The landscape of global business has been irrevocably altered by the emergence of call center outsourcing, a phenomenon that has reshaped the way companies interact with their customers.

Initially driven by the pursuit of cost reductions, this trend has evolved far beyond mere financial considerations. Businesses now recognize the value of accessing a global talent pool, tapping into specialized skills, and providing around-the-clock service to a global customer base. This evolution is not just a story of corporate strategy but a reflection of the transformative power of globalization and technological advancement.

Furthermore, the rise of call center outsourcing has been significantly influenced by the rapid development of communication technologies. Internet and telecommunication advancements have made it feasible and cost-effective to manage customer service operations remotely. This technological leap has not only increased the efficiency of these services but also broadened the scope of what call centers can accomplish, from handling basic inquiries to providing complex technical support and customer relationship management.

In tandem with technological advancements, economic factors play a critical role in this trend. For many companies, outsourcing is a strategic move to remain competitive in a market where cost efficiency can make or break a business. By leveraging lower labor costs in certain regions, businesses can reinvest savings into other areas, such as research and development, marketing, or expanding their product lines. This financial strategy has become a cornerstone for companies looking to thrive in an increasingly competitive global marketplace.

Despite these benefits, the shift towards outsourcing has not been without controversy. Concerns about job losses in developed economies and the impact on service quality are prevalent. However, as the industry matures, there is a growing recognition of the need to balance cost savings with ethical outsourcing practices and the pursuit of quality service. The narrative is no longer about replacing local jobs but about creating a global workforce that complements and enhances the capabilities of businesses worldwide.

The Global Economic Perspective

The economic impact of call center outsourcing extends far beyond individual businesses, influencing the global economic landscape. Countries that have become hubs for call center operations, such as India and the Philippines, have experienced significant economic growth in this sector. This growth has led to job creation, enhanced skill development, and increased foreign direct investment, contributing to the overall economic development of these regions.

On the flip side, the debate continues in countries outsourcing these services. While businesses benefit from cost savings and increased efficiency, there is ongoing discourse about the impact on domestic employment and the broader economic implications. This complexity is a hallmark of our interconnected global economy, where decisions in one part of the world can have far-reaching consequences elsewhere.

Moreover, the outsourcing trend has prompted a reevaluation of economic policies in many countries. Governments are increasingly focusing on creating a favorable business environment to attract outsourcing companies. This includes offering tax incentives, investing in education and training programs to build a skilled workforce, and improving infrastructure to support technological needs.

The shifting dynamics of global trade are also evident in the outsourcing industry. Traditional views of trade are being challenged as services, and not just goods, are now a significant part of international commerce. This change underscores the need for updated trade policies and international agreements that reflect the realities of a service-driven global economy.

The Impact on National Economies

Each nation grapples with the implications of call center outsourcing differently, based on its unique economic context. In countries that host outsourced call centers, the sector has become a vital part of the economy. It provides employment opportunities, often in regions where such opportunities were previously scarce. These jobs often pay well compared to local standards, leading to an improved standard of living for employees and their families.

In contrast, the narrative in countries that outsource these services is more nuanced. While businesses benefit from reduced costs and improved service capabilities, there is an ongoing discussion about the impact on local employment. This situation has led some governments to incentivize companies to keep call center jobs domestic, showcasing the delicate balance between participating in a global economy and protecting local interests.

The economic impact also extends to the development of infrastructure and technology in countries that host these call centers. The influx of foreign investment has led to improvements in telecommunications and internet services, which benefit not just the call centers but the broader population. This development can have a cascading effect, fostering other sectors of the economy and leading to overall economic growth.

However, the benefits are not without challenges. The reliance on a single industry can make these economies vulnerable to global market fluctuations. Changes in technology, shifts in business strategies, or political decisions in outsourcing countries can have immediate and profound effects on these economies. Thus, while call center outsourcing has been a boon for many, it also necessitates careful economic planning and diversification strategies.

Business Perspectives on Cost and Efficiency

From a business standpoint, the decision to outsource call center operations is often driven by the pursuit of cost efficiency and operational flexibility. By relocating these services to countries with lower labor costs, businesses can significantly reduce their operational expenses. This saving is not just in wages but also in related costs such as office space, equipment, and training. These savings can be substantial, especially for businesses with large customer service operations.

Outsourcing also offers businesses the flexibility to scale their customer service operations in response to changing market demands. During peak times, additional staff can be quickly added through the outsourcing partner, and scaled down when demand wanes. This level of agility is crucial in today’s fast-paced business environment, where customer expectations and market conditions can change rapidly.

Furthermore, call center outsourcing allows businesses to focus on their core competencies by offloading a non-core function. This focus can lead to improvements in product or service quality, as resources and attention are redirected to areas that directly contribute to the company’s value proposition. For small and medium-sized businesses, in particular, this can be a game-changer, allowing them to compete with larger companies by leveraging the resources and expertise of their outsourcing partners.

In this context, companies like SupportZebra, a leading company in call center outsourcing to the Philippines, are redefining the landscape of call center outsourcing. Their approach, which integrates AI technology to enhance efficiency and automation, offers businesses a sophisticated solution beyond traditional call center services. Specializing in sectors like eCommerce and SaaS, SupportZebra exemplifies how modern outsourcing partners can provide tailored services that align with specific industry needs. Their presence in the market reflects the evolving nature of outsourcing, where technology and customization play a pivotal role in delivering quality customer service.

Technological Advancements in Call Center Outsourcing

The call center industry has been at the forefront of adopting new technologies to improve service delivery. Advances in artificial intelligence, machine learning, and data analytics have transformed how customer interactions are managed. These technologies enable more personalized and efficient customer service, predicting customer needs, and providing timely solutions.

AI-driven chatbots and automated response systems are increasingly common, handling routine inquiries and freeing human agents to deal with more complex issues. This integration of technology enhances customer experience by reducing wait times and improving the accuracy of responses. For businesses, it translates to cost savings and improved efficiency, as AI can handle a large volume of interactions simultaneously.

