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What you'll learn from this article:
- What are the outsourcing models
- What are benefits of outsourcing customer support
- How to choose the right support outsourcing partner
- What are top customer service outsourcing companies
Key findings
What is customer support outsourcing?
I'ts a business practice where companies delegate customer service operations (e.g., calls, emails, chat) to a third-party provider to improve efficiency, reduce costs, and enhance customer experience.
What is a Business Process Outsourcer (BPO)?
It's a specialized company that manages non-core business functions (like customer support) on behalf of other businesses, often offering services across multiple channels and languages.
Running a small or mid-sized business today is no small feat. You're juggling multiple roles: sales, operations, strategy, and then there's customer support. But what happens when your team is overwhelmed? Calls go unanswered, chats are missed, and resources that could fuel growth are stretched thin. Sound familiar?
You're not alone. In fact, 24% of small businesses outsource customer support to boost efficiency and reduce costs. Outsourcing isn't just a cost-saving measure. It's a strategic move to enhance customer experience, scale operations, and free up your team to focus on their core strengths.
Here, we'll explore how outsourcing customer support can improve your business. We'll delve into the benefits, how to select the right outsourcing partner, and introduce you to some top companies leading the way. The insights will help you decide if outsourcing is the right fit for your business and how to make it work smoothly. Let's get started!
What is customer support outsourcing?
Customer support outsourcing involves partnering with a third-party provider, known as a Business Process Outsourcer (BPO), to handle your customer service operations. These providers manage various customer interactions, such as phone calls, emails, live chats, and social media inquiries, on your behalf. By doing so, they help you deliver consistent, high-quality support without the overhead of managing an in-house team.
BPO vs. temporary staffing or consulting
It's important to distinguish between outsourcing and other staffing solutions:
- Temporary staffing: Involves hiring short-term employees to fill immediate gaps, typically without long-term strategic planning.
- Consulting: Provides expert advice and recommendations, often without direct involvement in day-to-day.
In contrast, outsourcing is a strategic partnership where the BPO provider actively manages and executes your customer support functions.
Exploring outsourcing models
Choosing the right outsourcing model depends on your business needs, budget, and customer expectations. Here's a breakdown:
1. Onshore outsourcing
- Pros: Cultural affinity, shared language, and easier collaboration due to geographic proximity.
- Cons: Higher operational costs compared to other models.
2. Nearshore outsourcing
- Pros: Closer time zones, often similar cultural backgrounds, and cost savings over onshore options.
- Cons: Potential for minor language nuances or cultural differences.
3. Offshore outsourcing
- Pros: Significant cost savings, ability to provide 24/7 support, and access to a large talent pool.
- Cons: Challenges with cultural alignment, language barriers, and time zone differences.
Selecting the appropriate model requires assessing your specific business requirements, customer demographics, and budget constraints.
Services that can be outsourced
Outsourcing isn't limited to just answering calls. A wide range of customer support services can be managed by BPO providers:
- Inbound/Outbound calls: Handling incoming inquiries and making outbound calls for follow-ups or sales.
- Email support: Managing customer queries and responses via email.
- Live chat support: Engaging with customers in real-time through chat platforms
- Social media monitoring and engagement: Monitoring brand mentions and engaging with customers on social platforms.
- Technical support (tier 1, tier 2): Providing assistance for technical issues, escalating when necessary.
- Help desk and IT support: Offering support for IT-related issues and troubleshooting.
- Back-office tasks: Managing administrative tasks, such as data entry related to support.
- Multilingual support: Providing support in multiple languages to cater to a diverse customer base.
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Benefits of outsourcing customer support
Customer service outsourcing isn't just about cutting costs, but improving your business operations. Here's how:
1. Cost savings and efficiency
Outsourcing customer support can significantly reduce operational expenses. By eliminating the need for in-house hiring, training, benefits, and infrastructure, businesses can save up to 30-50% on labor costs. For instance, in-house support may cost $25–45 per hour per agent, whereas outsourced support can cost as little as $12–25 per hour.
2. Scalability and flexibility
Outsourcing customer service allows businesses to quickly adjust support capacity during peak seasons or periods of rapid growth. Providers can handle unexpected volume spikes without the need for long-term commitments, ensuring that support levels align with demand. They also enable businesses to utilize specialized skills and technical support without incurring significant upfront investment, thereby improving service quality and efficiency.
3. Focus on core business activities
By freeing up internal resources and management time, outsourcing enables companies to concentrate on product development, sales, and strategy. This focus on core activities can drive innovation and growth, as day-to-day support operations do not bog down teams.
4. Improved customer satisfaction
Faster response times and resolution rates can be achieved when SLAs and KPIs are clearly defined upfront. Consistent support quality, ensured through dedicated teams, ensures that customer expectations are met, leading to higher satisfaction and retention.
