A 2023 study by blackbear shows that customer service holds the fifth position among the top 12 outsourced services by businesses. With many major companies outsourcing their customer service today as a way to reduce costs, expand their business operations, and improve efficiency, we see how outsourcing has become a significant game-changer in the business world. 

So, if your business is thinking about outsourcing but is still unsure about which customer service outsourcing company is the best, this article is here to help you explore how businesses like yours choose the best customer support outsourcing partner.

Understanding When and Why to Outsource Customer Service

Taking the leap to outsource parts of your business can feel like a big move, and it's common for companies to hold back. But as someone who's in charge, your job is to make sure everything runs as smoothly as possible. That means you have to keep an eye out for signs that it might be time to get some outside help.

Are you wondering if your business operations need a customer service outsourcing company? Here are some indicators to help you make up your mind.

1. Your Business Is Rapidly Growing

Experiencing a rapid expansion in your customer base can be quite a thrilling experience. However, this growth can bring some unique challenges for your business. Many companies in this situation find that they need some extra help, which is a clear signal that it might be time to opt for customer service outsourcing services.

When your customer base is on the rise and you’re looking for new strategies to keep up, you need to understand that there are notable differences between building an in-house team and hiring offshore staff. Additionally, keeping up the quality of customer service can be tough when you're dealing with a high volume of inquiries and support requests. That's precisely the point when customer service outsourcing becomes a viable solution.

By doing this, you can make sure your customers still get excellent support while allowing your core team to focus on the more strategic aspects of your business, which can help it keep on growing.

2. You Need to Cut Expenses

It's widely recognized that outsourcing offers a significant benefit in terms of cutting costs. In today's uncertain economic environment, many companies are placing a strong emphasis on outsourced customer support as a vital strategy. This is due to its potential to help businesses effectively manage their budgets and resources, which has become increasingly crucial in the face of economic instability.

When we talk about outsourcing, we're essentially referring to the practice of delegating certain tasks or functions to external service providers. This can include customer service, among other functions. In the context of our current business landscape, where financial prudence is paramount, outsourcing customer service can be a strategic move. It allows companies to streamline their expenses while still maintaining a high level of service quality.

By understanding your customer service needs and exploring outsourcing as an option, you can navigate economic uncertainty more effectively and ensure your business remains resilient in challenging times.

3. Providing Desired Customer Service Has Become Challenging

In the modern business landscape, the significance of impeccable customer service cannot be overstated. It has become an important factor in determining a company's overall success. When the demands of delivering exceptional customer service become daunting and start to overwhelm your team, it may be a clear signal that it's time to outsource customer service.

Nowadays, customers expect seamless communication and rapid responses, and meeting these expectations can be a formidable challenge when your staff is stretched thin with various responsibilities. It's important to note that to outsource customer service doesn't necessarily mean delegating all your tasks to a generic personal assistant. Instead, delegating your operations to a customer service outsourcing company can provide a tailored solution, ensuring that client inquiries and emails are handled efficiently, and allowing you to focus on your core tasks.

4. Sales Is Having a Downturn

Deciding when to use customer service outsourcing can be a bit tricky, but it becomes more crucial when your sales numbers aren't looking too great. When you notice your sales taking a hit, it's a signal to dig deeper and figure out what's going wrong. It could be due to various issues within the customer support team setup like customer support staffing issues which make you lose customers.

To get to the bottom of it, you need to gather and analyze relevant data. If you discover that you're short on staff or struggling with time management, these could be the main culprits behind your sales slump. In these scenarios, considering customer service outsourcing by collaborating with specialized external firms might be the solution. These outsourcing service companies specialize in specific industries, so you can count on them to deliver high-quality service that aligns with your customer service goals, helping you get back on track and provide the service your customers want.

5. Meeting Client Expectations Has Become More Challenging

A crucial factor to consider when contemplating hiring a customer service outsourcing company is when you struggle to maintain customer satisfaction and meet your client's expectations.

Here's the deal: When your company is booming, and more and more folks are turning to your products or services, that's a good sign. It means people trust your brand and rely on you to meet their needs. But if you start struggling to consistently meet those high expectations, it's time to take a good look at how you're doing things. That's when you should seriously think about outsourcing.

