.
• Decreased satisfaction: If the agents can’t answer questions or help customers appropriately, the experience leaves them dissatisfied. That can hurt your company’s reputation or cost you repeat business.
• Security risks: When you outsource, you give access to your confidential information to people outside the company. You’re relying on their security protocols, which may not be as strict as yours.
• Less loyalty: Outsourced customer service agents aren’t as invested in your company as in-house employees often are. They may not worry as much about providing exceptional service.

When to outsource your call center

Determining if outsourcing a call center is right for your company isn’t a simple decision. Your situation is unique and various circumstances can affect whether or not outsourcing is ideal.

Situations when outsourcing might be best include:

• Your call center volume fluctuates significantly.
• You’re on a limited budget.
• You currently handle customer service internally and it’s consuming too much time, but you’re not ready to hire a full-time employee.
• You don’t want to deal with hiring dedicated agents and dealing with staffing turnover .
• You need around-the-clock coverage.
• Your company’s phone calls aren’t influential in generating revenue.

When to handle customer service internally

Some situations are better suited for internal customer service. These include:

• Your product or service is highly specialized and requires technical knowledge to explain.
• You want complete control over the call center process and employees.
• Phone calls are crucial for generating revenue.
• You have a consistent call volume that justifies hiring full-time employees.
• You work with highly sensitive information that needs the highest level of security.

FAQs about outsourcing a call center

How do you choose a company for outsourcing?

Create a budget for outsourcing to help you compare the options. When looking at the pricing, check for hidden fees or upcharges for some services, such as customer service via email and chat. Decide if you want to hire a U.S.-based or overseas company. An international company is typically less costly, but some consumers don’t like talking to customer service agents with strong accents. Consider the values and priorities of companies you’re considering to ensure they align with yours. Review the available services and the terms of the agreement.

How do you manage outsourced customer service?

Set your expectations before hiring a company. Find out how the provider handles specific situations and review all contracts and agreements. Ask about monitoring services that the company provides, so you can check on the quality of service your customers get. Weekly check-ins and call reviews can help you determine if the service meets your standards. If you notice an issue, immediately bring it up in a straightforward and professional way. Treating the company like a business partner instead of a vendor can help build a stronger relationship and result in better service.

Do you have to outsource all call center tasks?

You can choose the tasks you want to outsource and which ones you want to keep in-house. You might choose to outsource lead generation and appointment setting but keep help desk and inbound sales internal, for example. This allows you to outsource less important tasks while keeping crucial tasks in-house. If you’re unsure about outsourcing, start with one aspect of your customer service to see how that goes. You can transition to outsourcing more duties if it goes well.