The market for contact center outsourcing, which was valued at USD 97.22 billion the year before, is anticipated to grow at a CAGR of 7.01% over the following five years to reach USD 145.88 billion.
Decision-makers increasingly outsource the difficulty of staying current with trends and developments by putting their faith in call center partners to deliver dependable, affordable customer service. However, whether your call center is internal or externally contracted, the customer experience must be a top concern for your company.
Businesses that outsource their contact centers are now able to offer customer support on social media. They assist businesses in monitoring and responding to queries, remarks, and complaints made by clients on social media platforms including Twitter, Facebook, and Instagram.
79% of users choose live chat support for quick responses, according to Freshdesk Chat 2021 report. Live chat has a 73% customer satisfaction rate, compared to 61% for email support and 44% for phone support. It has been determined that there is a 46-second wait time for live chat on average.
Key Areas Where Call Center Outsourcing Offers Competitive Edge
1.) Cost Efficiency: Companies in various countries can save around 30% to 90% of development costs if they outsource business functions to developing countries like Vietnam. Custom call center outsourcing services allows businesses to save on infrastructure costs, equipment, and human resources. Outsourcing to a specialized provider helps reduce overhead expenses and allows businesses to focus their resources on core competencies.
2.) Scalability and Flexibility: Internal call centers are labor-intensive. There’s continuous agent recruiting, hiring, and training—large call centers have a 44% turnover rate. Custom call center outsourcing services offer the flexibility to scale operations up or down based on business needs. Businesses can easily adjust the number of agents or services required to align with their changing customer demands, ensuring optimal resource allocation.
3.) Expertise and Specialization: 56% of call centers plan to invest in AI, 33% invest in process automation, and 31% use video chat. Outsourced call centers spend a lot of money on the equipment and software they need for customer service, quality assurance, and omnichannel customer support. Outsourcing providers specialize in call center operations and offer trained and skilled agents who are well-versed in customer service, sales, technical support, and other specific domains. Leveraging their expertise ensures high-quality customer experiences and improved customer satisfaction.
4.) 24/7 Support: Many outsourcing providers offer round-the-clock customer support, allowing businesses to cater to a global customer base and provide assistance at any time. This availability helps enhance customer satisfaction, particularly for businesses operating in different time zones or those with customers who require immediate support.
5.) Multilingual Support: Custom call center outsourcing solutions often provide multilingual support, enabling businesses to communicate with customers across different regions and languages. This feature is crucial for businesses expanding into international markets or serving diverse customer populations.
6.) Advanced Technology and Tools: Outsourcing providers invest in cutting-edge call center technologies, such as interactive voice response (IVR) systems, customer relationship management (CRM) software, call routing algorithms, and analytics tools. By leveraging these technologies, businesses can streamline operations, gather valuable customer insights, and optimize call handling processes.
7.) Enhanced Focus on Core Business: Outsourcing call center operations allows businesses to focus on their core competencies, such as product development, marketing, and strategic planning. By delegating customer support to specialized providers, businesses can allocate more resources to their primary business objectives, leading to increased efficiency and competitive advantage.
8.) Continuous Improvement: Outsourcing providers are often committed to continuous improvement and enhancing customer service capabilities. They regularly measure key performance indicators, conduct quality assurance checks, and implement process improvements to ensure optimal performance and customer satisfaction. This commitment to excellence can positively impact a business’s reputation and customer loyalty.
Here are some top reasons companies avoid outsourcing:
1.) 32 percent said the cost benefit did not make sense for their company
2.) 22 percent brought services back in house to avoid staff layoffs
3.) 20 percent were not confident in data/privacy security compliance of outsourcing partners
According to CGS 2021 trends study, it was concluded that an increasing percentage of businesses (both internally run and externally outsourced contact centers) were dissatisfied with the lack of technology in their facilities. This number rose from 10% in 2020 to 17% in 2021.
Additionally, cost plays a major role in for deciding an inbound call center outsourcing partner. A report published by Syrow highlighted that the average outsourced call center pricing by region.
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Region
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Outsourced Call Center Pricing (per hour)
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|---|---|
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The United States/Canada
|
|
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Western Europe
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$40+
|
|
Eastern Europe
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$12–25
|
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Australia
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$35–55
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Africa/Middle East
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$15–20
|
|
Latin America
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$8–18
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|
Asia/Philippines
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$8–14
|
|
India
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$6–10
|
If other costs are added including, training, phone systems, Office space, office supplies, fees, commissions, fees of as trainers, analysts, and quality assurance coaches, and more, these may add up to an additional $200K per year.
Risk and Challenges in Call Center Outsourcing
While call center outsourcing offers numerous benefits, there are also potential challenges and risks that businesses should consider.
1.) Data Security and Privacy: When outsourcing call center operations, sensitive customer data and confidential information are shared with the service provider. VoiceBase Report reveals business incurs $150 loss per customer for the data breach. It is crucial to ensure that the outsourcing partner has robust security measures in place to protect data from breaches, unauthorized access, or misuse. Adequate contractual agreements and data protection protocols should be established to address these concerns.
2.) Communication and Language Barriers: If the outsourcing provider operates in a different geographic location, there may be potential challenges in communication and language barriers. Misunderstandings or language issues can impact the quality of customer interactions and lead to customer dissatisfaction. Thorough evaluation of the outsourcing provider’s language capabilities and accent training programs can help mitigate this risk.
3.) Quality Control and Training: It is pivotal to ensure that 100% of calls are being taken at the highest level of service. Maintaining consistent service quality across outsourced call centers can be a challenge. Businesses should ensure that the outsourcing provider has robust quality control mechanisms in place, including regular performance monitoring, training programs, and adherence to service level agreements. Regular communication and collaboration with the outsourcing partner are essential to align expectations and maintain service standards.
