The Complete Guide To Understanding What is Customer Support Outsourcing?

What is Customer Support Outsourcing?

Customer support outsourcing involves hiring teams through Business Process Outsourcing (BPO) companies to handle customer service. Any small, mid-level, and large businesses that drive their tasks via a third-party call center for increased efficiency and reduced cost are outsourced customer service operations. 

Customer support outsourcing is one of the largest operating business sectors in the world. It helps companies handle customer service more efficiently through business process outsourcing.

Some of the standard services include:

• Voice support (call-center) 
• Email support 
• Live chat support 
• SMS support 
• Social media management 
• Technical support 
• E-commerce support 
• Logistic support 
• Customer care support
• AI-driven customer support outsourcing

The type of support, service, quality, and scope differs depending on the client’s line of business, fields, expertise, needs, and the provider’s bandwidth. As a business leader, you outsource selected services or go for a comprehensive BPO solution to stay ahead of the competition and meet your business goals. 

All of this and more contributes to the fact that the customer support industry is rapidly evolving. Around 70% of companies outsource their operations to reduce costs. 

So, now that you know what customer support outsourcing is, what its demand is, and how it has become a reliable resource for many companies, let's move ahead to the next segment of our guide. Its benefits, pros and cons, and much more. 

What are the 8 Benefits of Outsourcing Customer Service?

Choosing to outsource customer support offers multiple benefits, notably improved service quality. Some benefits of customer support outsourcing include reduced costs and the ability to focus on core business growth. Outsourcing helps enhance customer satisfaction, customer loyalty, build trust, and amplify business success.

You can make improved decisions once you get acquainted with the benefits of customer support outsourcing. This information will help you create a robust outsourcing plan and stay ahead of the curve. 

Let’s look at the eight benefits of outsourced customer support in detail. 

1. Cost Savings

The prime reason for leaders to outsource is because it reduces operational expenses. According to Deloitte, 57% of business leaders outsource their operations to cut costs. When you partner with a third-party vendor to take care of your customer service, you already eliminate the need for: 

• Investing in a physical office space, infrastructure, and IT tools. 
• The time and money spent on hiring, onboarding, and training. 
• Paying high salaries and benefits to in-house teams. 
• Paying electricity bills, water and internet, etc. 

Also, if you’re thinking about the pricing, don’t worry. BPO providers give you a range of pricing models to choose from. It varies from fixed fees to hourly rates. You can also pay per project or take a subscription, which will be a recurring fee for scalability. 

2. Get Access to Skilled Experts

When you choose to outsource, it gives you access to numerous skilled and experienced professionals. The BPO you select will have teams of trained support agents and customer support representatives to seamlessly handle all your customer queries. 

In addition, many providers have a dedicated team specializing in multilingual and multicultural support. This makes it easy for companies to segregate and select agents from various regions who can communicate with customers in their preferred languages. 

Agents who are polyglots and come from various cultural and linguistic backgrounds tend to resolve issues faster, enhancing trust and customer satisfaction. 

3. Leverage Top-Notch Solutions

Customer support outsourcing companies also offer top-notch technology solutions. They use advanced tech to fasten customer response time and ensure correct query resolution. 

Outsourcing companies or BPOs leverage the technologies mentioned below to enhance the customer experience. 

• Artificial intelligence (AI) powered support and machine learning
• Robotic process automation (RPA)
• Cloud computing 
• Omnichannel software 
• Service level agreements (SLA)
• Customer relationship management (CRM) system 
• Word-processing and workflow management platforms 

These technologies ensure smooth operations and elevate the overall customer experience.

4. Enhanced Flexibility and Scalability

As a business leader, choosing outsourcing allows you to scale customer service operations rapidly. All you need to do is convey your business needs, and the provider will adjust resources accordingly. They can segregate it as per market demands, too. 

In addition, they can: 

• Handle fluctuations in customer demand with ease.
• Expand support during busy seasons or spikes in activity.
• Use chatbots and RPA to provide 24/7 assistance.
• Offer multilingual support to help businesses grow globally.

Such flexibility enables you to stay ahead of the curve, makes you agile, and positively impacts your company’s bottom line. 

5. Personalized Customer Service Teams

Personalization is the key to providing high-quality customer support and achieving company success. It acts as an advantage. Most brands and companies want to partner with an outsourcing company that provides a personalized experience with personalized teams.

Various BPOs use multiple tactics to make customer engagement more effective and personal. 

• Collecting customer data to tailor solutions.
• Segmenting customers by buying behavior to offer customized support.
• Using integrated communication tools for consistency.
• Addressing customers by name and showing familiarity with their concerns.
• Sending personalized recommendations, emails, and updates.
• Gathering feedback after each interaction for continuous improvement.

Ensure you select the right prover with well-trained agents to assure your customers feel valued and understood. 

