Everyone from scaleups to established enterprizes experience surges and drops in customer inquiries. At some point, they’ll ask the same question. Should we outsource customer service?
The short answer is, yes. If your goal is to deliver excellent customer care at a lower cost of service, outsourcing customer service is the way to go.
At 5CA, we’ve honed our tailored customer experience (CX) management strategy over 25+ years. Understanding what you—and your customers need—is in our DNA.
So, keep reading to find out everything you need to know about customer service outsourcing.
What is Customer Service Outsourcing?
Customer service outsourcing is the process of moving some or all your customer support operations to a third-party specialist.
By outsourcing customer support, your business can focus on what it does best while ensuring timely responses to customer concerns.
The benefits of outsourcing customer service are clear.
Benefits of outsourcing customer service in 2023
Many businesses choose to outsource customer service — here’s why:
1. Cost savings
Outsourcing customer support eliminates the need for heavy investments in infrastructure and training, saving you money.
2. Support scalability
Fluctuations in customer inquiries demand a flexible approach. Outsourcing gives you a team that can handle those changes effortlessly.
3. Expert support agents
Business process outsourcing (BPO) companies like 5CA specialize in high-quality support.
Our agents are subject matter experts who understand and love your brand as much as your customers do.
4. Outsourced support 24/7
Your customers appreciate support on demand. Outsourcing lets you provide customer support around the clock, even outside regular hours.
5. Multilingual customer support
In the 21st century, multilingual support is vital. Outsourcing customer service connects you with agents proficient in various languages.
That’s why 5CA’s multilingual customer support base spans over 28+ languages, worldwide.
6. Global reach
Cater to customers across different time zones and regions without constraints. 5CA is present in 78+ countries, ensuring support for your worldwide customers.
7. Technology and trends
Staying current with technological advancements and industry trends means always keeping your finger on the pulse. Outsourcing customer service grants you access to the latest technologies and practices.
At 5CA, we embrace cutting-edge tools like AI-powered chatbots, automation, and data analytics to optimize customer interactions.
8. Rapid implementation
Establishing an in-house customer support team can take time – hiring, training, setting up infrastructure – it’s a lengthy process.
With outsourcing, you can swiftly deploy a proficient team ready to assist your customers, avoiding lengthy ramp-up times.
9. Focus on core competencies
Outsourcing customer service allows you to channel your energy and resources towards your core competencies.
By entrusting your customer support to experts, you free up your internal teams to innovate, develop new products, and drive growth.
10. Mitigate risk
Navigating customer service challenges involves inherent risks, from compliance issues to handling sensitive data.
Outsourcing to a reputable partner like 5CA ensures compliance with industry regulations and data security protocols — reducing your legal and reputational risks.
11. Customer insights
Outsourced customer service providers leverage advanced analytics to extract valuable insights from customer interactions. Fueling strategic decision-making, enhancing product offerings, and identifying areas for improvement.
Now that we’ve established the benefits of customer service outsourcing, let’s weigh it against the alternative: in-house solutions.
Outsourcing vs. in-house customer service
Customer experience (CX) isn’t just jargon; it’s the foundation of your success. Meeting modern customer expectations is a challenge. Your customer service needs to be quick, intuitive, and flexible, all while maintaining a human touch.
But, how is outsourcing customer service more cost-effective than going in-house?
Hiring, onboarding, and retention costs
As you expand into new markets, cultures, and languages, enhance your product offerings, and onboard new customers, costs mount. It’s a lot to handle, and it’s not easy on your budget.
In-house customer service advisor turnover rates hover around 30-45% annually, meaning even after investing in hiring and training, you might need to repeat the process within months.
What’s more, overheads, staffing expenses, marketing costs — these escalate with growth. In challenging economic times, opportunities to cut costs while maintaining quality are rare and invaluable.
This is particularly true for customer service. The cost of providing customer service increases as your customer base grows, and their expectations for brand experience rise.
The solution? Outsourcing.
• Outsourced contact centers bring expertise and process efficiency, all while cutting costs.
