8 Benefits of Outsourcing Customer Service

In today’s fast-changing business world, companies must offer excellent customer service. Customer

Benefits of Outsourcing Customer Service. A female customer service representative

In today’s fast-changing business world, companies must offer excellent customer service. Customer expectations constantly change, so companies need an innovative plan to support their customers. Outsourcing customer service is often the answer to this problem.

A customer service professional helps a customer before, during, and after the purchase. Answering questions, fixing problems, and making customers happy are all part of the job.

Keeping customers happy, handling questions and problems efficiently, and maintaining a good brand are all goals for business owners. In this guide, you’ll find everything you need to outsource customer service successfully. We will discuss the following topics:

  • The Importance and Benefits of Outsourcing Customer Service
  • Two Types of Outsourcing
  • How to Outsource Customer Service Successfully
  • Tips, Tools, and Best Practices for Successful Outsourcing
  • Get Started With the Best Offshore Talent


Benefits of Outsourcing Customer Service. Female customer service agent taking phone calls.

Importance and Benefits of Outsourcing Customer Service

Outsourcing customer service is a smart move for businesses that want to make things run more efficiently and save on cost. It means getting help from other companies to handle specific customer support tasks, which comes with many perks. 

Cost Efficiency

Outsourcing customer service is an excellent way for businesses to save money. Using outside help allows companies to maximize their resources and stay on budget while still providing excellent customer service.  A cost-effective offshore labor strategy is a great way to reduce costs.

Global Access to Talent

Outsourcing also allows access to a global network of professionals with various languages and cultures. It is a great way to serve different cultures more efficiently. Aside from cultural benefits, outsourcing in different time zones allows for round-the-clock customer support. Accessibility will ensure that your customers’ needs won’t stop at 5 p.m. 

Scalability and Flexibility

It is easier to adjust the size of a customer service team when outsourcing customer service. This flexibility allows companies to adapt quickly to changing customer demands without hiring and firing employees. 

Focus on Core Competencies

Outsourcing customer service allows businesses to focus on their core strategy and strengthen their processes. They analyze KPIs, update SOPs, and suggest new ideas instead of worrying about day-to-day customer service.  It increases productivity, allowing them to explore the future more and gain valuable time.

Improved Customer Satisfaction

Outsourcing companies usually specialize in finding the right talent who is excellent at solving problems and making customers happy. This know-how leads to better customer experiences, making people more loyal and giving the brand a good reputation.

Risk Management

Outsourcing shares business risks with the service provider, like staff changes, poor performance, and hiring headaches. Business owners can focus on other goals, knowing their customer service is handled.

Rapid Implementation and Onboarding

Outsourcing companies can quickly find talent and implement customer service solutions. Swift action meets market needs and enhances service, providing a competitive edge in the industry. This agility allows rapid adaptation to changing customer demands, ensuring sustained business growth.

Benefits of Outsourcing Customer Service. Female customer service representative smiling.

Two Types of Outsourcing

Offshore Outsourcing

Offshore outsourcing, the practice of hiring companies from different countries for cost efficiency, has become a pivotal aspect of the global business landscape.  As of 2019, the global outsourcing market had an impressive valuation of approximately 92.5 billion U.S. dollars. The Asia-Pacific region, notably countries like India, the Philippines, and Malaysia, has emerged as a hub for this economic activity.

The appeal of these countries in the outsourcing sector is primarily due to their skilled workforce and relatively lower labor costs. The Philippines, for instance, stands out with its substantial pool of English-speaking professionals, contributing significantly to its prominence in the global outsourcing arena. Using offshore outsourcing to leverage lower labor costs and access a wide range of talent is a significant financial advantage for companies.

Onshore Outsourcing

Onshore outsourcing involves hiring a third-party provider within the country where you operate. While it may not be as cost-effective as overseas outsourcing, it offers benefits such as shared culture, language, and proximity.

A 2020 Deloitte survey revealed that 59% of organizations prefer onshore outsourcing due to its ease of communication and relationship management. Onshore outsourcing is gaining traction in regions like the United States and Europe, particularly in marketing, social media, and SEO. 

This approach effectively addresses business concerns related to data security and regulatory compliance. Many businesses fear offshore talent because of possible legal discrepancies between domestic and offshore entities. For companies that prioritize in-person interactions and value face-to-face meetings, the costs and time involved in overseas travel can be significant and burdensome.

How to Successfully Outsource Customer Service

Define Your Goals and Requirements

Determine what you want to achieve by outsourcing, such as cost reduction, 24/7 support, or access to specialized skills. Clearly define the quality and scope of service you expect, including response times, resolution rates, and customer satisfaction goals.

Choose the Right Outsourcing Partner

Look for companies with a proven track record in your industry. Evaluate their capabilities and ensure they have the necessary technology, infrastructure, and skilled workforce. Don’t forget to consider their company culture and how well it aligns with yours.

