Despite the fact that outsourcing was both a wholly new concept and virtually unknown ten years ago, it now plays a key role in the global economy. According to recent reports, the worldwide contact center industry is expected to reach a value of $339.4 billion in 2020. This industry is predicted to increase gradually over the following few years, reaching a total value of $496 billion by 2027.
Despite the industry’s rapid growth, many corporate executives remain skeptical of its advantages. Part of their hesitation to embrace the industry, particularly customer service outsourcing, stems from a lack of understanding of its merits. We debunk five prevalent myths that prevent far too many businesses from reaping the benefits of outsourcing customer service.
Myth #1: Call Center Outsourcing Is Too Expensive
It’s true, in the beginning, the urge to outsource was driven by the ability to save money on business operations. While it’s possible to cut on costs when outsourcing, recent research from business advisory firm KPMG found that among 490 outsourcing contracts worth a total of £10 billion, the main reason many companies chose outsourcing was not for cost savings, but for improved customer service quality.
According to statistics, organizations can save up to 50 percent through outsourcing. The success of several outsource service providers is not surprising, given their ability to reduce operating costs associated with staffing, assist small businesses in managing agents more effectively, and provide more efficient yet cost-effective alternatives to user support software, equipment, and infrastructure. Internal call centers require a lot of time and effort.
Large call centers have a 44 percent turnover rate, which necessitates constant agent recruitment, hiring, and training. There are other charges for facilities and infrastructure, such as computers, workstations, the internet, cutting-edge tools, and software. For a contract price that is typically less than what it would cost to set up the full system internally, an outsourced call center absorbs these expenditures.
Myth #2 – Call Centers Can’t Deliver Brand Experience
This has less to do with outsourcing in general and more to do with the outsourcing you choose. While some outsourcing organizations fail to operate as a client’s brand extension, the majority are committed to producing an experience that exactly matches a company’s principles and brand voice. Your customers won’t be affected if you do your homework before using outsourced inbound call centers or outbound sales call centers.
Myth #3 – Outsourcing Means Offshoring
While the phrases outsourcing and offshore are commonly used interchangeably, they are not synonymous. Offshoring always entails relocating a company to another nation, whereas outsourcing entails a single company delegating one or more portions of its operations to others. The term still applies if you outsource tasks to a company down the street.
Call center outsourcing’s reputation is frequently harmed by this ambiguity. Customers prefer domestic service people, according to business owners, but outsourcing cannot provide this workforce. Because many external call centers are based in Canada and the United States, this is completely false.
Myth #4 – Data Privacy May Be Compromised
Outsourcing in general implies that you will be responsible for disclosing all of the details about your company. For some businessmen, a data breach is one factor that deters them from using outsourcing in their strategy.
When it comes to outsourcing, data privacy has always been a worry. The outsourcing partner, on the other hand, is responsible for using all of their client’s information in their best interests. One of the primary priorities for these Business Process Outsourcing (BPO) firms is to safeguard the security and privacy of their clients.
This has clearly been demonstrated in a large number of BPO organizations, where happy and pleased clients result in longer business relationships.
Myth #5 – Lack of Control Over Employees
Because customer connections are so important to a company’s success, it’s understandable that many executives are hesitant to leave them to a third party. This is therefore usually a key consideration when comparing answering service vs call center services pros and cons.
It’s easy to feel confident about the quality of service delivery when you can watch the company’s in-house customer service department. Companies are hesitant to outsource because of the seeming lack of control over how agents perform. It’s a common question: how do you keep track of what an outsourcing firm is doing, and how do you know they’re following your key business practices?
They are held back by their disempowerment as a result of not having direct control over their business operations. Companies may feel and stay in charge of this element of their organization with the use of technology advancements and sophisticated cross-platform business solutions that help simplify real-time monitoring of results produced by outsourced customer service employees.
Customers Should Be Your Highest Priority
Customer service departments’ primary goal is to guarantee that your customers are well-cared for and satisfied. A happy consumer will come back and tell their friends and family about you. A dissatisfied client is unlikely to return, frequently without making a complaint or providing an explanation.
While it’s tempting to save every penny, decreasing expenditures at the expense of customer satisfaction is never a good idea. Rather, cut costs by outsourcing customer support to a call center that will represent your brand as if it were your own employees.
Many companies outsource customer support to a call center to save time and allow employees to focus on things other than answering phones. Call center services provide skilled operators that manage your incoming calls according to a script or rules you provide. Order management, complaints, technical assistance, and outbound marketing campaigns are all common services provided by call centers.
Some firms opt for a call center service provider from outside the country to save money. While international call centers are often less expensive than domestic call centers, there are certainly important factors to consider when deciding whether to work with an international contact center.
About The Author
Jim Pullman
Jim Pulman has extensive knowledge and experience in Home Building, Construction, and Design. He writes articles in his free time and partners with content creators to share his expertise with the online community. He is also passionate about automobiles.