By letting external experts handle certain parts of your customer service, you can free up your resources to better serve your clients, making sure their expectations are not just met but exceeded.

Key Factors to Consider When Outsourcing Customer Service

Many companies, regardless of their size, turn to outsourcing for various business functions. They may opt to outsource either a significant portion of their operations or just a few specific tasks, all in a bid to concentrate on their core business priorities.

In both scenarios, it's crucial for these companies to consider key factors that will guide their decision-making process.

Cost Efficiency

When it comes to partnering with a customer service outsourcing company, a crucial aspect to consider is its impact on your business's cost efficiency. In simple terms, outsourcing should contribute to improving your bottom line by cutting down on operational expenses.

If this cost-saving element doesn't seem to be on the horizon, it's important to take a step back and evaluate your outsourcing strategy. It doesn't require a deep dive into financial analysis; instead, it's about assessing whether outsourcing can significantly reduce your spending on hiring staff and equipment.

However, it's essential to strike a balance between cost reduction and the quality and quantity of services delivered by the outsourced customer service team or firm. It's a delicate equilibrium where you aim to save money without compromising on the level of service your customers expect and deserve.

Pricing Structure

Many businesses turn to outsourcing customer service as a means of cost-cutting, often seeking affordable talent to handle their needs. This pursuit of cost-efficient solutions frequently leads to a myriad of customer service companies offering competitive pricing structures. However, it's essential to remember that while cost is a crucial consideration, it should not stand alone as the sole determining factor when selecting an outsourcing partner.

Instead of simply opting for the cheapest customer service outsourcing provider, it's wise to take a broader view and compare what different vendors bring to the table. Some service providers not only offer cost-effective services but also provide additional value, such as complimentary customer support, which can be a significant advantage in its own right. This underscores the importance of evaluating the complete package – looking beyond the price tag to ensure that the customer service outsourcing partner aligns with your specific needs and overall business goals.

For more insights, check out the true cost of outsourcing customer service every business should know.

Resource and Technology

When it comes to the crucial factors to weigh when deciding to outsource your customer service, you can't overlook the significance of technology and resources. These are fundamental elements that should guide your selection process.

You'll want to have a candid conversation with your potential outsourcing partner about the tools and technologies they intend to employ for your project. Understanding their technological capabilities is key to ensuring they can effectively meet your outsourcing requirements. 

Additionally, don't forget to inquire about their resources. Are the individuals who will be handling your assignments well-trained and equipped with the necessary skills? It's essential to know that your outsourcing partner has a team that can skillfully manage the tasks you entrust to them.

Moreover, consider whether the vendor operates from a well-equipped office with up-to-date systems that can handle the most demanding aspects of your outsourcing needs. These questions are not just inquiries; they're the path to finding the right vendor who possesses the optimal blend of resources and cutting-edge technology to seamlessly manage your business functions.


Before you commit to any outsourcing agreement, it's vital to take some practical steps to gauge the reliability of your chosen service provider. First, consider paying a visit to the vendor's physical location if possible, as this can provide valuable insights into their operations. 

Additionally, conduct thorough online research to gather information about the customer service outsourcing company, including its infrastructure, safety protocols, and the team behind it. These efforts will enable you to assess the provider's reliability more effectively.

Furthermore, if you have contacts or references who have previously collaborated with the service provider, it's a great idea to reach out to them for firsthand feedback.

The Service Level Agreement (SLA)

When you're thinking about outsourcing your customer service, the Service Level Agreement (SLA) is a document you can't afford to overlook. This agreement is like the backbone of your outsourcing partnership, so when you're drafting it, precision is key.

You want every detail in there to be crystal clear. Why? Well, it's all about avoiding any potential confusion or uncertainty, especially when it comes to the quality of the services you'll be receiving. It's a good idea to consider getting a lawyer involved in managing your outsourcing arrangement.

They can help ensure that everything in the SLA is legally sound, helping you steer clear of any legal issues down the road. So, in a nutshell, the SLA is your go-to guide for a smooth outsourcing journey, and clarity is your best friend in making it work effectively.