Data analytics plays a crucial role in understanding customer behavior and preferences. By analyzing call patterns, feedback, and interaction history, businesses can gain valuable insights into customer needs and expectations. This information is critical in tailoring services, improving product offerings, and making informed business decisions.

The technological landscape of outsourcing is continually evolving, with new innovations emerging regularly. The future of call center outsourcing is likely to be marked by an increased reliance on technology, not just for efficiency but also for providing enhanced, personalized customer experiences.

The Social and Cultural Impact

The social and cultural impact of call center outsourcing is profound and multifaceted. For employees in countries hosting these call centers, the sector often provides better-than-average employment opportunities. These jobs can be a stepping stone to a career in technology or customer service, offering skill development and exposure to international business practices.

However, working in an outsourced call center can also present challenges. Employees often have to adapt to working in a different time zone, aligning their schedules with the countries they are servicing. This situation can lead to a disconnect with local culture and family life, impacting social dynamics.

Culturally, call centers act as a bridge between different parts of the world. Employees become familiar with the cultures and customs of the countries they serve, leading to a form of cultural exchange. This exposure can broaden perspectives and foster a greater understanding of global diversity.

Ethical considerations are also paramount in this industry. There have been concerns about fair labor practices, working conditions, and the overall treatment of employees in outsourced call centers. Companies and governments are increasingly recognizing the importance of addressing these issues, ensuring that the benefits of outsourcing are not overshadowed by negative social or cultural impacts.

The Future of Call Center Outsourcing

As we look to the future, the call center outsourcing industry is poised for continued growth and transformation. Emerging technologies like AI and machine learning are expected to play an even greater role, potentially reshaping the industry in ways we have yet to fully understand. This evolution will likely lead to more sophisticated and efficient customer service models, blending human expertise with technological innovation.

The geographic landscape of outsourcing may also change. While countries like India and the Philippines currently dominate the market, other regions are emerging as potential hubs. This expansion could lead to a more diversified and resilient global outsourcing industry, with different regions specializing in specific aspects of customer service.

Another key trend is the increasing emphasis on quality over cost. As the market becomes more competitive, businesses are recognizing the value of providing high-quality customer service as a differentiator. This shift could lead to more strategic partnerships between businesses and outsourcing providers, focusing on innovation and service excellence.

Environmental and social governance (ESG) considerations are also becoming increasingly important. Businesses are being held accountable for their outsourcing practices, not just in terms of efficiency and cost but also in terms of ethical and environmental impact. This shift could lead to more sustainable and socially responsible outsourcing practices, aligning the industry with broader global objectives.

Striking a Balance

The economic impact of call center outsourcing is a complex and multifaceted phenomenon, reflecting the intricate interplay between global economics, technology, and social dynamics. As businesses continue to navigate the opportunities and challenges presented by this trend, it becomes evident that the key lies in striking a balance. This balance involves maximizing economic benefits while mitigating the associated challenges and ensuring ethical and sustainable practices.

The benefits of call center outsourcing are clear: cost savings, access to specialized skills, and the ability to offer round-the-clock customer service. These advantages have made outsourcing an integral part of the business strategies of many companies. However, it’s crucial for businesses to approach outsourcing with a long-term perspective, focusing not only on immediate financial gains but also on building sustainable and mutually beneficial relationships with their outsourcing partners.

On a global scale, the outsourcing trend underscores the interconnected nature of today’s economy. It highlights the importance of understanding and respecting different cultures and labor practices. For countries that host outsourced call centers, the challenge lies in leveraging this opportunity for economic development while ensuring fair labor practices and sustainable growth. For outsourcing countries, the challenge is in balancing the benefits of outsourcing with the need to maintain a robust domestic labor market.

Technologically, the future of call center outsourcing is poised for exciting developments. As AI and automation continue to advance, they will undoubtedly transform the industry, making services more efficient and personalized. However, this technological evolution also brings the responsibility of ensuring that these advancements lead to better employment opportunities and working conditions for those in the industry.

Finally, call center outsourcing is more than a business trend; it’s a reflection of our globalized, digital world. It presents opportunities for economic growth, cultural exchange, and technological innovation. As the industry continues to evolve, it will be essential for businesses, governments, and individuals to work together to harness these opportunities responsibly. The goal should not only be economic efficiency but also the creation of a global workforce that is skilled, respected, and valued. In this way, the economic impact of call center outsourcing can be a force for positive change, both for businesses and for the communities they touch.

There are several benefits to outsourcing customer service in the hospitality industry.

These benefits include increased efficiency by allowing them to focus on other aspects of their business, professional customer service providers can help to improve services and the overall customer experience, and reduced costs in areas such as reservations and marketing.

Read on to learn more about the benefits of outsourcing customer service in the hospitality industry.

Service Quality

Hospitality businesses need to focus on delivering high-quality service to their customers in order to keep them satisfied and coming back. Experienced customer service teams that are familiar with the industry and its standards are valuable assets in achieving this. By meeting and exceeding customer expectations, hospitality businesses can create a loyal base of satisfied customers who will continue using their services.

Risk Reduction

When a hospitality company outsources their customer service to a contact centre, they reduce its risk. This is because the contact centre company employs and manages the employees, thereby eliminating labour-related legal risks. In addition, the hospitality company has fewer overheads since the contact centre covers office expenses for customer service operations.

This arrangement can be particularly beneficial for small to mid-sized hospitality companies that may not have the resources to effectively manage a customer service department on their own. By outsourcing to a contact centre, these companies can focus on their core operations and leave the customer service to the experts.

Focus on Core Business Operations

Hospitality companies that outsource their customer support to contact centres can focus more on business growth and optimisation. This is because they can free up time and resources that would otherwise be spent on customer support, and, instead, use them to grow their business.

In addition, outsourcing can also help hospitality businesses improve the quality of their customer service. This is because contact centres have the staff and expertise to deliver great customer experiences.

