A Guide to Outsourced Call Center 

by Team goCx | Updated On: October 9, 2024

Does your business need help to keep up with customer inquiries? Are long wait times and frustrated callers hurting your brand image?

Managing an in-house call center can be a complex and costly endeavor.

This is where outsourced call centers come in. By partnering with a specialist provider, you can elevate your customer service strategy without the burden of recruitment, training, and infrastructure management.

But is outsourcing right for you? And how do you navigate the process?

This blog will answer all your questions about outsourced call centers.

Table of Contents:

  1. What is an Outsourced Call Center?
  2. How does Outsourcing Work?
  3. Benefits of Outsourced Call Centers
  4. Limitations of Outsourced Call Center
  5. Outsourced Call Centers FAQs

What is an Outsourced Call Center?

An outsourced call center is a service a third-party organization provides to handle incoming and outgoing customer calls on behalf of another business.

Companies outsource their call center functions to specialized service providers for various reasons, such as cost-efficiency, scalability, expertise, and flexibility.

Outsourced call centers often provide services like customer care, technical assistance, telemarketing, sales, appointment scheduling, etc.

How Does Outsourcing Work?

Outsourcing a call center involves handing over the responsibility of managing customer interactions to a third-party company.

Here’s a breakdown of the process:

1. Define Your Outsourcing Goals

Begin by examining your call traffic, peak hours, and the types of inquiries your customers frequently make.

2. Choose a Suitable Partner

Research and compare outsourcing providers based on experience, expertise, pricing models, and ability to handle your specific needs (language, technical support, etc.).

3. Create a Contract and Service Level Agreements (SLAs)

You need a formal contract that specifies service expectations, pricing, and performance measures (such as phone answer times and resolution rates). SLAs ensure that all parties are on the same page about quality and delivery.

4. Provide Knowledge Transfer and Training

You must provide the outsourced call center with information about your products, services, and customer service procedures. They train their agents to represent your business and respond to customer inquiries successfully.

5. Implement Call Routing and Technology

The call center interacts with your existing phone system or uses a cloud-based solution to route calls to agents. They may also employ specialized software to track calls, manage customer data, and provide reports.

6. Maintain Ongoing Communication and Performance Management

Regular communication ensures a smooth operation. You must track critical indicators and give feedback to the call center to ensure continual improvement.

Benefits of Outsourced Call Centers

1. Cost-Effective

Collaborating with an external service provider can save money on expenses such as employing and training in-house employees, investing in infrastructure and technology, and managing operational overheads.

Outsourced call centers frequently adopt a pay-per-use approach, which allows you to scale your services based on demand, lowering fixed costs and enhancing cost-effectiveness.

2. Boosts Agent Response Times and Efficiency

Outsourced call centers ensure customer issues are resolved quickly and effectively by employing dedicated call center operators trained to handle customer inquiries.

By utilizing technology tools and optimized operations, it allows faster call handling, shorter wait times, and higher customer satisfaction.

3. Meets Customer Expectations

Professional call center agents in an outsourced call center undergo extensive training to understand the products, services, and brand values of the companies they support. This helps them deliver personalized experiences that align with customer expectations as well as the brand’s standards.

4. Provides Around-the-Clock Support

One of the primary benefits of outsourcing call center services is the ability to provide 24/7 customer support.

This continuous support enables you to adapt to a global customer base, accommodate multiple time zones, efficiently manage peak contact volumes, and maintain customer satisfaction even after regular business hours.

Limitations of Outsourced Call Center

1. Collaboration Bottlenecks 

One of the limitations of outsourced call centers is the potential for collaboration bottlenecks between you and the external service provider.

Communication barriers, disparities in work cultures, and distance can all impede successful collaboration and coordination between the two parties.

Misalignment in goals, practices, or expectations can cause delays in addressing issues, responding to customer requests, or making changes, affecting overall service quality.

2. Language Barriers

Language limitations can be problematic in outsourced call center operations, mainly when the service provider is in a foreign region or nation.

Different accents, linguistic skill levels, and cultural nuances can all impact the clarity and understanding of communication between call center representatives and customers.

Language difficulties can cause misunderstandings, delays in issue resolution, lower customer satisfaction, and reputational hazards.

3. Data Security Concerns

Outsourced call centers that handle sensitive consumer information may cause data security risks.

Sharing confidential data with external service providers, such as personal information, payment information, or account credentials, can put organizations at risk of data breaches, unauthorized access, or consumer data misuse.

Reducing data security risks connected with outsourcing call center operations, ensuring compliance with data protection rules, deploying strong security measures, and conducting frequent audits are critical.

4. Lack of Industry Knowledge

Another limitation of outsourced call centers is the potential lack of industry-specific knowledge or expertise among call center agents.

External service providers may work with multiple customers across various industries, resulting in a generalist approach rather than specialized domain knowledge.

This lack of in-depth understanding of the business, products, services, and industry nuances can impact the quality of customer interactions.

Outsourced Call Center FAQs

What factors should businesses consider when selecting an outsourced call center provider?

Businesses should consider factors such as the provider’s reputation, experience, technology capabilities, language support, pricing structure, location, and ability to align with specific requirements.

How can businesses ensure data security when outsourcing call center operations?

Businesses can ensure data security by implementing robust security measures, conducting regular audits, defining data access permissions, ensuring compliance with data protection regulations, and signing confidentiality agreements with the service provider.

How can businesses address language barriers in outsourced call center services?

To address language barriers, businesses can provide language training to call center agents, implement language support tools, offer multilingual scripts, monitor call quality for communication clarity, and conduct regular feedback sessions to improve language proficiency.

How can businesses maximize the benefits of outsourced call centers while overcoming collaboration bottlenecks?

Businesses can maximize benefits and overcome collaboration bottlenecks by establishing clear communication channels, defining roles and responsibilities, setting performance expectations in Service Level Agreements (SLAs), conducting regular meetings, fostering a culture of transparency, and providing ongoing training and feedback to ensure alignment between the business and the service provider.

Team goCx