Shep Hyken\'s Customer Service Blog

Guest Blog: 5 Reasons Why Outsourcing Your Customer Service Can Be A Smart Move

This week on our Friends on Friday guest blog post, my colleague Alleli Aspili talks about the challenge of companies providing excellent customer service and explores the option of outsourcing. – Shep Hyken

You’re a growing business and painting the best vision for your company. One of the things you want to achieve is to provide satisfying and convenient customer service to your consumers while keeping your costs low. Whether online or via the telephone line, you want your customers to have the flexibility to contact you. You swear to yourself that there’s no way you would have the old ringy-dingy call center that answers unattended phones. You target to meet customers’ needs in any way possible.

But the problem comes from your in-house staff doing your customer service. They aren’t highly-skilled and competitive enough to carry out the challenging task. So what on earth would happen now?

Should you outsource your customer service?

Customer service is an important aspect of any business. In fact, it can make or break a company, regardless of size and sophistication. In this age of relationship marketing, it’s vital to make every customer contact as positive and productive as possible.

One way to improve your customer service and win consumers’ loyalty is through outsourcing. Employing a third-party provider to manage your customer care operations can give you substantial and long-term benefits such as:

Cut costs and save BIG

Organizations running their own contact and fulfillment departments often experience higher costs. Outsourcing converts fixed costs into variable costs and allows you to budget effectively. No need to invest on employee training, or purchasing expensive technology. Outsourcing your customer service to a trusted vendor can help you save on the capital expenditure, time, and extra efforts.

Get access to skilled expertise

Professional outsourcing providers have dedicated teams to provide outstanding customer service which can give your business a competitive edge. These personnel have diverse expertise and skills across different industry and technologies that can help you achieve superior quality and unmatched proficiency in customer service.

Increase your efficiency and competitiveness

Outsourcing your customer service ensures your customers receive the help they need when they need it. This will make them happier and will leave you less stressed. Top service providers also have the capacity to absorb dramatic demand shifts, enabling quicker ramp-ups and ramp-downs than in-house centers.

Focus on your core business

In the face of competition, outsourcing your customer care also broadly enables you to focus on core areas of your business while concentrating on its long-term, strategic processes. This will allow you to have the advantage of progressing and staying ahead of the competition.

Get higher revenue

Lastly, customer service providers can work with you to generate revenue through your customer care operations by improving metrics such as first-call resolution, average handle time, customer satisfaction.

So now, have you considered outsourcing your customer service?

Alleli Aspili is a Senior Specialist for Business Development in Infinit Outsourcing, Inc., an ISO-certified BPO company that caters SMEs. She is responsible for maintaining Infinit-O, Infinit Contact, Infinit Healthcare and Infinit Accounting online brand and content. While out of work, you can still see her in front of her computer – learning more about marketing. She’s an internet and social media geek.

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  1. I agree 100% on this article. The 5 reasons stated here are completely right. These are the pros of outsourcing your tasks.

    On the first part –Cut costs and save BIG– .. you definitely save when you outsource tasks, but you will even save MORE when you outsource to other countries. Like, let’s say the Philippines. It costs less to hire someone from the Philippines, than to hire someone from India. (I don’t have anything against India, okay. Just a fact)

    Second — Get access to skilled expertise — the KPO or Knowledge Process Outsourcing is now a growing field in the Philippines because there are more and more skilled workers in that country. (e.g. writers, it, researchers)

    The fifth point — Get higher revenue — it’s already given that you save when you outsource…but because you give more tasks to more people, the amount of tasks distributed done in a shorter period of time, equals more money that comes in.

    I have been outsourcing for many years now, and it has helped my business a whole lot. And I want to share my secret to success. Outsource to the Philippines. They’re growing in this industry for a reason. Try to choose the highly recommended services. I don’t really recommend using oDesk and such to get freelancers. I recommend hiring a business that provides the services you need done.

    Lately I’ve used and their turnaround time is spectacular.

    You might experience a few misunderstandings when you outsource, but what’s a few cons in exchange for a lot of pros, right?

    Sorry for the long blabber. Just wanted to share.

    • these are all really good thoughts. thanks for the writer of the article! and Ricky Fields, thanks for your extra thoughts. it seems as though you really know what you’re talking about. nice. so this is an outsourcing company? is that the right term for someone you can outsource too? sorry, i’m pretty new at this thing. i have a small business and i’m looking for a bit of help, so…

    • Hi Ricky, I definitely agree with you. The Philippines for me is the best place to outsource. We also make it a point to take good care of our employees, contractors and consultants given that they are the best in the industry. Outsourcing can definitely be a win-win situation for all parties involved for as long as we are committed to do our part in making this business grow. Cheers!

  2. Thanks for sharing the post. These are really good reasons to outsource customer services. Outsourcing customer service even helps organizations to relieve workload on full time staff, cost saving, risk management, focus on core business areas etc.

  3. Seeking to outsource to a call center is a very smart initiative. The cost to maintain internal resources which includes paying high wages, taxes, worker’s compensation insurance and benefits outweigh the benefits. For a low hourly rate, you can simply outsource nearshore.

    Corratel | Customer Service and Sales Outsourcing

  4. Very useful article. I would like also to recommend you to use different clouds services for data storage. If your have outsourcing company you need to share information and documents. If you use for example virtual data rooms it would be no problems with documents storage and sharing.

  5. Another thing I would add to this article is that there is a lot of politcal pressure around the US to raise the minimum wage and it has already passed in some places. Even if outsourcing doesn’t make a ton of financial sense right now you also need to plan for your future.

    Some other things to consider if you do choose to go the outsourcing route. All types of outsourcing and companies are not created equally. While outsourcing is a great idea for companies, if you choose the wrong company it will be a nightmare for you. Do a lot of research when choosing a company and look into BPO’s.

  6. Hello Hyken..!! I have read your article & this is awesome & very helpful. Outsourcing has become a fast-growing trend, including in the field of Information and Technology. For small businesses, outsourcing companies are of great benefit as outsourcing work to them will result in low cost.

  7. Naveen Gulati says:

    I can vouch for changing perspectives of organizations who now view Excellent Customer Service as the first requirement while offering their services and products.

    Customers too have changed and demand to know who they are expected to be treated after making a sale, rather than scouting for discounts!

    Keep up the good work Shep!

  8. outsourcing training says:

    While both models have benefits and drawbacks, I have found a different models works well for us.

    That being the train the trainer model where we can send an employee to a training session, seminar, convention, etc. and when they return they can then share what they learn with co-workers. The person that attends the event depends on the subject matter, and how well they can impart what they learn to the rest of the staff.

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