Why Companies Outsource Customer Service?

Why Companies Outsource Customer Service

Ever wonder why so many companies decide to outsource customer service these days? Honestly, it boils down to a few big reasons—most of them about saving money and making things easier. Let me break it down in a way that makes sense.

It’s About Saving Money

First off, it’s usually about the money. Running an in-house team costs a lot. There are salaries, office space, equipment… it all adds up. For small businesses especially, that’s a big deal. You’ve got to keep costs down, right?

One small business owner I know—she runs an online store—realized it was costing her way too much to handle customer service herself. Hiring a full-time team didn’t make sense, so she outsourced customer service to a call center. Guess what? It saved her about 40% of what she was paying before. That’s huge when you’re just trying to keep the business afloat. And that’s why cost savings is the top reason companies go down this route.

Expertise Without the Headaches

Here’s another thing—outsourcing gives you access to people who already know what they’re doing. No need to train them up from scratch. You’ve got people who are used to handling everything, from simple questions to complicated technical support problems.

Take tech companies, for example. They’re swamped with users asking for help with tricky software issues. Rather than train a team internally, which takes forever, they can outsource it to a company that specializes in technical support. It’s like handing over the keys to someone who’s already an expert at driving your car.

Flexibility is a Big Plus

Now, let’s talk flexibility. Running a business isn’t always steady. One month, everything’s quiet. The next? You’re flooded with customer service calls because of a new product launch or holiday rush.

A friend of mine runs a small e-commerce site, and he told me one holiday season, his customer inquiries went through the roof. He couldn’t keep up! Instead of scrambling to hire temporary staff—which would’ve taken too long—he scaled up his outsourced team overnight. When things slowed down after the holidays, he just scaled back. No stress, no extra costs for long-term employees.

One of the best advantages of outsourcing customer service is that you can scale up and down without the headaches of hiring and firing.

Around-the-Clock Service

Another big one: 24/7 support. Today’s customers don’t want to wait, and let’s be real, most small businesses can’t afford to run customer service around the clock. But if you’re outsourcing? It’s totally possible.

For example, if you’ve got customers overseas in different time zones, they’ll expect help even when it’s nighttime where you are. By outsourcing to a team in another country, you can make sure there’s always someone to answer their questions—no matter what time it is.

But There Are Some Downsides Too
Let’s be honest, outsourcing isn’t perfect. There are some disadvantages of outsourcing customer service that you need to think about.

You Lose Some Control

One of the biggest issues is that you don’t have the same control over customer interactions when you outsource. When everything’s in-house, you can make sure your team is handling customers exactly how you want—polite, efficient, all that. But with an outsourced team, you’re putting that responsibility in someone else’s hands. And sometimes, they won’t handle things the way you would. It’s a risk.

I’ve heard from a few companies that had issues with outsourced teams not really understanding their brand’s voice. Customers complained about how they were being treated, and that’s not good for business. If your company’s brand relies heavily on personal customer service, this could be a dealbreaker.

Communication Barriers

Then there’s the whole issue of communication barriers. If you’re outsourcing to another country, language or cultural differences can crop up. Even if the team speaks good English, little things—like tone or phrasing—can make a big difference to customers. That’s something to consider.

I’ve seen customers get frustrated when they feel like they aren’t being understood. One company I worked with ended up switching outsourcing partners because the communication gaps were affecting their customer satisfaction scores.

When Does Outsourcing Make Sense?

So, should your business outsource customer service? Well, it depends. If you’re a small business trying to keep costs down and don’t need to micromanage every interaction, it might be the right choice for you. The cost savings alone could make a big difference.

But if you’re a brand that prides itself on personalized service and keeping a tight grip on how customers are treated, then maybe not. Sometimes, an in-house team is worth the extra investment if it keeps your customers happy.

Final Thoughts

At the end of the day, outsourcing customer service works for many companies because it helps them save money, access trained professionals, and scale up when they need to. The flexibility is great, and so is the ability to offer 24/7 support. However, losing control over customer interactions and dealing with potential communication issues are real concerns.

It’s all about finding the balance between what works for your business and what keeps your customers satisfied.

Picture of Joniel Roy

Joniel Roy

I am an experienced SEO expert, Web Hosting Specialist, Full Stack Web Developer, and Content Writer with a strong background in digital marketing. My expertise spans from optimizing websites for search engines to developing robust web solutions and crafting engaging content. With a deep understanding of the latest industry trends and best practices, I help businesses enhance their online presence and achieve their digital goals.
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