WHAT ARE THE PROS AND CONS OF CALL CENTER OUTSOURCING?

It is a strategic business decision to leverage a 3rd party BPO company to manage your call center and customer service operations. Call center outsourcing has acquired a lot of attention in recent days as more companies leverage business process outsourcing to manage their customer needs. Renowned industries like Hershey Foods, Time Warner Inc., and The Wall Street Journal have created headlines by claiming to have outsourced part of their call center workforce to slash in-house costs. On the other hand, industry giants like Capital One and Dell stated that they had eliminated their call center outsourcing operations as the costs outweighed the benefits. So, the debate rages on about whether or not offshore outsourcing is beneficial for businesses, and some industry heads are picking sides.

These opposite viewpoints make it clear that the decision to outsource part or all of your business's call center operations to a company should not be taken lightly. Mentioned below are the few Pros and Cons of offshore outsourcing and the best of both world solutions that many organizations can benefit from. This blog post can be a useful first step when deciding whether or not call center offshore outsourcing is right for your company.

Offshoring Defined

Call center outsourcing to offshore locations is the strategy of obtaining a BPO service provider located outside the US to operate and manage your call center operations. The BPO service provider usually hires, and trains call center agents, manages office infrastructure, maintains call center software, and all other day-to-day operations. Companies can outsource a segment of their call center operations (like sales, marketing, support, market research, etc.) or outsource the entire in-house call center operations. Once the decision has been taken to outsource and the contracts are signed, many companies take a hands-off approach to overseeing their operations and trust that their BPO partner will take the reins.

PROs of Offshore Outsourcing-

1. Minimized costs: Supporters of outsourcing offshore claim that it significantly helps in reducing or eliminating the overhead costs associated with running an in-house call center. When call center infrastructure, operational, labor costs, and overhead are reduced (or being managed by an external service provider, the savings can be very significant. Moreover, with the cost savings, businesses can invest the money in other core operational duties.

2. Eliminate staffing issues: BPO companies typically handle all the staff training, hiring, scheduling, and managing of a team of call center agents. This can help your company save time, money, and resources.

3. All-day round customer support: Outsourcing call center functions often allows companies to provide their customers with round-the-clock support. With available call center agents to answer their queries 24/7, no customers remain unsatisfied with the services of their preferred company.

4. Manage call volume: Outsourcing part of your call center operation to a BPO service provider (that is solely responsible for answering overflow calls during periods of high call volume) can be a beneficial solution to an expensive problem.

5. Increase business continuity: When your outsourced call center service provider guarantees 100% uptime, has servers located in various geographic locations, and has staff dedicated to making sure call quality is outstanding round the clock, you can be more confident with their ability to meet your customer's needs.

Cons of Offshore Outsourcing-

1. Decreased Customer Satisfaction: In a recent study executed by researchers from MIT Sloan School of Management stated that offshore outsourcing in call centers results in a significant decrease in service quality and customer satisfaction. This is due to a combination of all or some of the factors listed below.

2. Cultural and Linguistic Barriers: Call center agents overseas may lack the cultural knowledge, communication skills, and fluency that is necessary to provide excellent customer support.

3. Reduced Control Over Business Functions: When a business is outsourcing its call center operations to a BPO company, you are putting vital business functions in the hands of a stranger. Therefore, it may be more difficult to monitor quality assurance and put policies in place to increase customer experience and satisfaction.

4. Less Company Knowledge: Outsourced agents in a caller center are often unfamiliar with the company culture, values, and practices. They, therefore, may not be entirely dedicated to the company, devoted to the customer, or offer the level of service that is in line with company standards and reflects the company culture.

5. Divided Focus: Call center agents working in the BPO companies are often assigned to make inbound and receive outbound calls for multiple clients. Thus, their attention span and time may be divided, and they may never be able to be completely devoted or passionate about your company.

6. Hidden Costs: When a business outsources its call center operations to a BPO company, hidden costs often exist that cannot be overlooked. Costs associated with unforeseen legal issues, hiring a lawyer who is an expert in dealing with legal issues, losing customers due to poor customer service, and the cost of regaining lost customers can all significantly impact your bottom line.

7. Privacy Concerns:  Overseas call center agents are often not subject to the same background checks that US-based agents are. Therefore, sensitive or confidential information may be less secure than with local agents who have undergone a strict background check. 

Best of Both Worlds

If outsourcing your in-house call center operations to an offshore provider seems tempting but not worth the risk, you should probably consider a simpler, more cost-effective solution. Hiring a team of global call center agents who work remotely can be a "best of both worlds solution." It can allow you to leverage some of the advantages that make outsourcing call center agents so luring and mitigating the disadvantages of outsourcing.