The rapid pace of globalization and advancements in technology have transformed the way businesses interact with their customers. As companies strive to meet rising customer expectations while optimizing their operations, the decision to outsource call center services has become a critical consideration. <iframe width="560" height="315" src="https://www.youtube.com/embed/BTTHT87i5IU" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

Outsourcing offers enticing benefits such as cost savings, access to specialized expertise, and scalability. However, it also presents challenges and potential drawbacks that demand careful evaluation. Today, we’ll discuss the pros and cons of outsourcing your call center, and how you can use it to achieve success for your business.

What Are the Pros of Outsourcing Your Call Center?

According to Zippia, 66% of US businesses outsource at least one department. This says a lot about how outsourcing is a preferred strategy for streamlined business operations. That said, what are the pros of outsourcing your call center? Below are the things you can expect. 

Reduced Operating Costs

Outsourcing call center professionals can lead to reduced operating costs. Unlike setting up and maintaining an in-house call center, you can avoid incurring expenses, such as infrastructure costs, equipment purchases, software licenses, and employee benefits. 

Outsourcing providers often operate in developing countries like the Philippines. This means having access to lower labor costs, allowing you to have skilled agents in your team for lower hourly rates. There’s also no need to spend on infrastructure, equipment, and additional call center technology since you won’t have to provide office space for the offshore team.

Specifically, businesses can expect to save around 70% to 90% on operating costs if they outsource to the Philippines.

Learn more about the true cost of outsourcing customer service to the Philippines.

Allows Scalability and Flexibility

Outsourcing your call center will allow your business operations to be more scalable and flexible. You will find it easier to scale your operations up or down based on your business needs and season. This will also help the business provide exceptional customer service since there's no need to overload agents with incoming calls.

The strategy is especially advantageous for businesses with changing operation levels. During peak periods or promotional campaigns, you can easily ramp up the number of agents to handle the increased call volume. Similarly, during slower periods, you can scale back without the burden of maintaining a large in-house team. This scalability allows for efficient resource allocation and cost management.

Better Focus on Core Business Operations

Leaving your call center functions to an outsourcing provider allows you to better focus on your core business operations and strategic initiatives. This also means that you can allocate your internal resources and expertise to areas that directly impact your business growth. These include securing client deals, product or service improvement, marketing, and the like. 

Since you have more time and resources directed to your core competencies, you can also expect improved efficiency and productivity for your business due to better call center agent performance. 

Option for 24/7 Customer Support Availability

Because most outsourcing providers offer round-the-clock operations, you have the option to provide customer support outside of regular business hours. This is particularly beneficial for businesses that cater to inbound and outbound calls from customers in different time zones. 

The 24/7 availability will also help enhance customer satisfaction and loyalty by ensuring timely assistance and responsiveness. This will be good for global companies looking to provide more accessible support for their market. 

Access to Advanced Technology

Outsourcing providers invest in the latest call center technologies and software solutions to deliver efficient and effective customer service. 

So, by delving into this approach, you can leverage their technology infrastructure without the need for actually buying various software and equipment. This will result in significant cost savings because there’s no need to make upfront investments. 

Some of the tools you can access through outsourcing are customer relationship management (CRM) systems, call recording and monitoring software, predictive dialers, and interactive voice response (IVR) systems, all directed at improving call center agent performance.

What Are the Cons of Outsourcing Your Call Center?

Despite the benefits that come with outsourcing, the strategy also comes with consequences. If you work with an inefficient outsourcing provider or you don’t implement the right strategies, there may be more bad results than good ones. Let’s take a look at the possible cons below.

Potential Quality Inconsistencies

Outsourcing your call center introduces the possibility of inconsistent service quality. The provider may have different agents work for you, depending on factors like availability and schedule. Even if they do have a fixed call center team for your business, the performance of the outsourced agents may still vary.

That said, you should expect inconsistencies in customer service quality when it comes to customer phone calls. This can negatively impact customer satisfaction and brand reputation. Close monitoring and regular performance assessments of the outsourced call center are essential to maintain quality standards.

