Would you rather wait for customer support or get immediate service? The answer is a no-brainer.
Scaling businesses may not have the budget to start a call center or in-house resources to handle increasing (or fluctuating) customer inquiries and call volumes. Their best option may be to use call center outsourcing to elevate their customer experience.
Outsourcing allows companies to focus on their core activities by leveraging specialized expertise. Whether you’re a startup, small business, or enterprise, our guide to call center outsourcing can help you weigh the costs and benefits of outsourcing versus maintaining in-house operations. Follow along so you can determine which approach helps you strike the perfect balance between meeting customer needs and managing operational costs.
What Is Call Center Outsourcing?
Call center outsourcing, or contact center outsourcing, is the practice of hiring an external company to handle customer service, technical support, or other phone-based communication functions on behalf of a business. So instead of managing an in-house call center yourself, the specialized service provider you hire is responsible for managing all customer interactions.
This allows companies to focus on their core business while ensuring that customer service is handled efficiently by professionals. Of course, it’s important to choose the right partner and establish clear expectations so that you can maintain high service levels.
How Does Call Center Outsourcing Work?
Think of an outsourced call center as an extension of your company. You’re adding reinforcements to your team, creating a partnership that helps you reach your goals.
Here’s how it works:
- Identify which call center services you need.
- Find a call center outsourcing company that offers those services.
- Agree on terms, services, performance metrics, service level agreements (SLAs), and pricing.
- Share product, service, and company information with the outsourcing provider so they can properly train their agents.
- Integrate your company’s call center software and CRM with their systems.
- Launch the partnership for added call center support.
- Monitor call center metrics and KPIs.
- Review results to determine success and identify areas of improvement.
The Pros of Call Center Outsourcing
Businesses can benefit from contact center outsourcing in several ways. Here are a few common pros.
Cost savings
One of the primary advantages of call center outsourcing is the significant reduction in operational costs. By outsourcing, businesses can eliminate call center costs associated with office rent, equipment, and employee salaries and benefits.
Additionally, offshoring to countries with lower labor costs further decreases expenses. The outsourcing provider also hires and trains personnel, freeing up the company’s resources for other critical activities.
| Did you know? An interactive voice response (IVR) system helps call center operators direct calls to the best agents and can provide self-service options for repetitive tasks. |
Increased efficiency and productivity
Call center outsourcing enhances efficiency and productivity by providing access to a larger talent pool of skilled agents, enabling faster call handling and resolution. Dedicated teams focus solely on customer service, improving engagement, and increasing customer retention.
Real-time monitoring of call analytics and metrics helps optimize agent performance, while around-the-clock availability ensures 24/7 customer support without needing local overnight shifts. Outsourcing also allows businesses to effectively manage seasonal spikes in call volume, ensuring consistent customer service during peak times.
| Did you know? Workforce management tools provide accurate staffing forecasting that helps businesses optimize agent performance and maximize resources for shift coverage. |
Improved customer experiences
Call center outsourcing significantly improves customer experiences by providing faster resolutions through access to specialized support staff. This ensures that customer needs are addressed quickly and efficiently. Additionally, outsourcing enables businesses to offer support in multiple languages and time zones, catering to international customers. Enhanced customer satisfaction through better support ultimately leads to improved retention and higher loyalty.
| Did you know? Contact center software unifies communication across all channels and devices, providing multi-channel conversational history, skills-based routing, and a simplified agent interface. |
The Cons of Call Center Outsourcing
While outsourcing your call center can offer significant benefits, knowing the potential drawbacks is essential. Challenges can arise if not carefully managed.
Potential quality control issues
Maintaining consistent quality standards can be challenging when working with an external team. Language barriers, cultural differences, and varying levels of agent training can impact customer satisfaction. Effective quality monitoring and performance metrics are crucial to mitigate these contact center outsourcing issues.
| Pro tip: Reduce quality control issues by following call center quality assurance best practices, such as offering call recording and evaluation tools, real-time reporting, and performance monitoring to ensure consistent service delivery and enable targeted coaching. |
Collaboration concerns
Building a strong collaborative relationship with an outsourced call center is vital for success. Miscommunication, differing time zones, and challenges in knowledge transfer can hinder efficiency and problem-solving. Clear collaboration channels and regular check-ins are essential for effective business communication.
| Pro tip: Unify your in-house and outsourced call center teams by integrating team collaboration tools that streamline communications, facilitate engagement, and provide a centralized knowledge base for consistent information access. |
Lack of expertise and in-depth knowledge
While outsourcing providers offer skilled agents, they might not understand your business, products, or services as well as an in-house team would. This can lead to longer resolution times and decreased customer satisfaction. Providing call center coaching and ongoing support can help bridge this knowledge gap.
| Pro tip: Streamline onboarding by providing outsourced call center teams with easily accessible resources, such as agent training documents and modules, a robust knowledge base, and integrated CRM software that eliminates data silos. |
Types of Services You Can Outsource
Contact center outsourcing offers a wide range of services tailored to meet diverse business needs. Here are some of the key services you can outsource.
