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Outsourcing: Does It Work?

26 June 2018

As technology makes the world smaller and smaller, many companies have chosen to outsource some of their less important aspects of the business to other businesses, sometimes halfway around the globe, in an effort to cut down on costs and use the talents of those who live far away from your main business.

One of the most common aspects of businesses that gets outsourced is customer service. For a lot of companies, the cheapest option will do – most of these companies don’t care about what their customers think. Sometimes it’s due to having enough customers to not have to worry about a small amount of them having problems, but most of them are simply overconfident and won’t acknowledge the damage that bad customer service can do to a brand’s reputation.

Despite this, outsourcing customer services can be a wise business decision depending on what type of customer you work with. B2B companies will want to ensure a close and in tune relationship with their customers, which would make outsourcing a poor alternative to in-house customer service. Consider whether your customer’s queries can be answered with a simple FAQ page on your website, as this could reduce the amount of customer service calls.

Also, while outsourcing is the cheaper option when compared against an in-house team, it can end up being more expensive than it needs to be. You may end paying for a huge customer service team that only receives 5 or 10 customer queries a day. A lot of customer service providers may also produce extra benefits for your team, such as customer service data analysis, call recording and so on, but a lot of them don’t.

Also by putting your customer service in another company’s hands, you risk damaging your brand if the customer service company you’ve outsourced to turns out to be very poor at their job. 70% of customers have stopped using a company’s products or services after poor customer service, so make sure you pick a good customer service firm to represent your brand to the public. At the Change Consultancy, we’re excited about taking new technology, methods and workplace philosophy to reinvigorate companies and get them running at maximum efficiency in an age where change is fast and confusing.

Ryan Shotton