6. Prioritize Core Business Goals

When you take one major operation off your shoulders via customer service outsourcing, you’ll have enough time and resources to prioritize your business functions. Customer support is essential and requires constant attention, staffing, and infrastructure. Thus, outsourcing helps to tick one thing off your priority list. 

Customer support outsourcing can shift your focus to strategic initiatives. Such initiatives include product development, business operations, and market planning. This qualifies you to generate leads and drive revenue, giving you a competitive edge.

7. Robust and Enhanced Data Protection

Any outsourcing company or BPO will consider data security as its ultimate priority. They have set protocols to follow security guidelines to protect sensitive customer information and confidential business secrets.

Let’s look at some standard security measures BPOs take to protect data. 

• Signing confidentiality and non-disclosure agreements (NDAs).
• Using secure encryption, firewalls, and data access controls.
• Complying with data protection laws like GDPR.
• Backing up and recovering data regularly.
• Conducting audits to identify security risks.
• Training staff on data security best practices.
• Ensuring no SLA breach.  

These crucial measures and codes of conduct help protect your data from cyber threats and breaches. 

8. Deliver High-Quality Customer Support Service Quality 

Outsourcing ensures that your customers receive exceptional service. BPO providers carefully select and train their agents to meet high standards.

They also use knowledge-based management systems to give agents easy access to accurate information. These systems include product details, troubleshooting guides, and best practices.

Additionally, providers monitor performance through regular quality assurance processes. They review agent interactions, identify areas for improvement, and make necessary adjustments to maintain service excellence.

By outsourcing customer support, businesses can focus on growth while ensuring customers receive reliable and professional service. With these benefits, outsourcing becomes a strategic tool for long-term success.

5 Types of Customer Service Outsourcing

Outsourced customer service is effective for companies in handling customer problems without involving internal teams. It helps in providing good services at a very low cost. Depending on your line of business, you can choose various outsourced customer support type services. 

Let’s take a look at them one by one to gain an in-depth understanding. 

1. Onshore Outsourcing

Onshore outsourcing customer support type that refers to onboarding or partnering with an outsourcing company from your home country. It becomes a wise choice for companies who want cultural familiarity and barrier-free customer communication. 

Naturally, onshore outsourcing agents will share a common background and culture and can easily connect with your customers if you cater to only your country. It helps improve customer experience and eradicates errors or misunderstandings. 

An excellent outsourcing option for companies where you need enough local or regional knowledge. For example, healthcare or country-specific services/products. But it usually comes at a higher cost than offshore and nearshore outsourcing. 

2. Offshore Outsourcing

Offshore outsourcing involves choosing customer support outsourcing in BPOs from other countries. Some popular countries in this list include the Philippines, India, and Eastern Europe. 

Offshoring is a cost-effective type of outsourcing that offers access to a large talent pool. 

It offers 24/7 support due to the difference in time zone, which is one of the key advantages. For instance, when your onshore team logs out, the offshore team will still be working and taking calls or resolving tickets. Ultimately, you’ll have happy customers by the end of the day. 

However, businesses must maintain language and cultural differences with diversity and inclusion for a smooth experience for customers and agents. 

Also Read: What’s the best between Offshore vs. Nearshore Outsourcing

3. Nearshore Outsourcing

The name is self-explanatory: nearshore outsourcing means partnering with BPOs in neighboring countries. For instance, if you’re a company in the U.S.A. and you want to outsource your customer service. You choose an outsourcing company in Mexico or Canada. It helps you maintain a balance in costs and convenience. 

You can easily coordinate with the agents or the team leaders since you will share a similar time zone. It makes collaboration easier. An option that helps eradicate cultural differences while offering fair pricing models. 

Overall, it is a middle-ground option for company leaders who want quality at an affordable price. 

4. Multilingual Outsourcing 

Are you a company with a global reach or catering to more than two countries? In such a scenario, multilingual outsourcing is a feasible option. It focuses on offering customer support outsourcing in multiple languages. Thus ensuring your service values and respect for each customer. 

If you’re into travel, e-commerce, or tech business, this type of outsourcing is best for you. Partnering with a multilingual outsourcing provider helps you maintain consistent service standards across geographies and customer bases.

5. Specialized Outsourcing

Specialized outsourcing focuses on specific tasks or channels. Examples include technical support, live chat, social media management, or email handling. This approach is beneficial for companies looking for expert assistance in niche areas.

For instance, a tech company might outsource its IT support to professionals who efficiently troubleshoot complex issues. Similarly, e-commerce businesses might outsource social media to manage customer inquiries on platforms like Instagram or Twitter.

Thus, you must know how to choose the right outsourcing partner depending on your budget, needs, and project goals. Whether you’re doing onshore or multilingual outsourcing, keep your needs clear, and you’ll have multiple options.