Outsourcing customer service has become an increasingly popular strategy for businesses of all sizes. By outsourcing customer service offshore, companies can benefit from lower labour costs, access to a wider pool of skilled workers, and around-the-clock coverage. However, outsourcing customer service is not without its challenges, and it's important to approach the process with a clear plan in place.
This guide will provide a comprehensive blueprint for outsourcing your customer service offshore, from identifying the best outsourcing destinations, to establishing clear goals and expectations, to managing and monitoring the performance of your outsourced customer service team. Whether you're a small business owner just starting to explore the world of outsourcing, or a seasoned professional looking to optimise your existing customer service outsourcing strategy, this guide will provide the information and tools you need to succeed.
Outsourcing customer service refers to the practice of hiring a third-party company or individual to handle customer support inquiries, complaints or back-office support. This can be done either domestically or internationally, with the latter often referred to as offshore outsourcing. Companies may choose to outsource customer service for a variety of reasons, such as to reduce costs or access a larger pool of qualified customer service representatives.
There are several potential benefits to outsourcing your customer service operation, including:
It is also important to understand the risks of outsourcing your CS function. The main considerations of in-house support can be summarised by:
Deciding whether outsourcing customer service is right for your business will depend on a variety of factors, including your industry, the nature of your products or services, and the size and resources of your company. Careful consideration of the potential benefits and risks, as well as a clear understanding of your business needs and goals, can help you determine if outsourcing is a viable option for your company.
Suggested read: Click here to take a look at our comprehensive view on Outsourcing your Customer Services, vs in-house.
When it comes to offshore outsourcing, one of the most important decisions a company will make alongside choosing a partner, is choosing the right location. There are a number of factors to consider, including skill set, cost, language skills, cultural fit, and infrastructure. Some popular locations for offshore customer service include the Philippines, India, and Thailand.
The Philippines is known for its cost-effective labour, strong English skills, and cultural similarity to Western countries. India also has a large pool of skilled workers and a strong service industry, but there may be more language and cultural barriers to overcome. Thailand is another popular location due to its low cost of labour and well-developed infrastructure, but there may be concerns about language and cultural differences.
Ultimately, the best offshore location for a company will depend on its specific needs and goals. It's important to carefully research and compare different locations to ensure a good fit for the company and its customers. We’ve included a few metrics below, we encourage you to consider before settling for a specific location.
If you’re outsourcing your Customer Service labour offshore, it’s important to make sure you’re working in a country where businesses and its citizens abide by the law, have stable infrastructure and allow its people a high level of freedom and civil liberties. Before committing to any specific country, or letting potential partners tell you where’s best, make sure to use the following resources to give you a true understanding of these countries.
There are many great outsourcing locations, and it may differ depending on who you ask, and on your needs, i.e. language capabilities, time-zones, cost, etc. Although this list is on the current most popular, our favourite option isn’t on here, it’s a bit of a trade secret and definitely a hidden gem in terms of outsourcing. However, we’re happy to spill the beans and tell you more, click here to book a call with one of our experts.
Not the most common solution for Customer Service specifically, but Poland is a great option if you’re looking for more technical support, IT help desks are a great example as Poland complies with strict EU standards such as GDPR for IP protection and data security. The average salary at the time of writing is around £1,216 or $1475, further increasing the benefits Poland can provide your business.
Before choosing an outsourcing partner for customer service, it's essential to understand your business's specific needs. Consider the type of support required (such as inbound calls, live chat, email, technical support, back office, admin etc.), the volume and complexity of customer inquiries, and the preferred channels of communication. Assess your current customer satisfaction levels and identify areas for improvement. Also, consider your target audience's language preferences. By understanding these factors, you can select a partner that can effectively meet your business's needs and improve the customer experience.
Once you’ve defined your customer service needs, you need to find a partner that can deliver them. Research companies that specialise in providing excellent customer service support and have a successful track record in your industry. Start by doing an online search and asking for recommendations from other businesses where possible. Thoroughly research each company by looking for reviews and testimonials, and reach out to learn more about their services, pricing, technical abilities, do they offer any extras such as agent support software, or services to improve your public image on review sites etc, and finally make sure to understand contract terms. By researching potential partners, you can make an informed decision on the best fit for your business.
The cost to outsource your Customer Service department can vary drastically, mostly depending on location, but many partners will have additional add-ons such as software, onboarding, shrinkage, additional languages, out of hours cover, etc. Some offer an all in cost, per hour or month, and others will charge depending on contacts worked.
We’ll use our solution Resolvable, to give you an understanding of the pricing structures you’ll find in the market.
1) Dedicated Teams: which work well for businesses who know how many agents they need, and want full control over their workload, e.g. customer contacts, back office tasks, reporting etc.
This solution offers an all inclusive hourly rate of £8.45 per hour, this includes your dedicated agent/s full support structure, hardware, software, shrinkage and no additional charges for out of hour support.