How to choose your customer support outsourcing partner
Selecting the right customer service outsourcing services is a pivotal decision that can significantly impact your business operations and customer satisfaction.
Here's a step-by-step guide to help you navigate this process effectively:
Step 1: Define your needs
Begin by clearly outlining your requirements:
- Channels: Which support channels do you need (e.g., phone, email, live chat, social media)?
- Hours: What are your desired hours of operation (e.g., 24/7, business hours)?
- Volume: Estimate the volume of interactions (e.g., the number of calls or emails per day).
- Technical expertise: Identify any specialized knowledge or skills required.
- Budget: Determine your budget range for outsourcing.
Step 2: Research potential partners
Identify companies that align with your needs:
- Services offered: Ensure they provide the specific services you require.
- Industry focus: Look for experience in your industry or similar sectors.
- Reputation: Check reviews, testimonials, and case studies to gauge their reliability.
Step 3: Due diligence
Conduct thorough evaluations:
- Request proposals (RFPs): Solicit detailed proposals to understand their offerings and pricing.
- Check references: Speak with current or past clients to assess satisfaction levels.
- Review case studies: Examine their experience with businesses of similar size and scope.
Step 4: Assess technology and infrastructure
Evaluate their technological capabilities:
- CRM compatibility: Ensure they can integrate with your existing Customer Relationship Management (CRM) system.
- Reporting capabilities: Verify the presence of robust reporting and analytics tools.
- Technical setup: Assess their infrastructure for scalability and reliability.
Step 5: Review security and compliance
Ensure they meet necessary standards:
- Data protection protocols: Verify compliance with regulations such as GDPR and HIPAA.
- Certifications: Check for relevant certifications that demonstrate a commitment to security.
Step 6: Evaluate cultural fit and training
Consider alignment with your brand:
- Onboarding and training: Understand their process for training agents on your brand and products.
- Cultural alignment: Assess whether their company culture aligns with yours to ensure smooth collaboration.
Step 7: Discuss pricing models
Understand their pricing structure:
- Cost per hour: Determine the hourly rate for services rendered.
- Cost per ticket: Inquire about pricing based on the number of tickets handled.
- Other models: Explore any alternative pricing models they may offer.
Step 8: Consider a pilot program
Test their services:
- Limited scope: Implement a pilot program to evaluate their performance on a smaller scale.
- Assessment: Use this period to assess their effectiveness and compatibility with your needs.
Systematically evaluate potential partners and determine if outsourcing aligns with your business needs.
Top customer service outsourcing companies
For customer support outsourcing services, it's crucial to partner with providers who not only offer cost-effective solutions but also align with your company's values, industry requirements, and technological needs. Below is a curated list of reputable outsourced customer support companies:
1. Simply Contact
Founded in 2013, Simply Contact is a European-based customer support outsourcing company renowned for its multilingual capabilities and cultural alignment with European markets. With over 100 projects successfully managed, they have honed their expertise in delivering custom support solutions.
Key strengths:
- Multilingual support: Proficient in 20+ languages, including English, Polish, Italian, German, and French, ensuring effective communication across diverse customer bases.
- Certifications: Holds ISO 27001, ISO 27701, PCI DSS, and HIPAA certifications, demonstrating a strong commitment to data security and privacy.
- Industry experience: Extensive experience in sectors such as fintech, travel, and eCommerce, providing specialized support tailored to industry-specific needs.
Ideal for:
Businesses seeking a European partner with a deep understanding of regional markets and a strong emphasis on data security.
2. SupportYourApp
Established in 2010, SupportYourApp is a global customer support outsourcing provider specializing in support-as-a-service solutions. With a presence in over 60 countries, they offer 24/7 multilingual support tailored to the needs of startups and growing enterprises.
Key strengths:
- Comprehensive services: Offers a wide range of services, including call center support, technical assistance, live chat, and help desk solutions.
- Scalability: Provides flexible support models that can scale with your business growth, ensuring consistent service quality.
- Client-centric approach: Known for its proactive customer service and commitment to client satisfaction.
Ideal for:
Startups and mid-sized companies looking for a flexible, scalable support solution that can adapt to their evolving needs.
3. Alorica
Alorica is a global leader in customer experience (CX) outsourcing, with a presence in over 150 countries. The company provides a comprehensive suite of services that spans the entire customer lifecycle.
Key strengths
- Global reach: Extensive network enabling 24/7 support across various time zones.
- Diverse service offerings: Provides services ranging from inbound and outbound customer care to technical support and digital CX solutions.
- Industry expertise: Serves a wide array of industries including telecommunications, healthcare, retail, and financial services.
Ideal for:
Large enterprises seeking a comprehensive, globally integrated customer support solution with a broad industry focus.