Finally, outsourcing gives hospitality businesses more flexibility by allowing them to quickly shift and adapt to new challenges.

Technology

Technology has always been an important part of delivering great customer service. In the past, customer service meant having a phone line and someone available to answer customer questions. Today, technology has enabled customer service to be much more proactive and engaging.

An outsourcing partner can help take your customer service to the next level by providing technology services such as remote check-in.  This allows customers to get help without having to come into a physical location.

Outsourcing also helps you reduce technology costs since your outsource partner handles updates and developments of the contact centre technology.

Another way that technology has changed customer service is by making it possible to track customer interactions. This helps businesses to identify areas where they can improve their customer service delivery.

Multilingual Customer Service

A multilingual customer service team can be a great asset to any international business. By being able to provide 24/7 service in a variety of languages, you can ensure that all of your customers’ enquiries are handled quickly and efficiently, building up their trust and brand loyalty.

Booking Services

Customers frequently have questions about reservations, rates, and other aspects of their stay. While it’s important to include as much information as possible on the company website and app, hotels and restaurants can also use hospitality customer service contact centres to manage their booking and reservation services.

These contact centres have omnichannel capabilities, which allow customers to choose between receiving help online or via the phone. This flexibility provides a better customer experience and helps to ensure that all questions and concerns are addressed in a timely manner.

Cost Reduction

Outsourcing customer service can have a major impact on a company’s bottom line by reducing costs.

According to Deloitte’s global outsourcing report, 70% of companies consider cost reduction as the primary objective when it comes to outsourcing services.

When done right, it can be a highly effective way to improve efficiency and manage expenses. By outsourcing to a contact centre, hospitality companies can take advantage of economies of scale, flexible staffing, and other cost-saving measures. In some cases, outsourcing can even help companies cut their costs in half.

Finding your perfect outsourcing partner

Outsourcing can be a huge helping hand to any business. Still, it’s vital that you understand just how important it is to examine your options and carefully consider which company to put your trust in.

In the ever-changing hospitality industry, great customer service is key. You need a support model that connects to your customers in the right way. Connecting with your customers is at the heart of great service – helping to solve problems and build better brand sentiment.

But getting customer service right is not always easy in a high-pressure sector, which is why you need a partner that invests in the tools, the technology, and the people to help you deliver quality through any customer service channel. By following this you will find the solution that works for your business.

About the Author

FM Outsource provide outsourcing solutions for businesses of all sizes across customer services, digital marketing and IT development.

Customer service outsourcing can be a cost-effective way to manage customer-related activities. You hire a third-party vendor, such as a business process outsourcing (BPO) company, to handle your service or product orders, requests, and issues.

The BPO company should be able to deliver excellent customer satisfaction. Its support team will be well-trained to communicate with online shoppers and help transform their purchasing journey into a rewarding experience.

Before outsourcing your retail processes, take note of eight critical questions to help you find the right partner. Use these in your ecommerce business strategy.

Read on to learn how to outsource effectively.

1. Does the Vendor Have a Dedicated Team of Specialists?

Ensure that the prospective BPO firm will provide you with a specialist team focusing entirely on your activities. A dedicated team typically consists of an experienced supervisor and top-performing agents. It might also include support analysts and a project manager.

The benefits of a dedicated team:

• Experienced individuals address various product or service concerns fast.
• You can oversee customer service activities such as choosing the work procedures, determining the number of tasks, and deciding on the types of assignments.
• People familiar with your overall customer operations can help you analyze your processes more accurately.
• You can provide consistently high-quality customer service.

Forbes reports that over 50% of customers are ready to change brands to experience better customer service. By contrast, fewer than 5% of customers are willing to stay even after receiving poor service.

2. Is the BPO Provider Accessible 24/7?

Choose a BPO partner that opens its communication lines for you 24 hours a day, seven days a week. You can regularly contact the customer service team for questions and other related matters.

The benefits of accessibility:

• You can regularly receive updates from the team regarding the progress and status of outsourced processes.
• Accessibility improves the work efficiency and productivity of the customer service team.
• The team can express their ideas constructively and freely, raising their confidence.
• Accessibility helps close cultural gaps, especially for an offshore team based in countries such as the Philippines, India, and Ukraine.

3. Does the BPO Partner Guarantee Data Security and Privacy?

Check whether the service provider stores all crucial and sensitive buyer data using cloud technology and the latest customer service software. Also, determine whether it implements strict security policies across platforms.

High data security and privacy can benefit you because they:

• Prevent unauthorized persons, entities, or groups from accessing customer data
• Protect your reputation and brand
• Reduce the chance of suffering substantial financial costs due to a data breach

IBM recently reported that the average cost of data breaches worldwide in 2022 stood at $4.35 million. That’s up by almost 3% from $4.2 million in 2021. The company noted that the global average cost stood at an all-time high.

4. Can the BPO Provider Help With Compliance?

The third-party vendor must help you complete compliance requirements. It must ensure that your retail operations follow government and industry regulations.

Examples of compliance standards are the Payment Card Industry Data Security Standard (PCI-DSS), the Telephone Consumer Protection Act of 1991 (TCPA compliance), and the National Do Not Call Registry (DNC).

Compliance can benefit you because it:

• Protects you from facing hefty fines, penalties, and even imprisonment
• Prevents you from losing clients or reputational damage
• Improves customer trust because the public sees you as a law-abiding organization
• Enhances business insights and strategies as you align compliance needs with your processes

5. Does the BPO Company Offer Multichannel and 24/7 Support?

Select a service provider that online shoppers can quickly contact at any time of day. It should have multichannel or omnichannel support for seamless communication between agents and customers.

Multichannel functions include:

• Phones (fixed lines and mobile)
• Email
• Live chat
• Chatbots
• Social media
• Community forums
• Self-service options

Multichannel and around-the-clock support can benefit you because it:

• Allows consumers to contact you through their preferred communication channel and at their convenient time
• Provides smooth communication between customers and agents without interruptions or loss of contact
• Broadens market reach, enabling you to reach buyers who are heavy users of social media and messaging apps, such as millennials

6. Does the Third-party Provider Use the Latest Technologies?

Work with a BPO firm that applies the latest customer service platforms, tools, and software in its daily operations. It must depend on help desk and customer relationship management (CRM) solutions to manage processes and monitor consumer behavior.