Choosing the Best Customer Service Outsourcing Company

When choosing a service provider to trust your business with, being aware if their reputation aligns with your brand is of utmost importance. It is not enough that they can provide you the services you need but, the best provider has to be able to connect with your brand identity. There will always be companies that can offer you outsourcing services but, finding the right one is the real challenge.

In your search for the right partner among the best customer service outsourcing companies in the market, here's what you should consider.

Industry Knowledge

When you're on the hunt for the ideal customer service outsourcing partner for your needs, their industry know-how becomes a critical factor. It's not just about hiring any company; it's about finding one with the right experience to handle your clients effectively.

An outsourcing customer service company's track record and reputation should instill confidence that they're up to the task. You want an outsourcing firm that aligns with industry standards that match your business needs.

Don't forget to assess the expertise of their staff and customer service representatives, as they will be the ones interacting with your customers. It's like assembling a dream team to represent your brand, and their knowledge and skills are the key to making that customer service magic happen.

Expertise in Technology

When you're in the process of selecting the right customer service outsourcing company, it's essential to take their technological expertise into account as a key factor. You want a customer service partner that's not just proficient but excels in technology because that's what keeps your business running smoothly.

Customer expectations are always on the move, and they expect you to keep up with the latest tech trends. That's where your outsourcing decision comes into play. To make sure your customer service runs like a well-oiled machine, you need to make sure your potential partner knows their tech stuff inside out. This way, you can trust them to not just keep up but stay ahead of the tech curve, which can be a game-changer for your business.

Proven Track Record

Choosing the right customer service outsourcing company for your project is paramount, especially when it comes to managing customer expectations and answering their questions. You see, the future success of your project hinges on how well this company can handle these tasks.

What you're really looking for is a partner with a proven history—someone who's consistently shown they can tackle tough problems and stay afloat even when the market gets shaky. This kind of experience demonstrates that they can adapt and perform well under stress, making it easier for you to trust them with the ins and outs of customer service.

By aligning with a trustworthy customer service outsourcing partner, you enhance the likelihood of efficiently resolving customer concerns, eliminating redundant steps that might otherwise muddle the process.

Data Protection

When you decide to outsource customer service, it's essential to think about how to keep your data safe and secure. You're essentially handing over sensitive customer information to another company, and if they don't have robust security measures in place, that data is at risk of being exposed or stolen.

So, before you make your choice, look for an outsourcing agency that's up-to-date with the latest security protocols. Don't just stop there; ask how frequently they update their security and privacy practices. Regular updates are a sign that the agency is proactive about preventing data leaks and is prepared with backup and recovery plans in case of emergencies.

Strategic Partnerships

Forming strategic partnerships can be a game-changer for businesses if done the right way. For example, many companies that specialize in customer service outsourcing often team up with other firms that are experts in areas like testing, consulting on methods, marketing, and even disaster recovery. These collaborations aren't just for show; they provide real value.

By understanding and integrating these partnerships into your own services, you can streamline operations and make tasks that aren't your main focus much more manageable. So, it's not just about what your business can do on its own, but also about how well it can work with others to provide a comprehensive, efficient service.

Employee Training and Growth

When you're choosing the best customer service provider, it's crucial to look at how well their employees are trained and how much they focus on ongoing development. The key to excellent performance often lies in the best customer service training. After all, these are the people who will be interacting with you and your customers.

They should be well-equipped to handle critical issues smoothly, which can only happen through comprehensive training and development programs. The best customer service training not only teaches them how to deal with complex problems but also keeps them in the loop about the latest trends, technologies, and tools. This continual learning environment inspires the team to give their best, which ultimately leads to better service for you and the customer experience for your customers.

Quality Control

When you're searching for a company to handle your customer support needs through outsourcing, it's vital to find one that places a strong emphasis on quality assurance. You want a partner that not only has established procedures in place to make sure their service is top-notch, but also continually updates these measures to stay at the forefront of excellent customer care.

Don't settle for a company that's stuck in its ways. Make sure they regularly refresh their quality checks and security measures so that you get the most bang for your buck and ensure a successful project.