4. Foundever
Formerly known as Sitel Group, Foundever is a global customer experience management company headquartered in Miami, Florida. With over 170,000 associates worldwide, they deliver innovative customer experience (CX) solutions powered by AI and human expertise.
Key strengths
- AI-driven solutions: Integrates artificial intelligence to enhance customer interactions and operational efficiency.
- Multilingual support: Offers services in over 60 languages, catering to a diverse global clientele.
- Recognition: Consistently recognized as a leader in the CX outsourcing industry, earning accolades such as the Global Outsourcing 100® Company.
Ideal for:
Global brands seeking innovative, AI-enhanced customer support solutions with a strong emphasis on scalability and multilingual capabilities.
5. HiredSupport
HiredSupport is a customer service and business process outsourcing firm that has been operational since 2016. They specialize in providing comprehensive support solutions tailored to the needs of startups and eCommerce businesses.
Key strengths
- Specialized support: Focused on delivering high-quality customer service to tech startups, eCommerce platforms, and SaaS providers.
- 24/7 availability: Offers round-the-clock support to ensure continuous customer engagement.
- Cost-effective solutions: Offers outsourcing options that enable businesses to reduce overhead costs while maintaining high-quality service.
Ideal for:
Tech startups and eCommerce businesses looking for cost-effective customer support solutions that can operate around the clock.
6. Helpware
Helpware is a customer experience outsourcing company that builds customized teams for startups and modern enterprises. Founded in 2015, they have a global presence with offices in the United States, Ukraine, the Philippines, Germany, and Mexico.
Key strengths
- Tailored teams: Specializes in creating bespoke support teams that align with client-specific needs and company culture.
- Award-winning service: Recognized with multiple Stevie® Awards for excellence in customer service.
- Comprehensive offerings: Provides a full suite of services including call center support, technical assistance, content moderation, and back-office support.
Ideal For:
Startups and modern enterprises seeking customized, high-quality customer support solutions that integrate smoothly with their operations.
7. InfluX
InfluX is a customer support outsourcing company that offers on-demand support services tailored to the needs of startups and scale-ups. They offer flexible, month-to-month support solutions that cater to the evolving needs of growing businesses.
Key strengths
- Flexibility: Offers month-to-month contracts, providing businesses with the flexibility to scale support services as needed.
- Brand-aligned support: Focuses on delivering support that aligns with the client's brand voice and customer experience standards.
- Global coverage: Utilizes a follow-the-sun model to ensure continuous support across different time zones.
Ideal for:
Startups and scale-ups seeking flexible, brand-aligned customer support solutions that can adapt to their evolving needs.
8. Auxis
Auxis is a management consulting and outsourcing firm, specializing in business modernization and nearshore outsourcing solutions. They focus on helping companies achieve peak performance in their back-office operations, including customer support functions.
Key strengths:
- Nearshore outsourcing: Offers nearshore outsourcing services, primarily in Latin America, providing cost-effective solutions with minimal time zone differences.
- Customized solutions: Delivers tailored outsourcing solutions that align with clients' specific business goals and operational requirements.
- Comprehensive services: Provides a range of services including IT service desk support, order management, and customer care.
Ideal for:
Companies seeking cost-effective, customized outsourcing solutions with minimal time zone challenges, particularly in the Americas.
9. SkyCom
SkyCom is a call center and Business Process Outsourcing (BPO) company headquartered in Florida. They offer nearshore services across multiple industries, including customer support, IT support, and back-office services.
Key strengths
- Nearshore advantage: Operates in Latin America, providing cost-effective solutions with native English-speaking agents.
- Industry experience: Serves a diverse clientele across industries such as healthcare, finance, retail, and telecommunications.
- Scalable solutions: Offers flexible outsourcing models to accommodate businesses of various sizes and needs.
Ideal for:
Businesses seeking a nearshore outsourcing partner with a strong presence in Latin America and a diverse service offering.
10. Integra Global Solutions
Integra Global Solutions is a leading business process outsourcing and technology company founded in 2004. Headquartered in the United States, with branches in the United Kingdom and India, Integra provides a wide range of outsourcing services, including customer support, accounting, and software development.
Key strengths
- Psychology-based training: Employs a unique approach by training agents in customer psychology to enhance customer interactions.
- Multilingual support: Offers services in multiple languages, including Spanish, French, German, Italian, Russian, and Arabic.
- Custom solutions: Provides customized outsourcing solutions to meet the specific needs of clients across various industries.
Ideal for:
Companies seeking a versatile outsourcing partner with a focus on customer psychology and multilingual capabilities.
11. TELUS Digital
TELUS Digital, formerly known as TELUS International, is a Canadian technology company that provides a comprehensive suite of digital services, including customer experience (CX) solutions, IT services, and AI-driven automation.
