INFLUENCE OF OUTSOURCING ON CUSTOMER SERVICE

INFLUENCE OF OUTSOURCING ON CUSTOMER SERVICE

What outsourcing is?

Outsourcing business is a practice in which a company employs other companies or individuals to carry out their tasks, handle operations, or provide services that are usually carried out previously by company employees themselves. Outsourcing of business is done both domestically and internationally but most of the time the companies outsource their business to offshore countries as it is more cost effective in most of cases.

What customer service is?

Customer service is the support and assistance a company offers to its customer, both before and after buying and using company’s products or services. The services that comes under customer support are the accurate guidance to the customer about product/service according to the needs of customer, help in purchasing, dealing with complaints and queries and increasing the level of satisfaction of the customer regarding the product and services of the company. Customer service is a key to retain the revenue and expansion of a business.

Influence of outsourcing on business sector

Outsourcing of business has been in practice for more than 70 years for now by multiple companies and the industry is nurturing even more with the coming years. The outsourcing of business is usually done from the first world countries to the third world countries, but this pattern is surely not restricted.

Outsourcing is not only done by the established companies but is practiced more by the developing companies as it is more cost effective for the companies with initial setups. If compared, the cost of setting up own customer support team, with hiring a company fully equipped with all the infrastructure and employees, it is clearly understood, that outsourcing will be much cost effective.

Outsourcing not only benefits the local companies in utilizing the capital effectively, but also provides the employment over the seas and helps the funds to be circulated internationally. This not only establishes the economy of the state but also strengthens it worldwide.

As the outsourcing has given a boost to the business sector in past years, it also has badly affected the business sector by involving in fraudulent activities. Many established companies faced a great loss after outsourcing some of the business, as it resulted in the fraudulent agreements and the hacking of sensitive data. However, there are precautionary measures to eliminate the risk of any mishap to the maximum.

Every company must conduct a detailed analysis of its vision and strategy before deciding to engage any part of its activities in outsourcing. Offshore outsourcing is mostly seen as a key tool for cost reduction. However, there are some always some challenges related to outsourcing that the company faces when starting this process. Additional costs for the choice of vendors, legal costs, transition costs will definitely be incurred. Therefore, despite the obvious savings that can be realized, many outsourcing providers have been unable to identify their ability to deliver a positive return of investment to their customer companies, especially in complex projects.

Influence of outsourcing on customer sector

Outsourcing increases the predictability and stability of daily customer service and user satisfaction. With a well-implemented outsourcing strategy, things like web application maintenance, 24/7 customer service and updates can be completed faster, resulting in more satisfied users. In addition, the time zone difference can serve as a benefit to the planned task execution. If a company is looking forward for a 24/7 customer support, outsourcing the customer service will be the most beneficial and considerable option in terms of work efficiency, cost management and providing services due to the difference of time zone within countries.

However, outsourcing the customer support does affect the trust building with the clients in some ways. Most of the customers do raise the concerns that if their business is not looked after in the same country, the outsourced agents won’t be able to understand the scenarios and product exactly. Some of the times, customers prefer to go for the companies based domestically. Though, these elements can be eliminated before initiating outsource business.

Conclusion

Customer support outsourcing applies to all customer service principles that not only help customers resolve and make better decisions about themselves, but also function as part of sales and partial technical support. Outsourcing business has been influencing and setting new trends in the growth of companies on smaller and larger scales from years apart from the presence of some risk taking factors, the future of the outsource industry is flourishing rapidly and will be considered as a must for every business running and initiating.

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