Using the latest technologies can:

• Improve agent output because they can monitor each employee’s performance
• Raise consumer satisfaction and experience because agents learn more about the customers by using the tools to check their histories, previous complaints and inquiries, preferred communication methods, and more
• Help agents manage a high volume of customer calls and inquiries across communication channels

7. Is the BPO Company Transparent With Its Service Rates?

Cost-effectiveness might be your biggest motivation for outsourcing retail functions. Request the potential partner to provide you with the complete list of charges and other pricing plans. Inquire about their hidden and extra charges, if any.

Service fee transparency is beneficial because it:

• Enables you to make a budget and manage costs better
• Builds your trust and confidence in the BPO partner
• Allows you to conduct a cost-benefit analysis to determine whether partnering with a prospect is feasible

8. Does the Service Provider Consider Customer Service a Revenue Driver?

Partner with a service provider that manages customer service to drive revenue. The third-party vendor must not only view consumer service as a means of assistance but also as a crucial part of enhancing your brand image.

Customer service as a revenue-generator can:

• Increase repeat business because of higher customer retention
• Contribute to the company’s long-term growth
• Decrease marketing and advertising costs because you don’t need to focus on finding new customers; your existing market base provides a steady income stream

Final Thoughts

Outsourcing customer service is a significant business decision. Conduct detailed research, ask for expert assistance, and weigh the costs and benefits before deciding to outsource your customer service. This strategy can make or break your ecommerce business.

 About the Author

Rene Mallari is a B2B content writer for Unity Communications, an Arizona-based Inc. 5000 company specializing in outsourcing and offshoring services.

Why You Need to Outsource Call Center Answering Services

There are many reasons why you might want to outsource to the call center market. You may be new to outsourcing and wondering how exactly this service can help you. This short guide can help.

In 2021, the Telemarketing & Call Centers sector in the USA would have a market share of around 24.2 billion dollars, as determined by sales. These latest trends in call center servicing show that many industries or callers prefer to work with companies that outsource their call center operations. But that’s not it. There are several excellent reasons why it’s time for you to do the same.

Free Up Your Resources

When you outsource call center answering services to an experienced company, you can free up your resources. That number may increase by 20% in the upcoming years. When you’re busy with more critical tasks or are running low on staff numbers outsourcing call center services to a reputed company can be highly advantageous for your upcoming business prospects.

Cost-Effective Solution

Call center outsourcing is the best strategy for businesses seeking cost-effective solutions to handle significant incoming calls. Did you know that the United States outsources around three lakh workers annually? Every company has its reasons for doing so, with many trying to save money on human resources.

You don’t want to sacrifice efficiency for cost savings, but outsourcing will also offer you the best possible outcome. It’s better to strike the right balance between creativity and price when searching for a wider talent pool.

Faster Business Process

Reliable and trained customer support representatives are essential for any business. When you outsource your call center answering services, you’ll find that your business processes faster. Companies want to grow, expand, and quickly compete in the digital age. It is why outsourcing customer support representatives is so lucrative.

High-Quality Client Support  

At present, any business needs to provide direct communication and give high-quality client support. But all businesses need not necessarily be well-known brands. One of the most critical factors in the business world is accessibility. If companies don’t have telephone support or a good amount of client requests daily and can’t respond on time or even on specific issues, they lose their investment opportunities.

Reach More Customers

Customers call frustrated and annoyed after facing long wait times and transfers from one person to another. They want an easy, stress-free way to reach your business. Wait times are getting longer because customer service representatives have many tasks they need to handle. It translates into lost sales, which could be prevented by outsourcing your answering services to a competent team.

Get More Sales

The retail sector in the USA accounts for about one-fifth of industry sales, with e-commerce accounting for the rest. Customers who buy online often ask about order information and refunds, requiring more customer care assistance than those who shop in retail stores.

Solve Issues Super Quick

Running a call center can be highly tedious work. You could spend hours and hours on the phone with customers, and the person you’re talking to could have the same problem over and over again. Or, they could be completely disconnected, and you won’t know what they need or where to go.

Outsourcing allows you to get quick results and solve issues from start to finish without being as busy. It makes outsourcing possible to work at since you know getting the job done faster will be the top priority.

Problem Solving Capability

Call centers are one of the best places for problem-solving. It’s hard to tell how someone will react to your message. If they’re busy and talkative, you may not get as far as you wanted. If they’re reserved and quiet, you might still be heard but less effectively. Outsourcing call center answering services allows you to handle both these situations effectively, dramatically increasing your effectiveness.

More Flexibility

Many office managers are feeling overstressed as their to-do list grows. Answering the phone has fallen to the bottom of the priority list, leaving voicemails to pile up and missed opportunities. Outsourcing your calls will help your company provide excellent customer service and lessen the amount of missed opportunities.

Wrapping Up

Now, it is common to look for specialized services instead of doing everything yourself. Not only do you get better results, but you also save money, energy, and time. Why not expand your business and increase your income without all the headaches?

About the Author

TeleDirect provides a host of business process outsourcing (BPO) solutions for companies across the globe. Their turnkey business services, including popular call center platform systems, lead response management, reservation services, and much more, assist a wide range of industries and business sectors. TeleDirect spearheaded a flexible, robust remote BPO architecture long before COVID-19 upended traditional ways of working, and their popular & affordable business optimization solutions are now more popular than ever. With a focus on value & results and enhanced efficiency for any and all business systems, TeleDirect is ready to boost your productivity today. For more information on TeleDirect, fill out a customer contact form or call their BPO experts at (800) 776-1081.csm

More and more businesses are turning to outsourcing, and for good reasons: it’s cost-effective and easily scalable. Contact center outsourcing has proven to be highly beneficial, but it isn’t without its faults.