With a global presence in over 31 countries and a workforce of more than 78,000 employees, TELUS Digital serves industries including technology, communications, media, financial services, travel, and healthcare.
Key strengths
- Omnichannel support: TELUS offers a wide range of support channels, including voice, email, chat, social media, text, web, and video, ensuring seamless customer interactions across platforms.
- AI-powered solutions: The company leverages artificial intelligence to enhance customer experiences, streamline operations, and provide data-driven insights.
- Industry expertise: TELUS has a proven track record in serving diverse industries, providing tailored solutions that meet specific business requirements.
Ideal For:
Businesses seeking a technologically advanced outsourcing partner with a strong emphasis on digital transformation and industry-specific expertise.
12. VXI
VXI Global Solutions is a business process outsourcing (BPO) provider specializing in customer service, technical support, and sales solutions. VXI operates in over 42 locations across North America, Asia, Europe, and the Caribbean, employing a diverse workforce of approximately 40,000 professionals.
Key strengths
- Comprehensive services: VXI offers a full spectrum of services, including customer experience management, sales support, technical assistance, and back-office operations.
- Global Reach: With a presence in multiple regions, VXI offers multilingual support, enabling it to cater to diverse customer bases.
- Community engagement: The company is committed to social responsibility, working directly with underserved communities to create training and job opportunities.
Ideal For:
Organizations looking for a versatile outsourcing partner with a strong commitment to community development and a broad range of service offerings.
These customer support outsourcing companies offer unique strengths to cater to diverse business needs. When selecting a partner, consider factors such as service models, industry expertise, technological capabilities, and cultural alignment to ensure a successful outsourcing partnership.
When should companies outsource customer service?
Deciding whether to outsource your customer service isn't a one-size-fits-all decision. It hinges on your company's stage, resources, and strategic goals.
If you're experiencing growing pains, facing resource constraints, or aiming to enhance efficiency, outsourcing customer service can be a strategic move. However, if maintaining a personal touch, having control over processes, or safeguarding sensitive data is paramount, it might be best to keep customer service in-house.
In such a case, tools like LiveChat play a pivotal role in enhancing customer engagement. LiveChat is a leading AI-powered customer service software that enables businesses to connect with customers in real-time through live chat, chatbots, and help desk solutions. It's a powerful tool for companies seeking to streamline their customer service operations and enhance customer satisfaction.
Remember, the key is aligning your customer service strategy with your business objectives and capabilities. Carefully evaluate your needs, and make an informed decision that supports both your customers and your bottom line.
FAQs
Is outsourcing only for large companies?
No, small and medium-sized businesses (SMBs) and startups can benefit significantly from outsourcing. It allows them to access skilled professionals, reduce operational costs, and focus on core business operations without the need for extensive in-house infrastructure.
How long does it take to set up an outsourced support team?
Setting up an outsourced support team typically takes between 4 and 8 weeks. This timeframe includes onboarding, training, and integration with your existing systems. Factors such as the complexity of services and the number of support channels can influence the setup duration.
What are the typical pricing models?
Outsourcing providers offer various pricing models:
- Per Hour: Charges based on the time agents spend assisting customers.
- Per Ticket: Fees are incurred for each customer inquiry or issue resolved.
- Per Agent: A fixed monthly rate for each dedicated agent assigned to your account.
- Per User: Pricing based on the number of users or devices supported.
The average cost of hiring customer service companies ranges from $25 to $49 per hour.
How can I ensure data security?
To ensure data security when outsourcing, implement stringent measures to prevent unauthorized access, disclosure, and data transfer outside of your organization. This includes ensuring that all data exchanges are secure and monitored.
Will I lose control over my customer experience?
Not necessarily. Maintaining control over your customer experience is achievable with clear communication and collaboration. Provide comprehensive training, set clear expectations, and conduct regular performance reviews to ensure that your outsourced team aligns with your brand values and consistently delivers high-quality service.
Can outsourced agents handle complex technical issues?
Yes, many outsourcing providers offer tiered support levels to address varying levels of complexity. For instance, Level 1 agents handle basic inquiries, while Level 2 and Level 3 agents manage more intricate technical issues. Assess your specific needs and select a provider with the appropriate expertise, and you can ensure that even complex challenges are effectively managed.
Summing up
If you're a small or medium-sized business or a startup, outsourcing customer support allows you to:
- Scale quickly without the overhead of hiring and training.
- Access specialized expertise, skills, and advanced technology that might otherwise be out of reach.
- Focus on your core business activities, leaving the customer service complexities to experts.
But here's the catch: not all outsourcing partners are equal. It's crucial to evaluate potential providers based on your specific needs, not just cost. Look for partners who understand your industry, align with your company culture, and can meet your performance expectations.
Approach this decision methodically, and elevate your customer support to improve customer satisfaction, ultimately driving business growth.
