As the competition continues to be tighter among businesses, providing top-notch customer service becomes more important than ever. Offering high-quality support allows the company to retain their customers and leverage their brand among others.

However, managing an in-house customer service team can be both expensive and time-consuming. You’ll have a lot more on your plate, which can take your attention away from more critical business matters. 

This is where outsourcing customer service comes into play. This has become one of the business trends in 2023, and for the right reasons. So, why is outsourcing good for customer service? We’re going to walk you through everything you need to know in this article.

What Does Outsourcing Customer Service Mean?

Outsourcing customer service is a business strategy where a company hires an external service provider to handle customer support tasks on their behalf. This can include a wide range of services such as phone support, email support, live chat support, social media management, and more. 

The outsourcing provider’s responsibility is to employ a team of dedicated customer service representatives who are trained to handle customer inquiries, complaints, and support efficiently and effectively.

Should You Outsource Customer Service?

Outsourcing customer service has become increasingly popular in recent years as businesses strive to reduce costs, improve efficiency, and enhance customer satisfaction. 

However, should you outsource customer service? Is it the right choice for your business? It’s a cost-efficient choice, but will you get your money’s worth? I’m sure you also have these questions in mind.

Here are some factors to consider to help you decide if your business is ready for outsourcing:

  • Capacity: Outsourcing can be an effective way to manage workload when a company lacks the resources or capacity to manage a certain task or project in-house. If a business is struggling to keep up with the workload or finding that its employees are stretched too thin, it may be time to consider outsourcing customer service.
  • Cost: Equipping your business with an in-house team of customer support agents will cost you around $2,800 per agent monthly. On the other hand, the cost of outsourcing to the Philippines is 70% lower than the said average monthly salary. If you’re looking to reduce your expenses and improve efficiency for your operations, this approach is the right choice for you.
  • Expertise: Businesses that require specialized skills or knowledge for their customer service team will find outsourcing as an easier and more accessible choice compared to building an in-house staff. 
  • Time constraints: Outsourcing customer service can be a time-saving solution for businesses that need to complete a project quickly. If a business has a tight deadline and does not have the capacity or expertise to complete the project in-house, this may be the best option.
  • Strategic focus: Outsourcing can allow a business to focus on its core competencies and strategic priorities. If you want to pay more attention to your core business activities and leave other tasks to third-party vendors, the approach at hand can help achieve this.

You should evaluate your company’s needs and priorities before deciding to make the most out of outsourcing customer service. If you related to most of the factors above, then the answer is a no-brainer: It’s time to outsource your customer support team.

What Are the Benefits of Outsourcing Customer Service?

There’s no doubt that outsourcing is good for customer service. But, if you’re still a little confused as to how this will help your business grow, let me walk you through the specific benefits you can get:

Access to Specialized Expertise

Outsourcing customer service provides businesses with access to a team of dedicated professionals with specialized expertise in handling customer inquiries, complaints, and support. These experts are trained to provide efficient and effective customer service, resulting in higher customer satisfaction rates and loyalty. 

Moreover, external service providers often have years of experience in the industry, so they already understand the best practices to handle customers with care and attention

Improved Service Quality

Another benefit of outsourcing customer service is improved service quality. Outsourcing agencies are often motivated to provide exceptional service to maintain their business relationships. 

Thus, by partnering with a reliable and experienced provider, businesses can reduce complaints and negative reviews, resulting in a positive brand image. The business will also be able to distinguish themselves from their competitors.

Cost Savings

Outsourcing is most popular for being cost-efficient. You will enjoy cost savings since there’s no need for expensive in-house infrastructure and equipment. 

Despite this, you can expect to benefit from the latest technology, tools, and management strategies. Ultimately, this can result in higher productivity and increased revenue. 

Focus on Core Competencies

By outsourcing customer service, businesses can focus on their core competencies and allocate their resources towards the other critical areas of their operations. This can result in better productivity, higher revenues, and overall business growth. 

Another thing, your business can also start offloading the burden of managing customer service,  and instead concentrate on your strengths and competencies.

What Are the Disadvantages of Outsourcing?

Outsourcing customer service there are also some disadvantages that should be considered before making the decision to outsource. Here are some of its common disadvantages: 

  • Quality Control: One of the biggest challenges of outsourcing is maintaining quality control. When work is outsourced to external providers, it can be difficult for businesses to monitor and ensure the quality of work being delivered.
  • Communication Issues: Communication is critical when outsourcing work. Since you’ll be working with a third-party provider, communication can be challenging due to language barriers and differences in time zone and culture.
  • Dependency: Outsourcing customer service can create dependency on external providers. Businesses may become too reliant on them to deliver work, which can create a risk if the external provider experiences issues or fails to deliver on time.
  • Security Risks: Outsourcing can create security risks for businesses. When sensitive information is shared with external providers, there is a risk that the information could be compromised, either intentionally or unintentionally.
  • Loss of Control: Lastly, outsourcing your customer support team can result in a loss of control over the work being delivered. When work is outsourced, businesses have less control over how the work is completed and may not have the same level of involvement in the process.

It’s important that you carefully consider the potential disadvantages before deciding to outsource. By taking steps to manage quality control, communication, dependency, security risks, and loss of control, you can minimize the potential disadvantages of outsourcing and maximize the benefits.

How Can Outsourcing Customer Service Be Successful?

The impact of outsourcing customer service is not the same for every business. How can you ensure that it will be a successful strategy for yours? Here are some tips: 

  • Choose the Right Partner: Choosing the right partner is crucial. Look for a company that has experience in handling customer service for businesses in your industry. Check the company's reputation, expertise, and track record to ensure that they can meet your needs.
  • Set Clear Expectations: It is essential to set clear expectations with your outsourcing partner. Clearly define the scope of the services you need, the quality of service you expect, and the metrics you will use to measure success.
  • Provide Adequate Training: Your outsourcing partner needs to be familiar with your products, services, and brand values. Provide adequate training to ensure that they understand your business and can provide excellent customer service.
  • Communication is Key: Communication is essential to the success of outsourcing customer service. Establish regular communication channels and schedule regular meetings to review progress, discuss feedback, and address any issues.
  • Monitor Performance: It's essential to monitor your outsourcing partner's performance regularly. Establish metrics to measure the quality of service they provide, such as customer satisfaction ratings, response times, and first call resolution rates.
  • Provide Feedback: Provide regular feedback to your outsourcing partner. Let them know what they're doing well and where they need to improve. Regular feedback helps them to adjust their service delivery and meet your expectations.
  • Continuously Improve: Continuous improvement is essential to the success of outsourcing customer service. Regularly review your outsourcing partner's performance, identify areas for improvement, and work with them to implement changes that improve service quality and customer satisfaction.

Outsource Your Customer Support Service Needs to the Philippines

Is your business struggling to keep up with customer service demands? Outsource your customer service to ManilaPros! 

At ManilaPros, we offer full-service, five-star customer care for retailers. We'll take care of everything for you, including offering all-around customer assistance, like responding to live chat, social media comments and messages, phone calls, and emails. ManilaPros has a proven track record of delivering exceptional customer service while reducing labor costs.

Let ManilaPros handle your customers’ needs, so you can focus on growing your business, developing new products or services, and exploring new markets. 

Contact us to learn more!