Prioritize Training and Quality Assurance

Provide detailed product training, along with your company’s policies and values. A customer service outsourcing partner is only as good as the tools they’re given! After setting them up for success, monitor and conduct regular quality checks.

Focus on Clear Communication and Expectations

Setting expectations and communicating clearly are the foundations of customer service outsourcing. According to a McKinsey report, companies that effectively develop communication channels with their outsourcing partners typically enjoy higher customer satisfaction and improved service quality.

Regular meetings, consistent feedback, and meticulous record-keeping enhance mutual understanding between the business and its outsourcing partner. Collaboration tools and technology enable real-time communication as well. A transparent and accountable outsourcing relationship enhances the overall success of the outsourcing relationship.

Set Up Effective Performance Metrics

Track metrics like First Call Resolution (FCR), Average Handle Time (AHT), Customer Satisfaction Score (CSAT), and Net Promoter Score (NPS). Periodically review these metrics to assess performance and identify areas for improvement. Remember, what gets measured gets managed!

Foster a Collaborative Relationship

Treat your customer service outsourcing provider as a partner rather than a vendor. The success of your team is the success of their team, too. It’s important to encourage and act on feedback from the outsourced team. They’re on the front lines, and it’s essential for them to feel like they are part of the team. 

Use Technology and Data Analytics

Using advanced technologies and data analytics is crucial for successful outsourced customer service. Bringing in tools like customer relationship management (CRM) systems, artificial intelligence (AI), and chatbots can improve customer support. 

Data analytics helps businesses understand what customers do, like, and find frustrating. With this knowledge, companies can adjust their outsourcing plans to suit customer needs better. Analytics monitors performance, spotting trends and improvement areas, ensuring long-term success in outsourcing customer service.

Benefits of Outsourcing Customer Service. Male customer service representative.

Tips, Tools, and Best Practices

Customer Relationship Management (CRM) Systems

Setting up a robust CRM system is essential when outsourcing customer service. One popular choice is Salesforce, a comprehensive tool for handling customer interactions and data. This software is expensive but offers a robust toolset customizable to your business. Plenty of affordable CRMs are available if you don’t need a sophisticated system like this.

Gartner says that by 2025 businesses are expected to spend about $80 billion on CRM software by 2025. Using CRM tools helps solve problems quickly, makes customer interactions more personal, and organizes all customer data in one place.

Virtual Communication Platforms

Platforms such as Zoom, Microsoft Teams, and Slack are essential for successful outsourcing. Regular online meetings facilitate rapid communication, project updates, and vital discussions. Microsoft Teams and Slack are particularly effective due to their instant messaging and document-sharing capabilities, which enhance team collaboration.

Effectively utilizing these tools does more than enable clear communication; it also fortifies the partnership between businesses and outsourcing providers, resulting in a seamless and responsive customer service framework.

Project Management Tools

Your outsourced customer service team can benefit greatly from utilizing project management tools.

Platforms like Asana, Trello, and Jira offer an organized and transparent view of ongoing tasks, deadlines, and project statuses, which is crucial for coordinating remote teams. With these tools, workflows are managed efficiently, and all team members are on the same page, regardless of location.

Implementing such systems can significantly enhance productivity and accountability, leading to more effective customer service delivery and higher customer satisfaction rates. This approach, crucial in the modern, digitally connected business environment, is a cornerstone for successfully outsourcing customer service tasks.

Utilizing Offshore Staffing Agencies

Getting help from offshore staffing agencies can be a cost-effective strategy to recruit skilled customer service professionals. According to Staffing Industry Analysts, the growth of the global staffing market reached $648 billion in 2022.

These agencies specialize in identifying and training reputable offshore talent, alleviating the burden on businesses to find the right fit. This approach allows companies to focus on their core competencies while gaining access to a skilled and thoroughly vetted workforce. Utilizing such resources enables businesses to enhance their customer service capabilities without incurring high costs or diverting attention from their primary operations.

Establish a Feedback Mechanism

Implement a system for receiving and acting on feedback from both customers and the outsourced team. This practice ensures seamless integration of your outsourced team with your in-house staff. A feedback mechanism is crucial to maintaining high-quality standards in your business operations and continuously improving customer service. 

Get Started with Outsourcing the Best Offshore Talent

Assign is committed to delivering outstanding customer experiences by strategically integrating skilled personnel into your organization. Whether it’s outsourcing an entire customer service team or supplementing your existing team to prevent burnout, we’ve got you covered!

Our approach is hiring top offshore talent, seamlessly onboarding them alongside your team, and managing their performance and feedback for the long haul. At Assign, we’re more than just a vendor you contact monthly for billing; we’re your offshore partner.

Contact us today to learn more!


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