When you outsource customer service, it’s more than just partnering with a third-party company like Archipelago BPO. It’s a strategic business operation that allows you to bring timely, exceptional experiences to your customers. You’re putting them first, and that helps bridge your customer relationship closer, thus increasing brand loyalty.
Let’s learn about outsourcing customer service and why you should consider it for your business.
What Does It Mean to Outsource Customer Service?
To outsource customer service means trusting a third-party company to interact with your customers and handle their inquiries, concerns, and complaints.
Why Do Companies Choose to Outsource Customer Service?
There are multiple reasons for outsourcing customer service. You most likely do so because:
- It Saves You Investment
Forming and training an expert customer service team is expensive. And even if you’re a multinational corporation in the UK, you’d still want to invest the company’s time, money, and resources in core operations.
With an outsourced team, you’ll have a readily available expert team capable of meeting the same standards and delivering the same results you expect from an in-house team. Moreover, you’ll save up to 70% of labour costs when you outsource to the Philippines.
- It Allows You to Scale Flexibly
You can’t expand or downsize an in-house team at will. Not only will the consequence be an HR nightmare, but you can also get into trouble with the UK’s labour department.
However, you avoid this problem with an outsourced customer service team. The third-party partner offers flexibility on how large or small your team will be, depending on changes in demand or volume – all that without added fees or entering into new contracts.
- It Makes Skilled Talent Accessible
It’s true that you can always train an in-house team, but how long will it take to ensure that team members can meet industry standards?
That’s why opting for an outsourced customer service team is the better option. The third-party partner ensures that your team is composed of highly qualified individuals who already have the know-how of delivering exceptional customer service.
- It Ensures 24/7 Support
Your customers expect 24/7 support, and you want to deliver that as much as possible. However, you can’t ask your in-house team to work in multiple shifts, as this can consume the company’s resources in the long term.
So, you turn to outsourcing to assist the in-house team. You want them to provide customer support outside business hours, ensuring that your customers receive an immediate response around the clock.
What Are the Different Types of Customer Service Outsourcing?
Customer service outsourcing types vary, depending on three factors:
- Number of needed agents
- Work setup
- Location of the outsourced team
According to the number of agents
- Freelancers. These are individuals whom you hire if you need more people on your team for the short term.
- BPOs. These are the companies you partner with if you need large teams with systems and technology to assist you in providing customer support.
According to the work setup
- Fixed, dedicated team. A team that works exclusively for your company and usually comes at a higher price. It’s an ideal work setup if you want a team that deeply understands your products or services to interact with customers.
- Shared, pooled team. A team that works for you and other companies, which allows you to hire them at a lower hourly rate. It’s an ideal work setup if you want a team that does the basic customer support services, such as handling customer inquiries and resolving issues.
- Project-based team. A team that works for you upon request, so the hiring cost is at a fixed or milestone-based price. It’s an ideal work setup if you want a team that supports your in-house team during peak seasons.
According to the outsourcing location
- Onshore. Choose it if you prefer the outsourcing team to be within the same country. The best thing about onshore outsourcing is that you have the same work hours, culture, and language, so you can collaborate intimately with one another.
- Nearshore. Choose it if you prefer the outsourcing team to be in a nearby country or region. The best thing about nearshore outsourcing is that you have similar time zones, making communication quicker and easier.
- Offshore. Choose if you prefer the outsourcing team to be in a different country or region. The best thing about offshore outsourcing is that you have lower labour costs and scalability.
What Services Can Be Outsourced in Customer Service?
Third-party companies like Archipelago BPO outsource a wide range of customer service functions, including:
- Inbound call centre
- Outbound call centre
- Live chat support
- Email support
- Technical support
- Lead generation
- Virtual assistant
How Does Outsourcing Customer Service Compare to Keeping It In-House?
Having an outsourced customer service team has its edge over in-house. The table below shows you how outsourcing compares with the other.
| When You Outsource | When You In-House | |
| Staff/Team | No recruitment, hiring, training, and retaining of team members, as the third-party company does these for you | Does all the recruitment, hiring, training, and retention processes |
| Has the needed customer service experience already, as the third-party company only hires the top 1% | Might have a team with a mix of experience | |
| Only need orientation/training on your products/services and customer behaviour | Might need extensive customer service training according to the standard your company has set | |
| Receive evaluation reports from the third-party company, which you use to analyse the team’s performance | Team leads, HR, and other leadership monitor, report, and evaluate team performance | |
| Salaries | Pay for the hours worked by the outsourcing team | Pay for the base salary, benefits, and other perks |
| Physical Assets | Facilities, technology, and infrastructure are taken care of by the third-party company | Invest in facilities, technology, and infrastructure and their maintenance |
| Quality Assurance | Assigned QA lead/team lead/trainer reviews the service quality and evaluates it against your rubrics | |
| If a team member falls short, they’ll be notified or undergo retraining | ||
How Can a Business Decide If Outsourcing Customer Service Is the Right Choice?