It is vital to understand both pros and cons of outsourcing to know whether it’s the right move for your company. In this article, you can read about the good and the bad and decide based on what you learned.

Without further ado, let’s get into it.

The Pros

1. The Costs

The main reason why businesses outsource any of their departments is to lower their overall costs. It is much cheaper to pay a BPO call center abroad than to hire and train an entire team on your own at home. The best of all is that you’ll be paying a fixed price and won’t have to worry about raises or bonuses.

2. Scalability and Flexibility

Call spikes are probably the biggest challenge that contact centers face. Luckily, most spikes are predictable and usually happen during the holiday season or times of special promotions.

Due to this predictability, a business can hire an outsourced team to help their contact center manage the high call volume when needed. And, once the spike is over, they won’t have to keep paying all those employees. This kind of flexibility and instant scalability is unimaginable with traditional call centers.

3. The Chance to Increase Productivity

Hiring an outsourced customer service takes a huge load off of a company’s back. Of course, this is only true if the service is high-quality and doesn’t give you more troubles than benefits.

If you manage to find such a BPO team, and you probably can, it’ll allow you to focus more on other aspects of your business (e.g., delivery, sales, production). All the effort of setting up a customer support infrastructure could be redirected into boosting your productivity.

4. The Use of Latest Technology

Since the call center outsourcing industry is highly competitive, the companies continuously invest in new technologies to make them stand out from the crowd. This carries a massive advantage for you, as you won’t have to spend all those resources on bettering your technology.

If you pick the right BPO company to work with, both you and your customers will enjoy the high-quality service that the latest technology provides. This can be anything from smart call-routing, call queuing, multi-channel support, and so on.

5. 24/7 Support

An increasing number of customers expect round-the-clock support. Standard service hours may still be tolerated for local businesses but not for big brands. If you fall into the latter category, know that providing 24/7 support is becoming a necessity.

The good news is that this has never been easier to pull off. All you have to do is find a BPO that operates in the hours that you need. Since social media and chat support are much cheaper than voice calls, you can only outsource those during the night.

6. Working With Support Experts

Even if a company has an excellent product or service, it doesn’t necessarily mean that they have great customer support. The latter is much-needed for a successful business, and the only way to provide it is to keep up with the latest customer service industry trends. This process is very resource-intensive and requires constant investments.

A contact center outsourcing company can spare you the troubles. These companies that you’ll be hiring are already experts in the field. They’re up-to-date with the latest and the most remarkable technologies and consumer behavior. This means that your customers will get top-notch support without you having to invest in an in-house department heavily.

The Cons

1. Insufficient industry knowledge

Training is one of the main reasons why hiring your own contact center team is expensive. Not only do you have to find the right people, but you also have to equip them with the knowledge required to work in your industry.

Sometimes, this knowledge is vast and requires a degree of specialization that most BPOs just don’t have. Outsourced contact centers are usually generalist, meaning that they work with various industries. These people simply can’t know everything, right?

So, outsourcing may not be the ideal solution if you require a customer support team with specialized knowledge.

2. Cultural barriers

As most companies are outsourcing overseas, they should be aware of the cultural and language barriers that such a move brings. The BPO employees sometimes lack the fluency or cultural nuances to converse with your customers smoothly.

This, of course, can be bypassed with the right team and proper training, but it’ll require more effort on your part.

3. Less control

In-house contact centers are great because, well, they’re physically there with you. You can maintain close supervision over the workers and make sure the operation is efficient.

This isn’t so easy to do with an outsourced team. Lack of monitoring may lead to lower quality over time, even with reliable partners.

4. Not Enough Customer Feedback

As customer expectations are on the rise, good customer service must continuously work on meeting those expectations.

If an outsourced contact center interacts with the customers on your behalf, the feedback that reaches you might be distorted. In other words, you won’t have a full grasp on customer feedback which will hinder your efforts to maintain high-quality support.

Conclusion

As noted at the beginning of the article, only you can determine whether outsourcing is the right choice for your company. In the end, it all boils right down to priorities. If cutting costs is your primary goal, outsourcing will definitely help you do that.

Matthew Sims, Director of 4T4 Consult, the first influencer to join Puzzel’s new partner programme, shares the top challenges when outsourcing and how to avoid ice-cream shops only selling vanilla.

The current Coronavirus crisis has shown the importance of contact centres at this difficult time.  When many organisations are looking to outsourcers for additional resource, this is a good opportunity to reflect on the lessons learnt in the industry. By taking inspiration from the top challenges encountered when choosing a business process outsourcing partner there are advantages to be gained.

8 Top challenges for contact centre outsourcing

1. Over-promising and under-delivering – a tight and competitive market in the service sector is a haven for bullish promises from outsourcers desperate for growth. However, suppliers should be responsible for building a solution that is both capable of passing customer board approval and is deliverable.
2. Buy cheap, buy twice – historically, the outsourcing industry has applauded itself on being able to deliver the same or better service for a lower cost, by using price as a differentiator. The temptation to ‘buy cheap’ is immense but at what cost to strategic success?
3. You can’t have your cake and eat it – third-party involvement may create ‘utopian’ agreements for customers, but when those agreements become impossible to deliver, they frequently end in the court room through severely damaged relationships and reputations.
4. Poor alignment between long-term brand needs, solutions and cost – pressures from regulators have led many organisations to make major business adjustments to compensate for pricing and consumer-led pressures. But what is the impact on consumers, businesses and their shareholders?
5. There are no tech silver bullets, only hard work, very careful due diligence and planning – tech options have never been more exciting and have the ability to catapult the industry into a different sphere. However, getting from legacy systems, processes and procedures to a new high-tech state is not easy to do well and can be extremely costly. Done badly, the costs of change often outweigh the long-term benefits.
6. Keeping in tune with cultural and brand alignment – when profit has been severely eroded through regulation, competition and skills deficiencies service often becomes a ‘nice-to-have’ rather than the ‘must-have’. Too much focus on rich tech investment and outsourcers risk becoming the equivalent of ice-cream shops only selling vanilla flavours!
7. Data privacy, protection and crisis management – in fighting for business, brands have focussed on the power of marketing they can derive from using customer data. This risky strategy can be expensive if data is compromised, as contravention of the General Data Protection Regulation (GDPR) could result in a fine of €20 million or 4% of revenue whichever is the greater.
8. Practices that fail to keep pace with, and become misaligned with customer service strategies – often, when a customer service method changes, the people responsible for delivering it don’t change. While the boardroom may applaud the reinvention, their customers could be fighting to get what they bought.  Meanwhile, agents are forced to adopt practices that come from teams who sit in the second row including the training, quality and management functions. This is dangerous practice.

