In-house vs Outsourced Call Center: Which One to Pick?

Providing positive customer service is the key to success. Because 94% of customers say that positive service experiences make them more likely to purchase again.

Call centers are an integral part of every company for customer support and business success. They have a wide range of uses, from handling customer calls to increasing sales and generating business leads. Whether an in-house or outsourced call center, their role in today’s business world is important at their own place.

But here’s a dilemma you might be facing: should you keep your company’s call center operations function with an in-house call center? Or should you rely on a third-party service provider for outsourcing?

This decision is all about control, quality, and the future growth of your business.

This blog covers in-house call center and outsourced call center in detail so you can choose the best option for your company. Let’s make the right choice.

Table of contents:

• What is an In-House Call Center?
• What is Outsources Call Center?
• In-house vs Outsourced Call center: The Difference
• Which is Better for You?

What is In-House Call Center

An In-House call center as the name sounds, all the call center activities happen within the organization. Be it agents, call flows, phone infrastructure, and management, everything happens within the organization.

The company itself hires and manages the team members, using its own resources to handle customer inquiries, provide support, and facilitate direct communication.

An in-house call center team is responsible for handling all call center operations.

Benefits:

• Complete control over operations
• Direct oversight of employees
• Ability to tailor customer service to the brand’s specific needs

Drawbacks:

• Higher operational costs
• Requires significant investment in infrastructure and technology
• Requires Management and Training
• Potentially limited scalability

What is Outsourced Call Center

An outsourced call center is a business model in which a company hires a third-party service provider to plan and manage its customer services and specific call center functions. This is also called business process outsourcing (BPO), which involves handing various business functions to third-party experts.

Benefits:

• Access to specialized expertise and advanced technology
• Greater scalability and flexibility
• Risk Mitigation

Drawbacks:

• Lack of control over operations
• Potentially inconsistent customer service quality
• Risks related to data security and brand alignment
• Language Differences

Inhouse vs Outsourced Call Center: The Difference

The difference between an Inhouse or Outsourced call center is explained below; let’s take a look-

Factor	In-house Call Center	Outsourced Call Center
Control	In-house call centers offer high control as your company manages overseas operations directly.	Outsourced call centers offer less control as a third-party provider manages the call center operations.
Cost	In-house call centers are high in cost because of the infrastructure and staffing required.	Outsourced call centers are less in cost because they leverage the resources of a third-party provider.
Scalability	In-house call centers have limited scalability as expanding operations is challenging and costly.	Outsourced call centers are highly scalable and easily adjust to changes in your business volume.
Quality control	In-house call centers have direct oversight, providing complete control over quality standards.	Quality control in outsourced call centers relies on a third-party provider, which can result in variability.
Specialization	Specialization in In-house call centers relies on the company’s internal capabilities.	Outsourced call centers provide access to specialized expertise from the provider.
Brand alignment	In-house call centers ensure high brand alignment with consistent representation.	Outsourced call centers’ alignment can vary, depending on the provider and how well they align with your brand’s values and standards.

Which is Better for You?

Choosing the right option requires extensive research and a well-informed understanding of your objectives.

Deciding whether an In-house or outsourced call center is better for your business depends on your specific needs and preferences. It involves many factors, such as cost, control, scalability, and your business needs. Finding the best option for your business is an important step.

Before selecting and deciding to set up a call center, it is essential to be familiar with your goals. For this, you need to ask a few questions.

Consider the following questions to guide your decision:

• What is your budget for customer service operations?
• How important is direct control and oversight of the call center to you?
• Do you have the resources to invest in and manage an in-house call center?
• Is scalability and flexibility a priority for your business?
• How important is maintaining brand consistency in your customer service interactions?
• Do you want to provide high-level customer support for your customer experience?

If greater control, privacy, brand consistency, and a high level of coordination are your top priorities, an In-house call center may be a good fit. However, In-house call centers tend to cost more.

Furthermore, if your priorities are cost savings, scalability, and access to specialized expertise, outsourcing may be the way to go.

Key Takeaways

Making an informed decision to optimize your customer service operations is vital for the success of your business!

Choosing between in-house and outsourced call centers depends on your business needs, preferences, and resources.

Both options have their benefits and drawbacks, summarized above.

Selecting the right choice will align with your cost, scalability, and brand consistency goals.