When to use customer service outsourcing

There is no magic guideline as to when a business should choose customer service outsourcing. Instead, there are a number of situations when it may be right for your business, most of which revolve around resource planning.

• Significant growth - A new product launch or other major event can bring a huge volume of customer service calls to even a small business. Outsourcing customer service operations can eliminate the hassles of trying to ramp up dozens of new employees or investing in major equipment upgrades.
• Save money - When businesses reach call volumes that demand a significant capital investment, like new business phone systems, customer relationship management (CRM) software, dedicated call center space, or many new employees, it can be an easy choice to outsource. Call center service providers are able to keep their costs much lower by spreading the cost of employees and technology over many customers.
• Testing and learning - Smaller companies with little experience may want to start with outsourced customer service. When they have learned what it takes to run a call center and built up enough capital, they can bring the operation in house. Larger companies interested in testing new technologies or programs may find it easier and cheaper to use a customer service call center for testing than to retrain in-house employees.
• Variable volume - Call volumes that are relatively constant or those that grow at a predictable pace are relatively easy to plan for and budget. Businesses that see significant seasonality or unpredictable changes in volume can really benefit from the extra capacity of an outsourced customer service call center. This can include spot overflow, where the service provider is used to cover sudden surges in phone calls, or seasonal assistance.
• Business model shifts - The decision to outsource customer service can be triggered by a major decision, such as making the leap to 24/7 tech support. Switching to a two- or three-shift operation can be a huge problem - or as easy as going to a outsourced service provider. Another trigger can be the need to offer support in multiple languages.

Customer service outsourcing works best for fairly straightforward transactions and support. Products that have complex sales cycles and customer support lines that require in-depth troubleshooting are not as well suited to outsourcing.