Successful companies learn how to turn these challenges into powerful opportunities to boost agent performance and the customer experience.  Organisations should first consider how they select and deploy the latest technology such as Robotic Process Automation (RPA) and Artificial Intelligence (AI).

Learn from brands that have already invested in them to identify any pitfalls and don’t rush in.  Adopt a measured approach that takes into account the customer journey and then use experts to deliver a carefully selected solution.

Next, always remember a partner is not just a supplier particularly when it comes to business process outsourcing and service delivery.  Organisations should choose their partner wisely, seeking to surround themselves with people and services they can rely on for quality, reliability and thought leadership.

Finally, offshoring is a great strategic opportunity, but not for short-term or tactical gain. Companies need to ensure that the partners, countries and solutions they select are fit for purpose for their customers tomorrow and not just for their profitability today.

To find out more, click here to download the 4T4 and Puzzel white paper entitled “Contact Centre Outsourcing – Top 8 Challenges” or visit www.4t4consult.co.uk.

About the Author

Matthew Sims is Director at 4T4 Consult.  He is an experienced CEO and Chief Business Development Officer with a proven track record of working in the outsourcing/offshoring industry.  A strong sales professional, Matthew has excellent skills in customer relationship management, business process improvement and customer satisfaction.

Prior to 4T4 Consult, Matthew spent 9 years at BPO Sitel before moving to Teleperformance where after a variety of sales and business development roles, he became CEO UK & South Africa.

Matthew is council member of the Global Outsourcing Association UK and was awarded a Bachelor of Arts (BA) degree in Business Administration and Management from the University of Plymouth.

About 4t4 Consult

4T4 was launched in 2019 in response to the growing requirement for consumer-focused organisations to optimise customer service standards.  With extensive knowledge in customer service and journey optimisation, the company is able to make a difference quickly to businesses whose revenues have flat-lined, have an increased cost-to-serve, or are in decline.  4T4 offers B2C organisations the benefit of 40 years’ collective experience in the business process outsourcing and customer service/contact centre industry to enable and deliver true transformative change.  For more information, visit www.4t4consult.co.uk

About Puzzel

Puzzel is a leading cloud-based contact centre software provider and one of the first pioneers to develop a cloud-based contact centre offering. Today, Puzzel combines its omni-channel technology with artificial intelligence capabilities to provide comprehensive, end-to-end customer interaction solutions in an age of digitisation. The company is headquartered in Oslo, Norway, with offices in six European markets including the U.K. For more information, please visit www.puzzel.com.

In 2020, more tech companies are expected to make use of recruitment process outsourcing (RPO).

Due to a critical shortage of software engineers in the USA, IT companies need external help. Very often they look to outsourcing opportunities, and this is the right time to partner up with a recruitment agency that will find IT talents offshore. In this article, we’ll speak about the top 5 benefits of RPO for tech companies and why you can’t do offshore IT recruitment by yourself.

#1: Faster Recruitment

Recruitment agencies have many sources to search for the right candidate, including their own huge databases. They also have an extensive network which enables them to speed up the recruitment process. While researchers are scanning the labor market, recruiters conduct job interviews. As a result, the whole RPO takes far less time than in-house recruitment.

#2: Reduced Costs

If you calculate the cost-per-hire, it’ll be different for recruitment agencies and in-house efforts. Normally, with an outsourced recruitment, tech businesses are able to save money and time. Instead of paying monthly salaries to their in-house recruiters, IT companies pay single fees only for hired employees. Consequently, you pay for the result.

It is important to mention that RPO doesn’t overtake the internal HR responsibilities. Your in-house HR managers still perform all functions needed for successful operation of your offshore team. This includes onboarding, corporate culture, education & trainings, employer-employee relations, employer branding, etc. Recruitment outsourcing only handles the recruitment part while your HR department maintains the core business function

RPO isn’t similar to any other engagement models even if you have ever wondered what is outstaffing. With outstaffing, you will never receive the necessary dedication to your product and this will still cost you a lot.

#3: Immediate Access to the Pool of Talents

With their own database, recruiters can offer you access to a vast pool of seasoned IT specialists. They offer not only strong hard skills, but also candidates with profound soft skills. Since outsourced recruiters work closely with software developers, they can recommend a verified candidate who matches your team best by spirit. This is quite comfortable for foreign tech companies that haven’t established offshore yet. Given the fact that an RPO provider understands your needs, it becomes easier to find that eligible candidate (even for a difficult position). Think of your recruitment partner as a perfect mediator between the supply of the local labor market and demands of your business. Organizations with recruiting database softwares can provide quick and easy access to candidate and job data.

#4: Profound Analytics

Another answer to the question why do you need IT recruitment services is professional and comprehensive analytics. Choose an RPO provider that also offers market researches and analytical reports. This will be a big benefit for the recruitment process because you keep the situation under control and understand the real situation. In the end, having all cards up your sleeve is much better than scrabbling around.

#5: Legal Compliance

The last but not least benefit is full legal compliance with local legislation. Since HR and recruitment laws vary from country to country, it’s important to keep up with the local requirements of your outsourcing destination. Service providers act according to government regulations (which makes your business transparent and legal). This is especially useful for IT companies that desire to grow aggressively.