Tips for Outsourcing Your Customer Service

Outsourcing can free you up to focus on what your business does best, but it also means letting go of some control. To make sure things go smoothly, it's important to follow some best practices when you're handing over your customer service to another company.

Here are some tips and guidelines for successfully outsourcing your customer service operations.

Thoroughly Prepare

When you're thinking about outsourcing, don't rush the decision. Take the time to really understand what you're looking for and make sure you're on the same page as the service provider you're considering. It's crucial to be clear about the terms of your working relationship from the get-go.

Things like service-level agreements spell out what you can expect in terms of quality and response times, while non-disclosure agreements protect sensitive information. So, before you jump in, get these important documents in place to ensure everyone understands their roles, responsibilities, and expectations. This preparation can save you a lot of headaches down the road.

Invest Time and Effort in the Relationship

Having a successful outsourcing partnership isn't just about delegating tasks and forgetting about them; it's a two-way street that requires strong teamwork and adaptability from both sides. To make sure everything runs smoothly, you can take advantage of various tools designed to help with collaboration and project management. This helps you stay organized and in the loop about what's happening, which is crucial for maintaining control over your business operations. 

But don't forget, while the vendor may be in charge of handling customer service or other specific functions, it's still your responsibility to actively manage the ongoing relationship. Keeping the lines of communication open and regularly checking in ensures that everyone stays aligned with the project's goals and your company's broader mission.

Commit to the Long Term

Sticking with the same service provider for an extended period not only ensures smooth operations but also enhances customer satisfaction. When you're constantly switching vendors, it's like throwing a wrench in the gears—everything gets disrupted, and operations can come to a grinding halt. But when you build a strong, enduring relationship with a single provider, the benefits are enormous. You understand each other's processes and expectations, making everything run more smoothly.

This kind of long-term partnership often yields far greater rewards than any short-term arrangement could ever offer. It's like investing in a good friendship; the longer you nurture it, the more valuable it becomes.

Remain Flexible

Before your contract period is up, it might be a good idea to take another look at the terms. Having a flexible agreement can actually be a win-win for everyone involved. On one hand, it gives the service provider the room they need to try out new approaches and solutions. On the other, it allows you the freedom to make adjustments as your situation changes.

So, you're not locked into something that doesn't make sense for you anymore. In essence, a flexible contract keeps the door open for innovation and adaptation, ensuring that both you and the service provider can thrive, even as circumstances evolve.

Monitor Performance

When you outsource customer support, you'll likely see some obvious financial advantages, like cost savings. But remember, the benefits aren't just about money. You should also consider factors that are a bit harder to put a number on. For instance, think about how quickly customer issues get resolved the first time they call, known as the first call resolution rate. Or consider whether customer service overall seems to be improving, contributing to enhanced customer satisfaction.

Take a look at whether mistakes are happening less often, and if your products or services are hitting the market quicker than before. And don't forget about your team—use time-tracking and monitoring software to see how individual agents are performing. By looking at all these elements, you'll get a complete picture of how outsourcing is affecting your business.

Develop a Clear Exit Strategy

Make sure that your contract, along with the service-level agreements (SLA), spells out a straightforward plan for how to wrap things up if the business relationship ends. The SLA should clearly explain how the work or services will be transferred back to your own team if you decide to take it in-house. In addition to that, the contract should be crystal clear on who gets to keep what—like equipment or any other assets—once the partnership is over.

In the end, there should be no confusion about the payment terms. Knowing exactly when and how much is due will establish a sense of clarity and assurance to all parties involved. Just like how all businesses work, proper and clear communication between a company and an outsourcing provider is a must to avoid any complications and save everyone a lot of headaches down the road.

Work with an outsourcing partner that wants the best for your customers!

Selecting an outsourcing partner who puts your customers first is a crucial step when building an offshore customer service team. Choose a reliable company that understands the importance of building lasting customer loyalty and ensuring stable revenue for your retail business, just like we do at ManilaPros!

At ManilaPros, we offer full-service, five-star customer care for retailers to help meet the needs of your customers. With our years of industry experience, we will provide you with multichannel support including phone, live chat, email, and social media —  starting at $9 per hour.

Contact us today and experience five-star customer care!