Possible Lack of Transparency in Pricing Structures

While outsourcing can provide cost savings in terms of labor and infrastructure, there may be hidden costs associated with the pricing structure of the outsourcing provider. 

Additional charges for extra services, system upgrades, or changes in call volume may arise. If you’re not properly oriented about the fees, you may have an unexpected increase in your overall expenses. 

It's crucial to have a clear understanding of the pricing model and any potential hidden costs before entering into an outsourcing agreement. You should also ensure that the outsourcing provider that you’ll work with guarantees transparent rates.

Limited Customization and Flexibility

Compared to managing an in-house team, you’ll need to adopt already-existing standardized processes when it comes to outsourcing your call center. This may limit your ability to customize customer service approaches, implement specific workflows, or adapt to changing business needs. 

Although you can’t really prevent this from happening, you can look for an outsourcing provider that offers the level of flexibility and customization that you need. You should also lay out all your unique requirements beforehand to know if they can cater to your call center needs or not.

Presence of Communication-Related Challenges

Communication-related challenges are one of the most common cons when outsourcing your call center. There are issues like misaligned expectations, lack of responsiveness, and misunderstandings brought by differences in accent, culture, and business practices. 

The problem can happen between all the parties involved in the strategy. These include you, the outsourced team, your current in-house departments, and your customers. Consequently, your business can come across issues, like frustration, reduced customer satisfaction, and negative brand perception. 

You can mitigate this risk through proper training, cultural sensitivity, and accent reduction programs.

Loss of In-House Expertise

Outsourcing your call center means transferring the responsibility of customer service to an external provider. This may result in a loss of in-house expertise and skills related to customer service management. 

Because of this, there’s a possibility that your internal team may become less proficient in handling customer inquiries and resolving issues. You can organize regular knowledge-sharing and training programs to manage this challenge.

How Do You Ensure Business Success With Call Center Outsourcing?

Outsourcing your call center doesn’t guarantee success. If you want to take advantage of its advantages, you have to make sure that you implement good strategies. Here are some things that you can do to ensure business success with call center outsourcing. 

Be Transparent

It’s important to be transparent with what you want to achieve in the outsourcing engagement. Clearly communicate your expectations, business objectives, service level agreements (SLAs), and key performance indicators (KPIs) with the outsourcing provider. You should also establish specific goals and metrics to help align your partner's efforts with your desired outcomes.

Establish Communication Requirements

Communication is one of the most important factors that you need to work on to make outsourcing a success. Start by establishing communication channels. Choose a specific platform where you and your outsourcing provider will regularly communicate. You should also organize regular schedules for specific meetings and updates. 

Invest Time in the Onboarding Process

You won’t personally handle your call center functions, but you still need to invest time and resources during the onboarding process. Doing so will help the outsourcing provider get a clear view of your business and its operations. You can do this by providing comprehensive training and onboarding to the outsourced call center agents. 

Continuously Monitor and Evaluate

Your responsibility doesn’t end after the onboarding process. You still need to regularly assess the outsourcing provider’s performance, how your customers are reacting to the outsourced agents and the overall business impact of the strategy. Doing this will help you identify areas for improvement, address any challenges promptly, and make adjustments to optimize the outsourcing partnership. You should also implement quality assurance measures beforehand for better evaluation.

Choose an Outsourcing Provider Carefully

The outsourcing provider that you’ll work with will heavily affect the success of your outsourcing strategy. So, make sure to choose an outsourcing provider carefully. Conduct thorough research and due diligence when looking into firms and companies. You should also assess their experience, expertise, track record, and other important factors to know if they can meet your requirements. Acquaint yourself with the usual outsourcing issues before you choose a service provider.

Work With a Trusted Call Center Outsourcing Company in the Philippines

Are you looking for a call center outsourcing company that offers scalable and high quality for significantly lower rates? Outsource your call center needs to the Philippines!

At ManilaPros, we offer full-service, five-star customer care services for retailers in need of an effective and high-performing call center team. Our customer service agents are experts in providing multichannel support, including phone, live chat, email, and social media, so you can guarantee efficient customer assistance. 

Do you want to know more about our customer care services? Contact us today to learn more.