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Home » Articles » Outsourcing Customer Service

Outsourcing Customer Service

Table of contents

Pros

Cons

Inbound services

Outbound services 

Helpdesk 

Technical support 

Non-voice support 

Virtual receptionist

What is outsourcing customer service?

Outsourcing customer service means hiring an external provider to handle your support tasks, so you cut costs and tap expert help while you focus on core work.

  • It covers inbound calls, outbound calls, helpdesk, technical support, and chat.
  • As a result, you save on labor while keeping quality high.
  • For example, the Philippines offers skilled, English-fluent teams at a low cost.

Outsourcing customer service has become a smart move for many businesses. So they can boost efficiency and cut costs at the same time.

By handing support tasks to external providers, companies focus on core work. Meanwhile, their customers still get top-notch help. As a result, this approach manages labor costs and opens access to expert skills and technology.

Hiring a customer service team through business process outsourcing lets you build a team while you save on labor costs. In addition, overseas teams often offer affordable solutions without lower quality.

The Philippines is one of the most popular outsourcing countries in Asia for customer support. The country has a skilled workforce, strong English skills, and cultural fit with the West. As a result, it is a great outsourcing destination.

In this blog, we cover the benefits of outsourcing customer service, key points to weigh, and how it can transform the customer experience.

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Customer support

Solopreneurs and startups usually handle inquiries on their own at first. But as their business grows, their customer base grows too. So handling inquiries gets harder. As a result, they need an easier, cheaper way to build a support team.

Hiring a call center for their support team saves them time, energy, and money. In a support outsourcing setup, the provider sets up a dedicated team. So they equip the team with the latest tools. In addition, they cover employee needs, such as salaries, benefits, and training.

Customer support
Customer support

Pros and cons of outsourcing customer service

Outsourcing customer service has its pros and cons. However, you can lessen risks with enough prep and proper management.

ProsCons
Saves up to 70% on costsLack of quality control
Multi-channel servicesData confidentiality
Enables 24/7 coveragePotential hidden charges
Customer service specialistsDifficulties in accents

Pros

  • Saves up to 70% on costs. The provider covers the cost of setting up a team, such as office space, equipment, and tools. In addition, they manage salaries, benefits, onboarding, and training.
  • Multi-channel services. Agents are trained to use many channels. So they respond with speed and accuracy to serve more customers.
  • Enables 24/7 coverage. The workforce is flexible with shifting schedules. As a result, they can serve you 24 hours a day, seven days a week.
  • Customer service specialists. The Philippines has over two decades of customer service. So businesses can tap into an experienced workforce.

Cons

  • Lack of quality control. Since a third party runs the operation, some businesses worry about control over call quality.
  • Data confidentiality. Agents deal with customer data daily. As a result, there might be a possible data breach or other security concern.
  • Potential hidden charges. Some providers add charges not in the initial proposal. So businesses might pay more than agreed.
  • Difficulties in accents. Customers may be confused by an agent’s accent. As a result, this can cause miscommunication between the two parties.

Customer service roles you can outsource

Outsourced customer service covers many roles. These range from traditional call handling to non-voice channels, such as email and chat. Below are some popular roles that people outsource. For a deeper look, see these call center services you can offshore.

Inbound services

Inbound call center services handle many parts of customer interaction. For example, inbound agents manage inquiries, feedback, and complaints. So they offer detailed information about products or services. As a result, they help customers resolve issues with alternative solutions.

Customer service roles
Customer service roles

Outbound services

Outbound call centers reach out to customers for many reasons. For example, this role involves the following:

  • Introducing new promotions and services
  • Reminding customers of billing due dates and past-due accounts
  • Conducting customer satisfaction surveys

The main focus is to engage customers proactively. As a result, they improve the experience and gather feedback.

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Helpdesk

Helpdesk services are a special form of inbound support. So they address customer issues with products and services. Helpdesk teams help customers find solutions to their problems. As a result, this role ensures customer satisfaction by resolving issues fast. You can also explore outsourced help desk services for more.

Technical support

Technical support troubleshoots hardware, software, or website issues. For example, the team under this role usually does the following:

  • Handling concerns such as login problems
  • Installing and uninstalling software
  • Resolving server issues
  • Providing guidance on the proper use of devices

As a result, technical support helps customers use products and services with ease.

Non-voice support

Non-voice support focuses on channels like live chat, email, or social media. Instead of phone calls, agents help customers through written messages. As a result, this approach gives flexibility. So it suits customers who prefer text-based help.

Non-voice support
Customer service roles

Virtual receptionist

Virtual receptionists are popular in the hospitality industry. So they play a key role in helping guests. These receptionists interact through voice or live chat. As a result, they serve as the first point of contact for inquiries, reservations, and general help.

Top companies to outsource customer service

The Philippines is a great option for customer service outsourcing. Most providers there specialize in inbound, outbound, and non-voice services. In addition, they serve many sectors. Strong customer service skills are a big reason these teams stand out.

Check out the Top 40 BPO Companies guide to find out more. You can also review popular contact center outsourcing services and the latest customer service outsourcing trends before you decide.

Outsourcing customer service: FAQs

Let us address frequently asked questions about outsourcing customer service.

What is an outsourcing service?

An outsourcing service means you hire external companies or people to handle certain tasks. These tasks could be done in-house. For example, they include customer support, IT, accounting, and marketing.

Businesses often outsource to cut costs, access expert skills, and focus on core work. As a result, companies can streamline processes and lift overall productivity.

Is it cheaper to outsource customer service?

Yes, outsourcing customer service is often cheaper than an in-house team. By using overseas providers, businesses cut labor costs. In addition, they save on hiring, training, and staff upkeep. However, always balance cost savings with quality of service.

Do most companies outsource customer service?

Yes, many companies outsource customer service to boost efficiency and cut costs. So this lets them use external skills and resources without heavy overhead. Not every company outsources. Still, it has become a common approach across many industries.

Which channels can I outsource?

You can outsource many channels. For example, these include voice calls, email, live chat, and social media. As a result, you can offer support wherever your customers are.

How do I keep quality high with an outsourced team?

Start with clear expectations and regular reports. In addition, track key metrics and give feedback often. As a result, your provider can keep service quality high.

Key takeaways

  • Outsourcing customer service cuts costs and opens access to expert support.
  • Roles span inbound, outbound, helpdesk, technical support, and non-voice channels.
  • The Philippines offers skilled, English-fluent teams with 24/7 coverage.
  • However, weigh risks like quality control and data confidentiality first.
  • As a result, clear expectations and metrics keep your outsourced service strong.

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Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,700+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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