- Customer service: Outsourcing customer service ensures that your customers receive prompt and professional support, improving satisfaction and loyalty. Skilled agents handle inquiries, customer complaints, and other issues efficiently, providing a seamless customer experience.
- IT support: Outsourcing IT support provides access to technical expertise, ensuring that technical issues are resolved efficiently. This allows your in-house team to focus on core activities while maintaining high IT performance and security levels.
- Lead generation: By outsourcing lead generation, businesses can efficiently identify and cultivate potential customers. Professional agents use targeted strategies to gather qualified leads, driving sales growth and business development.
- Telemarketing and sales: Outsourced telemarketing and sales teams can effectively reach out to potential customers, increasing sales opportunities. These agents are trained to engage prospects, promote products, and close deals, boosting your revenue.
- Social media monitoring and engagement: Outsourcing social media management, monitoring, and engagement helps businesses maintain a strong online presence. Dedicated teams monitor social channels, respond to customer inquiries, and engage with audiences, enhancing brand visibility and reputation.
These services are just a few of the many things businesses can outsource.
Examples of Call Center Outsourcing Companies
Choosing the right call center outsourcing partner is crucial for your business’s success. Here are a few examples of well-known companies specializing in call center outsourcing services and software.
- Nextiva: Nextiva provides the communications technology for call center Business Process Outsourcing (BPO) providers. With its reliable, cost-effective and flexible cloud-based Contact Center as a Service (CCaaS), outsourcing companies can provide remote teams with multiple disparate tools in one centralized platform.
- TeleDirect: With a strong global presence, TeleDirect specializes in call center services such as customer care, sales, and technical support outsourcing. They offer various services, including inbound and outbound call center outsourcing, email management, and social media support.
- Helpware: Focusing on providing customer support solutions, Helpware offers a combination of human agents and AI technology. Their services include technical support, customer service, and sales support, with a strong emphasis on delivering exceptional customer experiences.
Choosing the right third-party vendor to handle your outsourcing needs depends on your business needs and resources. Compare the companies, read customer reviews, and connect with them to determine if they’re the right fit.
Enhance Your Contact Center With Nextiva’s AI-Powered Solution
With Nextiva, businesses of all sizes can enjoy the benefits of call center outsourcing with our all-in-one, AI-powered contact center software.
Our platform’s easy setup and flexible deployment of powerful AI features allow businesses to start quickly and expand capabilities as customer and business needs evolve:
- Omnichannel support enables customers to connect via voice, email, chat, SMS, or social media, ensuring seamless communication across all touchpoints.
- AI-driven tools like auto-transcription and intelligent virtual assistants reduce costs and improve service quality.
- Workforce optimization features help accurately forecast and staff shifts, ensuring optimal agent performance and customer satisfaction.
Try Nextiva and start boosting agent efficiency, enhancing CX, and saving money today.
Call Center Outsourcing FAQs
Check out these frequently asked questions about call center outsourcing for some extra information and insights.
The cost of call center outsourcing varies based on several factors, including the location of the call center, the number of agents required, the services needed, and the contract length. Outsourcing can lead to cost savings compared to managing an in-house call center.
The difference between inbound and outbound calls is that customers initiate inbound calls, such as customer support or sales inquiries. Outbound calls are initiated by the call center, often for sales, market research, or appointment scheduling purposes.
There are a few different models for call center outsourcing, each with its own focus, price range, and pros and cons. Here are the most common types:
Onshore outsourcing: This model involves contracting a call center within your own country. It often provides the quickest response times and cultural alignment but can be more expensive than other options.
Nearshore outsourcing: This model utilizes call centers in nearby countries, often offering a balance of cost-effectiveness and cultural proximity.
Offshore outsourcing: This involves outsourcing to countries far from your own, typically offering significant cost savings but potentially longer response times and language barriers.
Work-from-home agents: This model employs agents who work remotely from their homes. It can be cost-effective but requires robust technology and management systems.