Final Thoughts

As can be seen, much depends on the recruitment service provider. For this reason, consider an all-in-one place provider that can help you make the most of your offshore presence. For instance, a company like Alcor can set up your own offshore development office in Ukraine. Their team of professionals will help you recruit talented engineers, organize HR payroll, find an office (and accommodate it), as well as comply with American/European and Ukrainian legislation.

In today’s competitive world, if a company has to survive and thrive, it needs to provide superior quality products or services as well as customer support.

As Doug Warner rightly said, “In the world of Internet customer service, it’s important to remember your competitor is only one mouse click away.”

A company has to ensure it delivers excellent customer service at all times. It can set up respective in-house departments and bear the headache of running and paying for them, but those costs could skyrocket and the process may take away other potential resources. A cheaper way to ensure service levels are maintained is outsourcing. Many parts of a business can be outsourced, including call centers.

Why is customer service important?

Customer service is crucial to a business because it enhances customer retention & goodwill. According to a Harvard Business Review, it is anywhere from 5 to 25 times more expensive to acquire a new customer than it is to keep a current one. A happy customer who’s had a great experience with a brand is quite likely to refer the same to his friends over dinner the very night. Word-of-mouth marketing is more important than ever!

A business can distinguish itself from its competitors by providing flawless customer service. Customers have day-to-day issues with a product, quite often due to a lack of knowledge. Nevertheless, they need prompt solutions. Getting their issues resolved by real-life humans helps change loyalty into trust. On the other hand, small problems that are not addressed, such as unclear communication, unresolved queries or ignored requests, demotivate the customer.

Businesses aim to cultivate a loyal customer base that offers positive endorsements and online reviews that help maintain the brand image. It helps them retain customers and build strong relationships. In short, customer service is one aspect that can make or break a business and therefore should not be ignored.

In order to run a company with a bright future, it is imperative to provide the best customer service while keeping costs low. Outsourcing is a sensible way to ensure the growth of a company without going over budget.

Why Outsource Call Center solutions?

Cut Costs. Earn more.

The most obvious benefit of outsourcing is the cost savings it provides. Establishing and running a full-fledged call center involves huge costs in terms of acquiring a large space, infrastructure and training staff, which may be uneconomical. It would be far more convenient to outsource call center services to a trusted vendor saving the company, time and effort.

Focus on core competency. Ultimately that’s what matters!

31west enables a company to focus on core areas of its business, motivating them to allocate resources where they matter most. A company can invest in further training of its employees, procuring better technology, efficient market analysis and effective planning for the company’s progress, something which is important in the face of competition.

Keep calm. Your customers are in efficient hands.

When a company redistributes its business needs, customer service in this case, to a professional outsourcing provider with the required skills and expertise, its customers achieve outstanding support giving the company an extra edge. Also, it guarantees that the customer receives assistance when they need it. Especially in case of a global firm, this support may be required 24×7 irrespective of time zone, which may be taxing on the firm if not outsourced.

Prep to resolve every type of query

In the event that the clients of an association utilize every single accessible channel of correspondence –, for example, voice calls, emails, text messages, and social media – to connect with the business, outsourcing might be the best technique to respond to their correspondence productively in an expert way. Dealing with it in-house would be a huge drain on resources.

Access to potential leads meaning more business

An efficient customer service provider also helps create valuable leads, and convert them into potential customers using planned, meaningful and persuasive communication. They undertake regular follow-up telemarketing services, until they set the foundation for the sales team to take over. Generating leads by recruiting external services, is a great way to slingshot your sales while cutting costs at the same time.

Listen. Act. Keep them happy

Call center employees often provide the best customer feedback. It is imperative for a brand to listen, and show that they’re listening by implementing customer feedback. With the current trend of posting reviews on social media, this is sure to increase brand awareness as happy customers put in a good word.

If you want your company to face business challenges successfully, first acknowledge the significance of outsourcing call center. Ensure that your call center team constantly evolves to make each customer interaction exceptional.

Ultimately, customers do reward good service. Surveys drilling down on this question have found that building a strong customer service operation can revolutionize a company and build a strong customer base. Disregarding it will only cost you valuable time and prospective sales.

Look for a professional call center service provider, who can relate to your business and work hard to satisfy and surpass the expectations of your customers. Start a chain reaction – of happy customers!

About the Author

David Miller is a technology enthusiast, voracious reader and a proponent of #RespectYourCustomer.

One of the ways companies endeavour to make themselves more efficient is by outsourcing some of their business operations. In this article we’ll look at some of the benefits of outsourcing your customer service.

With the increasing importance of the global marketplace, outsourcing has become a popular way for companies to cut expenses. From manufacturing to customer service, many companies operating internationally are now using outside firms to provide services at a lower cost.

However, cutting expenses is not the only benefit of outsourcing. Here are some more reasons why you may want to outsource your customer support operation entirely.

1. Focus

Many companies that choose customer service outsourcing do so in order to focus on their core competencies. In-house resources can be freed up and reassigned to growth-driving functions such as product development, sales and marketing.

2. Technology

Keeping up with the latest software and technology is time consuming and expensive. Outsourcers who specialize in call center operations invest heavily in this area to give good service and remain competitive. Technology such as IVR systems featuring queueing and rerouting get updated as the market develops. Outsourcers also have partnerships with leading technology providers of CRM, Help Desk and Analytics software which ensures agents representing your brand have accurate, consistent information to provide world class customer service.

3. Expertise

When you partner with an outsourcing company you benefit from many years of experience in providing customer support. A lot of outsourcing companies have a wealth of experience in all areas of service provision including recruitment, people management, training and data management. You will be able to make use of this expertise to provide a higher level of service to your clients.

4. Open 24/7

Outsourced contact centers offer flexible operating hours that can help businesses handle and maintain clients who are situated out of their time zones. They can handle customers outside of their country or continent effectively. Outsourced call centers usually operate 24/7 round the clock.

