As a way to save on costs and focus more on other things, some companies are outsourcing their call centers. While replacing an in-house call center staff with an outside vendor often saves a lot of money, there are many disadvantages associated with this practice, and today we are going to find out the downside of outsourcing your call center.
Because outsourcing involves moving your call center operations outside your business base, you will, without a doubt, have less control over what happens there. You must rely on the managerial abilities of the vendor company, while doing your best to ensure that it can adapt to your business ethics of operations and uphold good customer service.
It may create a hardship for your customers or at least the perfection of reduced quality service on your behalf when you outsource your call center to a foreign country. Customers may get frustrated if the call agent doesn’t speak fluent English or speaks with a heavy accent that is hard to understand. This might cause them to go to a different company since they feel like their needs are not being met.
Companies that deal with highly sensitive information may run the risk of the breaching of customer confidentiality when they outsource their call center overseas. A company that handles medical patient information, for example, needs to be certain that the operation procedures used by the new call center is 100% secure. This requires the outsourcing company to be very selective when choosing to handle this type of phone calls.
Companies that outsource their call center operations likely need to eliminate jobs of current employees. While this saves a lot of money in labor costs, it can also mean jeopardizing the livelihood of many long-term employees of the company. It can also harm companies with public relations standpoint if the local population resents the jobs being sent overseas.
Whether you outsource to a native or foreign company, you may run the risk of a lack of focus. While an in-house call center is totally focused on your business, an outside vender’s representatives may not care about your company. As a result, they may not deliver the same level of customer service you used to receiving.
Many studies have been done on this issue, and they all show that when a call center is outsourced overseas, customer satisfaction decreases significantly. This is likely due to a combination of linguistic and cultural barriers or decreased control over business functions.
When outsourcing a call center operation, there are often hidden costs that can be overlooked. Costs associated with unforeseen legal issues, hiring a lawyer who is well versed in international law, losing customers due to poor customer satisfaction and the cost of re-acquiring lost customers can all significantly impact your business.