4.) Cultural Differences and Customer Experience: Call center agents represent the business and interact directly with customers. Cultural differences between the outsourcing provider’s location and the business’s target market may affect the customer experience. It is important to select an outsourcing partner that understands and respects the cultural nuances of the customer base to ensure effective communication and customer satisfaction.
5.) Transition and Integration Challenges: Outsourcing call center operations involves careful planning and seamless integration with current systems and procedures. There may be challenges in transitioning knowledge, transferring data, and aligning workflows. Thorough planning, open communication, and a phased approach to transition can help mitigate these risks.
6.) Reputational Risk: Outsourcing call center operations means entrusting the service provider with the brand’s reputation and customer interactions. Any negative experiences or poor service quality can reflect poorly on the business. Thorough due diligence in selecting a reputable outsourcing partner with a track record of delivering excellent customer service is crucial to mitigate reputational risks.
7.) Dependency on a Third-Party Provider: By outsourcing call center operations, businesses become dependent on the outsourcing partner’s performance and availability. If the outsourcing provider experiences disruptions, staffing issues, or financial instability, it can directly impact the business’s ability to provide consistent customer support. Conducting regular performance reviews, maintaining open lines of communication, and having contingency plans in place can help mitigate these risks.
Maximize the advantages of Call Center Outsourcing
According to research from Deloitte, 28 percent of companies with outsourcing partners are of a view that they could have avoided certain issues by understanding the value of a Request for Information (RFI).
A growing percentage of businesses (up from 10% in 2020) were unhappy with the absence of technology in their contact centers (both internal and outsourced), according to CGS’s study on trends for 2021. Lack of access to emerging technologies, including Artificial Intelligence or machine learning, are contributing to this dissatisfaction.
To overcome the doubts among customers, here are some ways to maximize the Pros of your call center Outsourcing”
1.) Define Clear Objectives: Clearly define your objectives and expectations for outsourcing call center operations. Identify the specific outcomes you want to achieve, such as cost savings, improved customer satisfaction, or increased efficiency. This clarity will help you select the right inbound call center outsourcing partner and align their services with your business goals.
2.) Choose the Right Outsourcing Partner: Thoroughly evaluate and select an outsourcing partner that aligns with your business requirements and values. Consider factors such as industry experience, expertise, reputation, service offerings, scalability, technology capabilities, and cultural compatibility. Request references, conduct site visits, and engage in detailed discussions to assess their capabilities and ensure a good fit.
3.) Establish Effective Communication Channels: Communication is key to successful outsourcing. Establish clear and effective communication channels with your outsourcing partner. Define reporting structures, frequency of updates, and key performance indicators (KPIs) to monitor and evaluate their performance. Regularly engage in discussions, provide feedback, and address any concerns promptly.
4.) Invest in Knowledge Transfer: Facilitate a smooth knowledge transfer process to ensure the outsourcing partner understands your business, products, services, and customer base. Provide comprehensive documentation, conduct training sessions, and encourage open dialogue to transfer domain knowledge effectively. This will help the outsourcing team represent your brand accurately and provide excellent customer service.
5.) Collaborate on Process Alignment: Work closely with the outsourcing partner to align processes, workflows, and service level agreements (SLAs). Clearly define performance metrics, quality standards, response times, and escalation procedures. Ensure that the outsourced call center seamlessly integrates with your existing systems, such as CRM platforms, ticketing systems, and knowledge bases.
6.) Foster a Strong Partnership: Treat your outsourcing partner as an extension of your business and foster a strong partnership. Promote a collaborative and mutually beneficial relationship based on trust, transparency, and shared goals. Encourage regular meetings, joint problem-solving, and continuous improvement initiatives. Consider periodic on-site visits to enhance the partnership and build rapport.
7.) Monitor Performance and Provide Feedback: Regularly monitor and evaluate the performance of the outsourced call center operations. Review performance reports, analyze KPIs, and provide constructive feedback to the outsourcing partner. Conduct regular performance reviews, identify areas for improvement, and collaborate on implementing necessary changes to optimize service quality and efficiency.
8.) Leverage Technology and Analytics: Take advantage of technology and analytics solutions offered by the outsourcing partner. Leverage tools such as CRM systems, call recording and monitoring software, data analytics platforms, and customer feedback mechanisms. These tools can provide valuable insights into customer behavior, identify areas for improvement, and drive strategic decision-making.
9.) Maintain Flexibility and Scalability: Maintain flexibility and scalability in your outsourcing arrangement. Regularly assess your business needs and adjust the resources, staffing levels, and service offerings accordingly. Ensure that the outsourcing partner has the ability to scale operations up or down as per your requirements, especially during peak seasons or market fluctuations.
10.) Continuously Improve and Optimize: Embrace a culture of continuous improvement and optimization. Regularly review and analyze customer feedback, performance metrics, and industry trends. Encourage innovation, share best practices, and collaborate with the outsourcing partner to identify opportunities for process enhancements, cost savings, and service improvements.
By following these tips, you can successfully implement custom inbound call center outsourcing and maximize its advantages to drive customer satisfaction, operational efficiency, and business growth.
Because of the expenditures associated with infrastructure, staffing, and training, establishing an internal call center can be expensive. On the other side, outsourced call centers can be incredibly cost-effective for your company.
Read More About Call Center in these blogs
1.) BPO and call center: What to choose for your business?
2.) How Indian Call Centers Help Businesses Improve Customer Experience
3.) Impact of Call Abandonment Rate in Call Center Services
To discover more benefits of outsourcing customer and technical support, reach out to JindalX.