5. Prestige

Small to medium size enterprises (SME) do not have the budget to match the services that larger companies offer. Outsourcing presents an opportunity for smaller firms to compete by giving them access to the same infrastructure, technology and expertise large corporations enjoy.

6. Scaling Up

As businesses grow, finding enough good front-line employees isn’t easy. In-house customer service departments find recruiting, hiring and training new staff a challenge. This is less of an issue when you outsource, as these companies often have more employees working for them. Agents can be diverted to cover your business with ease.

While it is true every business seeks cost efficiencies, and cost savings are the biggest driver of outsourcing, this should not be the sole motive. A business should place its main emphasis on the quality of service provided to its customers and consider the competencies and track record of any prospective outsourcing company before making the move.

It’s common knowledge that major names such as HSBC and British Airways have long since moved massive areas of their business such as call centres from the UK to countries such as India and Malaysia.

There are no doubt advantages to be gained, such as employee costs being slashed by up to 70%, however, before we all rush to relocate to the Far East, shouldn’t we take a closer look at the impact on both the customers and the potential resulting effect on our business?

Lets begin with the customers. I don’t know about you, but I have spoken to quite a few offshore centres and as someone who is rather passionate about levels of customer care, quite frankly, I’m concerned by the ‘conveyor belt’ over-scripted responses and total lack of understanding I received.

Here’s an example: When attempting an offshore directory enquiries service, I was recently greeted by an agent who called himself ‘Bob’ who asked me to spell the name of the business and city no less than four times! At premium rates charged by the second, I was less than amused, especially as the city I was asking for was London! I eventually resorted to an internet search.

Another recent one was a credit card lost and stolen line. If I dared as a caller to deviate from simply giving my card number, name and account number to the robotic and monotone agent, I was greeted with a very pregnant pause followed by a simple continuation of the script from where she left off! Of course that left me uttering the magic words ‘I want to speak to a team leader’, to which I was offered a similar script with a bland apology. I could go on, but I’m sure I’d bore you to tears!

Now please don’t assume by my comments so far that I am absolutely against offshoring, or indeed against the good people of India and Malaysia (I myself have recruited many staff with English as a 2nd language and their performance remains excellent) Furthermore, I do feel that certain backroom duties where such cost efficiencies are apparent can be good for the overall competitive stance of a business in the UK.

Having said that, there is a major culture and acceptability issue to be overcome when foreign based staff provide a front line customer service role to customers within the UK.

Going back to basics for a moment if I may, a core function of a contact centre is to provide a seamless one stop shop for all customer needs, often with one national contact number and a team of skilled and multiskilled agents receiving appropriately routed calls to deal with efficiently and with effectiveness.

Contact centres are there to make the journey from customer need to customer satisfaction a simple and comforting one where the customer leaves the call feeling satisfied and continually confident in their choice of supplier.

The reality though can sometimes be far from it.

I’m sure we’ve all heard about the rogue contact centres with more whip cracking than Doris Day and more pressure to perform than a fire extinguisher. Well, in my opinion, if they are not interested in customer focus, do they deserve our business? But what about those companies who may have willingly and blindly considered offshoring but now find themselves risking their whole business image simply through a desire to cut costs too far below an acceptable level?

There are solutions.

I recently dealt with a company who provided a core product with a number of bolt-ons. These additions were aimed at customer protection and quite valuable in terms of both income for the business and peace of mind for the customer.

Wouldn’t you think therefore that the company would be falling over themselves to mention their availability to the customer during the initial transaction? The answer amazingly was no.

The cross sales figures were a dismal 2%. It transpired that only a fraction of staff mentioned the add-ons. If there was just 25% take up of these additional provisions, the turnover of the centre would itself increase by 10%, not to mention affiliate commission and staff bonus.

Of course, not all business can simply cross sell it’s way into the black, however, before we look at cutting costs and shedding UK jobs, why not look at increasing profit and turnover with the valuable skills, customer base and resources already in place.

Companies will have invested 1000’s of pounds across recruitment, induction, ongoing training costs. Not to mention succession planning and incentives – and that’s only scratching the surface.

Why lose all that and alienate both exited staff and the customer base, only to begin the whole process again in countries with distinct development needs in terms of understanding and delivering the subject of customer care in the UK. Reducing costs is good for business, however what about maintaining the quality of service and good image that will have been so hard fought for.

Perhaps before we decide to make the move overseas, we could look at training staff to identify sales opportunities, consider retention issues and customer churn reduction ideas. Perhaps it’s simplifying the administrative process or altering customer access hours. Let’s ask our staff for suggestions. After all, the staff at the front line with the customers will have a wealth of knowledge and willingly provide concepts for service improvement.

Other ideas of cost efficiency have included locating within regeneration zones across the UK. These geographical areas are where employers can receive major government cash incentives for training staff and employing returnees to work.

Further considering business implications for a moment, what happens to the customer experience when a member of staff from a different culture doesn’t provide the standards of service expected by UK customers?

These people are the customer facing image makers who can make or break a company with both what they say and how they say it.

If as widely reported, the average UK call centre agent earns £12,200 per annum and their India based counterpart earns £1,200 per annum for the same job. How many customers would it take to lose £1000 per month to untrained and inexperienced staff missing an opportunity or solution. One basic holiday package, one loan or store card perhaps?

Turning the coin (so to speak), how much customer retention and upselling or cross selling would it take to increase the bottom line by just £250 per week assuming that the average UK agent may speak to perhaps 5 customers per hour.

When considering this, would you trust your company to a contact centre 1000’s of miles away, from a different culture and who only acted within the confines of the script in front of them?

I know there will be many debates unfolding on this subject, and I have only scratched the peak of the surface today. As I write this, there are threats of strikes, customer boycotts and even damage to the economy through jobs vanishing from this country.

Isn’t it time British business stood up and fought for good old fashioned British customer service and the retention of British jobs?

About the Author

Jason Jesson is a recognized leader in Customer Service, Experience and Retention offering over two decades of improving customer relationships from startups to FTSE100 companies.