Why do companies outsource customer services? 5 key reasons.

Why-do-companies-outsource-their-CX__1200x628Today’s interconnected business-scape is defined by choice.

For consumers, millions of service provider options are just one click away. For businesses seeking their share of the market, finding differentiators and unique selling propositions is key in separating from the chasing pack.

To put it succinctly – for the modern consumer, there are very few real differences between your business and your competition.

So, how do you set yourself apart, ensure that your business isn’t leaking value, and provide the experiences your customers demand – the experiences that will keep them coming back for more?

To unlock growth, reduce churn, delight customers and connect to curated, industry-approved solutions, more and more businesses are turning to outsourced customer services.

Check out our Sourcefit Blog to answer the question: why do companies outsource customer services, and connect your business to affordable, high-end customer care

Why do companies outsource customer services? 5 key reasons.

Sources: Prediction: The future of Customer Experience | McKinsey
Why Customer Service is Important: 16 Data-Backed Facts to Know (hubspot.com)

Why do companies outsource customer services? # 1: Cost Savings

Is it cheaper to outsource customer services? One of the most compelling reasons agile companies outsource their customer services is the potential for significant cost savings, as outsourcing allows your business to tap into a global pool of skilled professionals without the associated costs of traditional teams.

Running an in-house customer service team involves a multitude of processes and expenses, from salaries and benefits to infrastructure and technology.

Connecting to curated, value-packed outsourced solutions drastically reduces operational costs without sacrificing service quality or resolution speed.

Labor costs for staff hired through Sourcefit normally run 50-70% less than equivalent staff in local markets.

To double down on your potential cost savings, experienced outsourcing service providers ensure their staffing solutions infrastructure includes countries with lower labor costs, and access to a pool of highly qualified individuals within those countries.

This juxtaposition of priorities – expense vs talent – enables bottom-line-focused businesses to quickly and easily find affordable professionals with the skill sets and industry experience to add immediate, tangible value.

Furthermore, outsourcing providers typically invest in cutting-edge technology and infrastructure, reducing the need for businesses to invest in customer service tools, platforms and personnel.

Moreover, scalability becomes easier when outsourcing, as businesses can flexibly adjust their service levels without the burden and cost of up-skilling and recruiting or downsizing and retrenching their internal team.

Sourcefit Says: businesses outsource customer services as a strategic, cost-saving solution to save on operational expenses and/or connect to flexible scalability.

Why do companies outsource customer services? # 2: Access to specialized, global talent pool

“Customer care leaders are facing a perfect storm of challenges: call volumes are up, employees are leaving and harder to replace, and digital solutions aren’t yet delivering on their full promise”. Mckinsey & Co. Report: The state of customer care in 2022.

Whether you acknowledge it or not – your customer service solutions are, essentially, the face of your business.

Executing a customer care plan efficiently requires the right team, armed with a deep understanding of customer-centric best-practices, effective communication skills and the ability to navigate complex customer interactions with a positive, company-first attitude.

Unfortunately, despite the key role customer care plays in all businesses value-chain, business leaders must contend with the dire state of the local talent landscape.

• 45% of companies struggling to find appropriate talent
• 38% improving service levels as the priority for contact centers

With salaries on the rise and fewer qualified professionals available, finding the right individuals for your team is only going to get harder.

Forward-thinking companies seeking real-world customer service solutions have recognized the value of reliable, reputable, and cost-effective outsourcing services, and the access they offer to task or job-focused, specialized talent.

Global Talent Pool: Outsourcing transcends geographical and cultural boundaries, allowing companies to leverage diverse skill sets, language proficiencies, and cultural awareness to cater to customers’ needs more effectively, or scale their offerings more efficiently.

Training and Development:  Outsourcing providers determined to help both their partners and their talent succeed, invest heavily in training and development programs for their employees. This ensures that their customer service professionals are well-prepared to handle a wide range of customer inquiries and issues.

Sourcefit Says: Customer service outsourcing providers offer hard to find expertise at a fraction of the local cost.

Why do companies outsource customer services? # 3. Scalability and flexibility

Businesses often face fluctuations in customer service demands. During peak seasons or promotional events, for example, the volume of customer inquiries can skyrocket, straining in-house teams and leading to leaked value or sub-standard customer care.

On the flip side, maintaining a large team during periods of low demand can be a financial burden.

Outsourcing offers a solution – scalability and flexibility.

With outsourcing, you have the flexibility to scale your customer service operations up or down as needed. When demand spikes, additional resources can be quickly deployed to handle the increased workload. Conversely, during quieter times, you can scale back without the hassle of layoffs or workforce adjustments.

Further, managing staffing fluctuations in-house can be logistically complicated and expensive. By outsourcing, you sidestep these challenges, ensuring that your customer service operation remains agile, efficient and cost effective at all times.

Sourcefit Says: Outsourced customer service solutions allow your business to be agile, reacting to market forces and opportunities in real-time, without worrying about potential staffing concerns or limitations.

Why do companies outsource customer services? # 4. Enhanced focus on core competencies

Is your customer service team’s precious time consumed by administrative tasks? Do you often find your team caught up in non-core activities? Is your business overwhelmed with mundane operational functions?

For businesses, particularly those in highly specialized industries, focusing on core competencies, and their unique value proposition, is key.

Outsourcing customer service solutions allow you to offload tasks that while crucial, may not directly contribute to your revenue, but still demand a certain level of ‘know-how’.

By entrusting lower-priority or labor-intensive tasks to experienced professionals, your team can concentrate on excelling across your company’s core strengths, without wasting effort and invaluable time on non-essential responsibilities or tasks that are better handled by qualified customer service experts.

Moreover, partnering with reputable outsourced professionals guarantees swift turnaround times and precision in your customer service operations.

Sourcefit Says: By outsourcing customer services, you free up valuable time and resources, enabling your in-house team to focus on growing your business.

Why do companies outsource customer services? # 5: improved customer experience

Ultimately, the effectiveness of your customer service directly impacts the customer experience. Outsourcing can lead to a significant enhancement of this crucial aspect of your business.

24/7 availability: Outsourcing providers offer round-the-clock customer service support. This ensures that your customers can reach out for assistance at any time, offering them the access and convenience they demand.

Multilingual support: In a globalized world, multilingual support is increasingly important. Outsourcing allows you to provide customer service in multiple languages, catering to a diverse customer base. This flexibility can open new markets and opportunities for growth.

Data-driven improvement: Outsourcing partners often employ data analytics and customer feedback mechanisms to continually improve service quality. This data-driven approach can identify areas for improvement and helps to build sustainable, long-term client and customer relationships.

Ready to grow your business and delight your customers?

In the ever-evolving landscape of best-business practices, high-end customer service remains non-negotiable for customers seeking quality solutions, and businesses seeking growth.

From substantial cost savings and access to specialized talent, to scalability and enhanced focus on core competencies, outsourced customer services can connect your business to new opportunities and competencies – all while delighting your clients and building sustainable relationships.

Connect to curated, world-class, outsourced customer service solutions today and unlock your business’s true potential.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article.

We invite you to follow us on social media and to visit our website to learn more about Sourcefit – your outsourcing partner.

About Us

Sourcefit – your preferred accounting service provider –  is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth ChampionHR Asia Awards, among others.

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