Outsourcing customer service means contracting your customer service operations to a business process outsourcing (BPO) company.

It has been a practice of companies of all shapes and sizes, from challenger brands to Fortune 500 leaders, for several years now.

There is no shortage of reasons to outsource, but possibly one of the most popular benefits is the cost reduction that comes along with it. But how can outsourcing customer service reduce costs? We’ve narrowed it down to 4 key ways in which you can cut expenses through outsourcing.

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1. Effective Mix of People, Process and Technology

Creating an in-house customer service center involves costs covering everything from office spaces to training, management, and technology, among many others. An outsourcing vendor, having all those aspects covered from the get-go, essentially lowers those costs, while also offering specialized teams of highly-skilled professionals, and industry-leading techniques and processes.

From hiring the right people in key offshore locations to organizing focused training sessions, an outsourcing provider can give you access to high-quality teams at a much lower cost. In other words, you won’t have to finance the learning curve that comes with hiring in-house customer service teams.

Moreover, outsourcing companies come with years of proven experience in high-touch customer service, which will add value to your brand and increase customer loyalty in the long run.

What does this mean for you?

Accessing the knowledge and expertise of an outsourcing vendor means that your customers will receive high-quality support faster and at a lower cost to you. And if you choose to partner with a vendor who offers 24/7 omnichannel support, you’ll also improve customer experience.

2. Increased focus on core business

Outsourcing your customer service lets you focus your best people and resources towards growing your business. Companies like Apple, Google, Uber, and other technology brands choose to outsource their customer service operations because it helps them achieve a global reach and, more importantly, focus on their core business and industry innovation. Next to strong cash-flows, their outsourced customer service teams have helped these companies grow and build brand advocates among their consumers.

What does this mean for you?

The right vendor will approach your outsourcing partnership with a collaborative mind-set, through which they will work with you on helping your company grow and achieve global success.

3. Innovation

We’ve talked a lot about automation as being an innovative step forward in customer service and outsourcing in general, for good reason. By automating customer insights (Net Promoter Score, Customer Effort Score, and First Call Resolution), you can lower any expenses that come with manual data collection, and increase accuracy. Automation also drives improvement of self-service portals, meaning that the volume of contacts is also lowered, while Average Handling Time is improved.

What does this mean for you?

While automation of certain processes translates to fewer agents needed to perform tedious time-consuming tasks, it also means that those agents can now devote their time to quality assurance and other high-value tasks. And since you can now get critical actionable insights from customers in close to real-time, you can have a clear view of the impact product changes have on your consumers, adapting and applying quick-fixes on-the-go.

In addition, it has increased end customer loyalty as critical insights from customers were translated into actions in a matter of hours compared to weeks and months in the traditional Customer Engagement models.

4. Scale to new markets

Growing your business to a new market can be a daunting task, especially since growth also means a higher order volume and contacts to your service and support teams. However, alongside an outsourcing provider who has the flexibility to adapt and keep up with your business, this transition will be smooth sailing.

What does this mean for you?

In short, it means you would have one less thing to worry about as you scale your business to new markets, whether you’re doing so locally, or globally. If you choose to partner with a global outsourced customer service vendor, the language or culture barrier between your business and your new clients will be non-existent.

Whether you’re looking to focus on your company’s core business or deliver quality services for your customers worldwide, outsourcing your customer service will help you achieve success and reduce your expenses.

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