The Challenges of Outsourcing Your Customer Service Department

With many costs associated with running a business, most business owners tend to cut down their overheads by outsourcing certain services. Outsourced cloud services are amongst the most popular as they lower the costs while allowing the present talent to focus on other critical aspects of the business. Although, most companies consider customer service of key importance, however, as it doesn’t generate any revenue they prefer outsourcing it.

However, outsourcing your CSD may come with its own set of challenges which are discussed briefly down below.

  1. Lack of Specialist Industry and Company Knowledge

If your outsourced company representatives aren’t aware of the specifications of your product, it can have devastating consequences. They won’t be knowledgeable enough to adhere to all the customer queries appropriately. Outsourced call centers deal with some companies. Therefore, they don’t have any industry-specific reps. Also, they aren’t aware of your company’s culture and hence aren’t able to reflect your unique brand to your potential customer.

  1. No Proper Control

In-house CSD provides you with adequate control over the technology and transparency through call center metrics. You won’t enjoy this privilege with a third party company. Therefore, you need to find a company that you can trust. You would be giving vital business functions to the third party, and therefore quality assurance can become a nightmare.

  1. Language Barriers

Every business has its targeted audience with some specific niche. With outsourced call centers, customers sometimes need to communicate with a representative that can’t speak their mother language well. Therefore, the rep isn’t able to properly guide and communicate. For customers, this is quite annoying, and they may get frustrated with your customer service. This can significantly hurt your brand image, and you may lose on potential business opportunities.

  1. Potential IT security risks

With cyber-terrorism on the rise, it’s imperative that you store your data 100% securely without taking any risks. Major brands have suffered cybersecurity breaches and lost millions in the process. By outsourcing your customer service department, you are putting your customer data in the hands of the third party. You will have to ensure that the outsourced call center is secure, trustworthy and GDPR compliant. In case there is a breach in the privacy of customer data, you’ll be losing major revenue and clients as well.

  1. Decreased Customer Satisfaction

An outsourced call center would certainly increase your productivity as a business owner. However, the other side of the coin is that it may result in lower customer satisfaction as well. For a sustainable business, it’s important to invest in high-quality recurring customers. If you let this job to another party, chances are quite high that you may end up with less satisfied customers.

  1. Hidden Costs

By hiring a call center, you should be saving money. However, this isn’t always the case. As representatives that aren’t experienced in your industry are answering customer queries, chances are you might be losing out on potential customers. Lost customers, canceled order and reduced reputation can do more harm to your business than saving a few hundred dollars from in-house representatives.

  1. Ethical Objections

If you’re running your business in the US and your reps are outside the states, chances are they don’t conform to the labor laws in the country. Workers in call centers are subjected to long working hours with minimum wage. You may not agree with this culture. However, you won’t be there to oversee the enterprise personally. These representatives are reported to suffer from health issues such as sleeplessness, digestive disorders, stress and much more. So if you’re hiring a company outside your region, you may be aggravating a persistent problem.

How to Hire an Outsourced Customer Service Department

With so much at stake, it’s important to do your due diligence before hiring any CSD company. You should critically evaluate the company’s data policies and practices. Also, make sure proper checks are in place for quality assurance, so standards are maintained in the longer run. While outsourcing, additional services are charged separately, therefore, request a quote that caters to those as well. This would make sure that you understand the pros and cons associated with outsourcing the CSD and make a rational decision afterward.

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