• Outsourcing gives you access to the best talent pools for customer service, often in lower-cost markets. They leverage remote advisors or establish centers in places with similar languages and cultures — but lower labor costs.
• An outsourcer invested in the well-being and career growth of its agents ensures lower turnover rates. With greater access to talent, they can rehire at a significantly lower cost when employees depart.
Technology costs
According to the Salesforce “State of the Connected Customer” report, around 70% of fast-growing companies plan to increase investments in customer experience initiatives. This involves research, market surveys, implementing new systems, and more.
These initiatives aren’t cheap — regardless of your business size.
Outsourcing your customer service transfers these costs to your outsourced partner, who should already have established processes and systems in place.
At 5CA, we’ve teamed up with Zendesk, allowing us to seamlessly integrate with your current setup or provide a standalone solution.
So, how can modern, adaptive customer service outsourcers add value to your business?
Adding value with modern outsourcing
A more flexible outsourcer can strike the right balance between self-service, human interaction, and automation.
So, your customers can experience your brand on their terms.
They build a foundation for ongoing cost reduction by incorporating AI and self-service, using human agents to improve AI, employing behavioral science to drive self-service adoption, and enhancing staff productivity through intelligent automation.
On top of that, they establish processes for continuous and proactive improvement.
Flexible and intelligent outsourcing should be elastic. If it is, you can:
• Deploy and pivot rapidly as consumer needs and markets shift.
• Scale up rapidly during peaks and downsize quickly during lulls.
• Recruit and manage a talent pool with the right language, hard and soft skills, and brand alignment.
• Efficiently manage workers, ensuring cultural awareness to enhance engagement and brand representation.
• Design improved CX journeys and interactions free of silos.
• Integrate robust data competence and sophisticated customer journey analysis for rapid insights.
Furthermore, they establish ongoing processes for continuous improvement.
But can you outsource customer support without harming the customer experience? The answer depends on your chosen outsourcing partner.
When selecting an outsourcing partner, you need to find the right fit for your business needs. At 5CA, we’re proud to be COPC-certified, adhering to the highest industry standards and providing exceptional customer experiences internationally.
Choosing the right customer service outsourcing partner
Here’s what to look for in an outsourcing partner:
Expertise
Look for an outsourcing company with deep industry knowledge and a track record of delivering high-quality customer support.
Technology
Ensure your customer service outsourcing company embraces the latest technologies and tools for efficient and effective support.
Flexibility
Choose a BPO partner that can adapt to your changing needs and provide scalable solutions.
Multilingual support
If your customer base is diverse, opt for a customer service partner with a wide range of language capabilities.
Global reach
An outsourcing partner with a global presence can provide support across time zones and regions.
Data security
Prioritize outsourcing companies with robust data security protocols to protect sensitive customer information.
Outsourcing remote vs. on-site call center agents
WFH work is a growing phenomenon for good reason.
If you already have a remote support team—or if you’ve explored a WFH operating model—then you’re probably aware of the benefits and challenges that come with remote work.
These same must be considered when thinking about the type of outsourced call center you’d like to partner with.
A BPO that uses remote support agents, like 5CA, has many benefits.
Just like with general remote work, we have access to the best talent we can find. Our recruiting and hiring processes aren’t limited by geographical location.
If your outsourced customer service agents are spread across the globe, you can rest easy knowing something like a global pandemic won’t affect your ability to support your customers.
Remote work is known to positively influence employee wellness, less time away from work, and greater employee loyalty.
Using a BPO with a physical call center means you risk losing out on these benefits.
International or domestic outsourcing?
Outsourcing your customer support internationally makes sense if you’re looking to save costs and support a global customer base. For example, if you’re looking for English-speaking customer support agents, your BPO partner may enable you to recruit top-tier agents based in a country like the Philippines — well known for its low cost of living.
Another major benefit to outsourcing internationally is that it allows you to tap into a large pool of high-quality talent—available 24/7—across multiple time zones.
Domestic outsourcing does bring one benefit to consider. The first benefit is cultural familiarity. If most of your customer base is local, domestic support agents may understand their nuances. But with adequate training, international support agents can handle pretty much any question that local agents can.