You’ll come to a point where you need to consider whether it’s more beneficial and effective to outsource customer service. Here’s a checklist to help you decide if it’s suitable for your company at this time, regardless of company size.
- Do you have the resources to fully provide for an in-house team, including salaries, facilities, technology, and infrastructure?
- With the current company state, can you scale with an in-house team?
- Can your in-house team manage to adjust to the unexpected rise in customer inquiries while maintaining a good customer experience?
- Do you have the capability to equip the in-house team with the necessary knowledge and tools?
- Do you have a business continuity plan in place (or can you create one, if not) in case of operational disruptions?
- With your current infrastructure, are you able to provide 24/7 customer support?
If your answers are all yes, that means you can afford to support an in-house team.
If your answers are all no, then you need to outsource your customer service team.
What Are the Main Benefits of Outsourcing Customer Service?
Outsourcing your customer service gives you a competitive advantage, including:
Enhanced Customer Experience
90% of consumers rate an immediate response as important or very important when they have a customer service question (HubSpot, 2021)
You have a team composed of the top 1%, which means they have the ability to resolve customer concerns quickly. And with the help of modern technologies, they can provide round-the-clock support, improving the customer’s impression of your company.
Easier Entry Into New Markets
70% of customers become more loyal to brands that communicate with them in their native language (Intercom, 2019)
If you want (or are planning) to expand into new markets, your outsourcing customer service team can assist with that. In fact, they have already done the groundwork for you due to their being multilingual.
Talking in the same language as your international customers ensures you’re able to reach them and introduce your products/services to them easily.
Cost Savings
25% of operational costs are saved when businesses outsource compared to maintaining it internally (Bain & Company, 2018)
Preferring to outsource non-core customer service operations allows you to save 25% of the cost. You don’t need to invest in office equipment and tools, lowering infrastructure costs. You also don’t need to worry about recruitment and benefits, reducing employee costs.
Strategic Focus
37% of small businesses outsource at least one business process, making outsourcing a practical, effective option for companies of varying sizes (Enterprise Apps Today, 2024)
When you outsource, you’re able to focus your attention on critical business operations, helping you improve the overall business performance. It also allows you to allocate resources better.
On the flip side, you’re freeing your employees from repetitive tasks that once hindered them from working efficiently, thus avoiding potential burnout.
What Should You Look for in a Customer Service Outsourcing Partner?
The third-party company you partner with should possess these qualities:
- Proven track record. They’re well-known in the industry for delivering high-quality services. They receive good reviews and testimonials, and you can verify the truthfulness of these claims.
- Cultural fit. Their values and work culture must align with yours. Ask colleagues and the potential partner’s past and current clients about their experience working with them for a deeper understanding of their culture.
- Flexible scalability. They can cater to your team requirements and adjust its composition on demand.
- Technology and infrastructure. They must have the technological capabilities to support the service you requested and to enhance the quality of customer service your customers expect.
- Contract flexibility. They offer terms that adapt to your evolving business needs with little to no additional cost.
- Transparent pricing. They explicitly state their pricing models and cost structures, which helps you calculate the estimated budget and overhead costs.
We recommend that you consider your customers as you go through this list. Taking their behaviour into account greatly helps you decide which third-party company offers the exact customer support services they need.
Outsource Your Customer Service with Archipelago BPO
Many UK companies are open to outsourcing part of their business functions to developing countries like the Philippines. As a contact centre, Archipelago BPO helps you grow by building high-performing offshore teams. Let’s discuss how we can assist you in achieving that.
FAQ
Do outsourced customer service agents get trained on my brand and products?
They do. The third-party company will request these documents from you to ensure the outsourced customer service team is familiar with your brand and products.
Will I lose control over my customer service if I outsource?
Absolutely not. Even if the team is under a third-party company, you, the client, have full control of this team, including their management, SOPs, training, and more.
How do I measure the success of outsourced customer service?
You can measure it by looking at the KPIs and achievements in the report given by the third-party company. It’s a success if the outsourced team meets or exceeds your rubrics, including customer satisfaction, service level, and quality assurance.
Jump to Section
- What Does It Mean to Outsource Customer Service?
- What Are the Different Types of Customer Service Outsourcing?
- What Services Can Be Outsourced in Customer Service?
- How Does Outsourcing Customer Service Compare to Keeping It In-House?
- What Are the Main Benefits of Outsourcing Customer Service?
- What Should You Look for in a Customer Service Outsourcing Partner?
- Outsource Your Customer Service with Archipelago BPO
- FAQ
