Pros n Cons of Outsourcing Customer Service Department

Elison Evan Expert Reviews


Outsourcing is a common business practice in terms of out-house hiring. Outsourcing a service refers to hiring an outside service provider or company as per a business need or requirement rather than hiring a team of employees to work internally. While many companies opt for outsourcing in the same city or country but outsourcing services go as far as offshores. 

Outsourcing a customer service department for the company means that you are hiring a third party to handle customer service deeds and functions which includes educating a customer of a service's or product's potential uses and pursue them to purchase it, answering customer queries, and providing troubleshooting before, during, and after the purchase of a product or service. Outsourcing a customer service department is highly predictable and this has a huge impact and revenue on the market. The option of outsourcing as a solution pitches in when ventures have to manage with scarce resources. However, outsourcing customer service department has its pros and cons as mentioned below:


Save Cost and Engagement: Many companies believe that engaging their company human resources towards solving customer service issues diverts the focus from the core task. On the other hand, training in house customer support service is an expensive deal. Outsourcing customer care services spare a company's budget and in-house resources. Outsourcing is cheaper and the outsourced companies hire employees with exceptional training in the same sector and total dedication to one task which improves the image of the company's customer service. Outsourcing can get your expertise at low costs. 

Increase speed: Outsourcing companies have the expertise, the insight, resources, and tools to ramp up your customer service department scale and offer support to seasonal call volumes. The customer service sector also requires long hours from the employee. Since the outsourcing companies hire employees in the hundreds to provide the same service for multiple customers, the huge strength gets your work done faster. 

Availability: The outsource customer support is available round the clock and seasons. You don't need to look into hire and leaves, even though during festive holidays most of the offshore companies are ready to provide customer support which reflects well on your brand image. Moreover, since the outsource owner receives huge financial incentives, they are obliged to provide quality service.

Innovation: As the technology moves faster, the outsourced company helps you tap into the new base. More or less your company is connected to the knowledge base of innovation. With each advancement, the HR of the company is relieved from finding the training and the perfect employee for this. It's all the responsibility of the outsourced companies.  


As the saying goes every shiny thing is not silver so goes for outsourcing companies. Many companies claim to be the most disciplined customer care provider with the flexibility that suits you. Nevertheless, there few cons of this shiny spoon in the business industry as mentioned below:

Brand Image Risk: If you are a supplier of products and services, customer care is one of the important aspects of maintaining your brand image. The first thing your converted customer remembers is the quality of the product and second is your customer service. In such scenarios outsourcing becomes a risky option. The customers always notice your customer service representative's attention to the issue, how they interact, and how the complaint is further handled and if your choice of an outsourcing company is unfortunate it can seriously damage your brand image.

Situations Out of Control: The biggest con of outsourcing companies is when situations get out of control and damage is done. You can't just walk to the department and ask your employees to immediately fix the problem nor can you impose your training and rules. Each outsourced customer service company has their own training, rules, and discipline. Even though the outsourced company employees try their best to handle the situation but they only follow a fixed protocol which forbids them to take any decision as per not assigned even if it calms the situation.

Loss of Feedback: One of the major tasks of in house customer support is collecting the customers' feedback to develop your product according to the market and improve service. Feedback helps with learning and measuring customer behavior. With most of the outsourcing customer care, there is no possibility of collecting the feedback directly and effectively. This could be done by opting for additional services by them. However, the direct customer bond is effective and the feedback method can not be tailored. 

Customer Data Confidentiality: Data breaching has become more of an ethical issue with legal consequences. In circumstances of continuous data loss and breach, many customers tend to limit their data and interaction. The lack of customer data also creates an obstacle in measuring business success and the improvement of the product. Outsourcing companies are a blind shot for trust. When you hire a outsource customer care company you are trusting them with all information and links between you and your customers. Today, the data breach has become a child’s play and people are comfortable proving lesser information. Another disadvantage of outsourcing your customer service department is that your data can be easily sold and purchased without your knowledge.

The customer service department is an essential part of the company regardless of the sacred resources. customer service enhances the customer knowledge and experience towards the product. customer service plays an important role in generating revenue the higher the customer satisfaction is, the better the unpaid recommendation of the customer to the social circle is. These customer service departments are also used as a means of marketing for the product. The employees specifically track the number of a chosen area and proceed to put your product out there. It is the responsibility of the outsourced company to main public relations and creates positive company culture. 

Despite the cons mentioned above, it is almost necessary for the companies to find a way to benefit from the outsourcing company by comparing the services, charges, reliability, and security measures for data protection