So, now that you know what to look for in an outsourcing partner, let’s talk about industry-specific outsourcing solutions.
5CA’s tailored industry-specific outsourcing solutions
While customer service outsourcing holds universal advantages, its impact varies across industries.
Outsourcing customer service offers benefits for e-commerce businesses
For e-commerce businesses, outsourcing customer service brings many advantages. With the increasing demand for online shopping, providing exceptional customer support is king.
Outsourcing means rapid response times, cost efficiency, content moderation, and seamless order tracking.
By entrusting customer service to experts, you can focus on optimizing your online store, enhancing customer satisfaction, and fostering brand loyalty.
Additionally, multilingual support ensures that your global customer base receives assistance in their preferred language, leading to higher customer satisfaction and retention rates.
Outsourcing customer service offers benefits for gaming companies
Gaming companies thrive on delivering immersive experiences to players, so outsourcing customer service makes sense.
With the 24/7 nature of the gaming industry, outsourced support offers omnichannel, round-the-clock player assistance, community management, troubleshooting, and guidance.
Knowledgeable agents equipped with AI and automation tools can swiftly address player queries and technical issues, contributing to a positive gaming experience.
Plus, VIP support services can cater to dedicated players, enhancing their loyalty and engagement with your gaming platform.
Outsourcing customer service offers benefits for consumer electronics companies
For consumer electronics companies, efficient technical support and product assistance are crucial for maintaining customer satisfaction (CSAT).
Outsourcing customer service in the consumer electronics industry guarantees timely responses to technical queries, enabling your customers to make the most of your products.
By outsourcing your support, you enhance the overall customer experience, drive brand loyalty, and gain valuable insights through data-backed analytics.
Offering 24/7 live customer support and chat assistance ensures that customers can access help when they need it, contributing to a positive brand image.
Outsourcing customer service offers benefits for scaleups
Scaleups face unique challenges as they experience rapid growth. Outsourcing customer service becomes a strategic choice, offering cost-efficient solutions while allowing the company to focus on core growth strategies.
As a scaleup, having the flexibility to rapidly expand or downsize customer care operations based on demand fluctuations is essential. Outsourced support also provides actionable insights and data that inform decision-making processes, aiding in further growth.
With chat-based support available around the clock and a global reach, outsourcing supports scaleups’ journey towards becoming industry leaders.
FAQ relating to outsourcing customer service
What is chat-based outsourcing?
Chat-based outsourcing involves entrusting customer support via real-time chat to external outsourcing companies.
How much does it cost to outsource customer service?
The cost varies depending on factors like the outsourcing provider, services required, and level of support.
Why do companies outsource customer service?
Outsourcing allows companies to focus on core functions while ensuring efficient and cost-effective customer support.
How to outsource customer service?
Identify a reputable outsourcing provider, define your support needs, integrate with their team, and monitor performance.
What is outsourcing customer experience?
Outsourcing customer experience involves delegating customer support functions to specialized providers to enhance overall customer satisfaction.
Why is outsourcing a good idea for services?
Outsourcing brings expertise, scalability, and cost efficiency, allowing you to maintain high service standards.
What should you look for in a customer service outsourcing provider?
Experience, scalability, technological capabilities, and cultural compatibility are key factors.
What is BPO in customer service?
Business Process Outsourcing (BPO) involves entrusting specific business functions to external partners.
How does outsourcing customer service benefit customers?
Outsourcing ensures quicker response times, expertise-driven support, and availability around the clock.
Is customer service outsourcing right for you?
Customer demands are evolving — outsourcing your customer service would be a strategic move.
At 5CA, we offer over 25 years of honed CX management expertise. Our approach empowers businesses to navigate demand fluctuations seamlessly. You gain access to a proficient team of multilingual remote agents who integrate effortlessly with your existing team.
With customer service outsourcing, you can deliver effective, 24/7 support without the complexities of managing an in-house team.
As businesses across e-commerce, gaming, consumer electronics, and scaleups continue to benefit from the power of outsourcing, the future of customer support looks promising.
Interested in learning more? Let’s chat.
