Last Updated: January 2025
In today’s competitive business landscape, exceptional customer service is essential for success. However, managing an in-house customer service team can be both costly and resource-intensive. A survey says, 78% of businesses that outsource customer service see it as a cost-effective solution that also enhances customer satisfaction.
What is the outsourcing of customer service?
Outsourcing customer service involves hiring a third-party company or expert to handle the process and complexities of customer support service on behalf of your business. It includes handling complaints, managing tickets, and technical support as well. So it becomes important for businesses to choose the right customer service outsourcing partner that can fulfill their expectations.
Outsourcing customer service brings several benefits for the business So in this blog, we will be exploring 7 benefits of outsourcing customer service.
Benefits of outsourcing customer service
1. Cost efficiency
Businesses can save significant expenses by outsourcing customer service as in-house customer service involves many costs like employee salaries, other benefits, and training & maintenance costs.
A study says outsourcing customer service can reduce your overhead cost by a minimum of 30%. Additionally, you can save substantial investment amounts required for infrastructure such as office space, technology, and equipment.
Most reputed outsourcing companies offer quality services for an affordable cost.
2. Access to expertise
A study by Microsoft says, that 56% of customers end their relationship with the brand because of poor customer service. So having a strong and skilled customer service team is surely important to run a successful business nowadays.
Outsourcing customer service opens the door for businesses to highly skilled and trained professionals. These service providers are experts in customer service jobs and have extensive experience in various industries. They can handle complex customer inquiries and deliver excellent service.
Businesses can leverage their expertise to enhance their customer support service without paying for extra overheads and training programs.
3. Scalability
Businesses face fluctuating demand patterns. For instance, there will be an increase in demand during seasonal spikes, new launches, offer days, or due to territorial expansion. An outsourced customer service can be helpful during this time.
Outsourced partners can adjust the size of the customer service team as per demand from time to time. So that the quality of customer service for business will be maintained. Also, you don’t need to worry about hiring and training new employees to meet the demand.
Conversely, during slower periods, the team size can be reduced to optimize the cost for you.
This flexibility allows businesses to deliver high-quality customer service regardless of demand fluctuations, and avoid the risk of overstaffing or understaffing. According to Deloitte, 57% of companies believe the ability to scale up or down as a primary benefit of outsourcing.
4. Focus on core business
Managing an in-house customer service consumes effort, attention, labor, and resources. On the other hand, outsourcing can release a lot of burden from your soldier and allow you time and effort to focus on your core business and increase the quality of your product or services and revenue.
According to a report, 59% of CEOs believe that outsourcing helps them better focus on their strategic goals. It gives them an advantage to stay ahead of the competition.
5. Advanced technology
Customer service outsourcing companies or professionals provide the latest technologies to enhance the overall customer experience along with their skills and expertise. They use advanced technologies like customer relationship management (CRM) systems, artificial intelligence, and data analytics.
Also, they continuously invest in updating their technical infrastructure. So that you will stay always up to date with technologies and ahead of your competition.
6. Improved customer experience
Outsourcing customer service can significantly enhance the overall customer experience. Professional service providers are equipped with trained and experienced agents who excel in handling customer inquiries and issues efficiently. These agents are often available 24/7, providing consistent support regardless of time zones, which is particularly beneficial for businesses with a global customer base.
One of the key benefits of outsourcing is the ability to offer multilingual support. Service providers often have teams fluent in multiple languages, enabling businesses to cater to a diverse customer demographic.
By outsourcing customer service, businesses can ensure a high-quality, responsive, and personalized customer experience, which is crucial for building customer loyalty and maintaining a competitive edge in the market.
7. Risk Management
Outsourcing customer service can significantly enhance a company’s risk management capabilities. When partnering with established service providers, businesses benefit from their expertise in handling a wide range of potential risks, from data security breaches to compliance issues. These providers are well-versed in industry standards and regulations, ensuring that customer interactions and data-handling practices meet the necessary legal and ethical requirements.
One major risk management benefit is data security. Outsourcing partners typically invest in robust security measures, such as encryption, firewalls, and regular security audits, to protect sensitive customer information. Businesses can leverage these advanced security protocols without incurring the high costs of developing and maintaining them internally.
Outsourcing also helps in managing operational risks by sharing the responsibility with the service provider. This shared responsibility can lead to more efficient problem resolution and mitigate the impact of potential issues on the business. Overall, outsourcing customer service enhances a company’s risk management strategy, providing peace of mind and allowing the business to focus on its core operations.
Read this article to know about 13 Best Practices for Effective Customer Service for Ecommerce
Selecting the Right Customer Service Outsourcing Partner
You should consider multiple factors before selecting a partner to outsource your customer service task. As it is an important part of the organization that is responsible for building your brand image. Here I have listed some factors that must be considered while choosing the outsourcing partner for your business.
Assessing the Provider’s Capabilities
Before onboarding any company as your customer service provider partner you should that whether they are capable of doing it properly without compromising the quality of service you wish to provide or not. For that, I have listed some points to add to your checklist.
1. Experience and expertise:
First, check for their experience and track record in the field of providing good customer service.
Then ensure that they are experienced enough in the specific industry your business is operating. They should understand the common issues that can arise for customers in the future and must know the way to tackle them.
2. Reputation and reference:
Go through the reviews and testimonials from their current and past clients. Also, check how the customers of their clients rated for the customer service. It will present a clear image of their quality of service.
3. Tools and Technology:
See, how technically updated they are. Ensure they are using advanced technology for customer service management to handle bigger numbers of queries at a time. Also, make sure that their technology can be integrated with you existing system seamlessly.
4. Cost and contract term:
Go through their pricing structure and ensure if it aligns with your budget. And thoroughly look into the contract terms and assess if its suitable for you.
Ensuring ethical practices
Only assessing their capabilities is not enough. Having a good ethical practice is also equally important to work as a customer service outsourcing organization. Let’s discuss some points on how to check for their ethical practice:
1. Security compliance:
Make sure they follow strong data security measures in their organization. Check if they are in compliance with all relevant and popular regulations and standards e.g. GDPR, HIPAA, etc.
2. Communication reporting:
They should provide regular insights and metrics regarding the performance. Conversion rate, average resolution time, and average waiting time are the key metrics to look for.
3. Quality assurance:
Ask about their quality assurance processes, including how they monitor and evaluate customer interactions. Ensure they can meet your key performance indicators (KPIs) and service level agreements (SLAs).
About Helplama
Helplama is one of the leading customer service outsourcing companies. Its range of services includes live chat, email, phone support, and many more.
They provide 24/7 customer support assistance in all regions of the world with the combination of AI-enabled automated systems and human touch to achieve a time-efficient and high-quality customer experience.
Their platform can be integrated with multiple communication channels, to ensure the reach of your customer service is everywhere.
They also pay importance to real-time analytics and insights to minimize the response time and increase customer satisfaction. They always emphasize continuous improvement.
Also, they serve various industries and offer customized solutions to meet all industry-specific requirements.
They provide a detailed and comprehensive step-by-step guide to simplify the process of new agent onboarding.
Conclusion
Outsourcing customer service offers numerous advantages, from cost efficiency to enhanced customer experiences. By partnering with experts, over 50% of businesses have increased their customer experience and have saved a great in costs.
Companies like Helplama exemplify how outsourcing can provide tailored, high-quality support, ensuring customer satisfaction and loyalty. As you consider outsourcing, remember that a strategic partner can be a key asset in maintaining a competitive edge in today’s market.