2) Shared Teams: work well for businesses who don’t have a constant amount of customer service work, but still want to be available to over a long period of time
This solution: is available from £299 a month, or £0.80 per contact. View our pricing page to see more!
We’ve also built a cost comparison tool, that allows you to calculate your internal costs vs the costs of outsourcing with Resolvable. Click here to take a look
If you’d like to review our more detailed guide on Chapter 3: Finding the right outsourcing partner, check out our comprehensive article here; How to Choose the Right Customer Service Outsourcing Partner
Developing a training program for your offshore team is an important aspect of managing a successful offshore team. A comprehensive training program should cover all the necessary skills and knowledge that the team members need to perform their job tasks effectively. It should also include information about the company's policies and procedures, as well as any industry-specific regulations that the team needs to be aware of. It is important to regularly review and update the training program to ensure that it remains relevant and effective. Additionally, it is important to provide ongoing training and support to team members to help them continually improve and develop their skills.
Make sure to use a knowledge base which can be updated live, and prompt notifications to agents on new process changes. Your outsource partner should have their own L&D (Learning and Development) team, so work with them to agree on a collaborative way to update training material, and ensure ongoing development.
Managing and communicating with your offshore team effectively is crucial for the success of the team and the overall project. Here are some tips for managing and communicating with your offshore team:
By following these tips, you can effectively manage and communicate with your offshore team and ensure the success of your project.
Quality assurance (QA) in customer service refers to the evaluation of the quality of interactions that customers have with a company. This includes assessing the standard of interactions through various channels such as phone calls, emails, and in-person encounters. QA in customer service aims to evaluate the effectiveness and efficiency of the processes involved, as well as the competence, expertise, and professionalism of customer service representatives. It involves verifying that customer service meets certain standards and expectations set by the company to ensure customer satisfaction.
Setting quality standards and metrics is a crucial step in ensuring that your offshore customer service team provides high-quality service to your customers. Quality standards provide a clear set of expectations for how customer service should be conducted, and metrics allow you to measure performance against these expectations.
When setting quality standards, it's important to involve your partner in this process, this may be alongside their L&D team, or maybe you want to take full control, and set these standards alongside the frontline agents. This will help ensure that the standards are realistic and achievable, and that your team understands the importance of meeting these standards. Additionally, involving your team in the process can help to build buy-in and ownership for the standards.
When defining the quality standards, you should consider the following factors:
Once you have established your quality standards, you should set metrics to measure performance against these standards. Metrics should be specific, measurable, and achievable, and should align with the overall goals of your customer service team.
Examples of metrics that you may use to measure performance include:
It's important to regularly monitor and analyse the metrics and use the insights to improve the performance of the team and the customer service process. Also, have a process of feedback and training in place, especially when metrics are not meeting the standards.
Similar to the above, you can fully leave this to your partner, or be involved. We at Resolvable have some brands which prefer to leave both the conducting and feedback of our agents, to us, receiving a weekly report and breakdown instead. Other brands like to be involved.
The results of the QA process need to be gathered and added to other metrics, such as more performance based scores like Contacts per Hour (CPH), Quiz results, etc. and be reviewed with the agents. Ideally, this is during a weekly or bi-weekly one-to-one, It’s important to be clear on the expectations, how they’re performing and how their results are changing overtime and ensuring adequate coaching is available for those under performing.
Suggested Read: The Importance of Quality Assurance: A Look at Why It Matters
Another great benefit of partnering with an outsourcing professional, is benefitting from the most modern technical solutions.
The integration of technology in the field of customer service has greatly impacted the way companies interact with their customers and colleagues. Advancements in technology have led to the creation of various tools such as chatbots, virtual assistants, self-service portals, social media platforms, and tools to collaborate with colleagues, such as Facebook's Workplace, or Microsoft's Teams, providing companies with multiple options to enhance the customer service experience.
We’ll examine the impact of technology on customer service, highlighting its benefits for both businesses and customers. We will also explore the different technologies used in this field, the significance of selecting the appropriate technology for a company and predictions on the future of technology in customer service.
Technology has brought numerous benefits to the Customer Service industry. From, Improved efficiency, greater convenience, enhanced personalisation, increased scalability and of course, reduced costs. Overall, technology has the potential to significantly improve the customer service experience, both for businesses and their customers. By leveraging the right technology, businesses can provide faster, more convenient, and more personalised service, all while reducing costs and improving efficiency.
There are numerous types of technology used in Customer Services, including:
SUGGESTED READ: The Role of Technology in Customer Service Outsourcing
Time zone differences can often be a worry for businesses when considering outsourcing, but can actually be overcome fairly easily. Resolvable use local account managers as the first line of defence who works the hours you work. You also have access to Supervisors and Team Leaders at every hour of the day.
Most outsourcers nowadays also provide 24/7 hour support, to both their clients and their customers, but make sure to include these questions and any other concerns you have.
The second most common concern we’ve heard is regarding language barriers when using an offshore team. At Resolvable, you can be as close or as distant as you’d like during the recruitment process, however, all our staff go through a comprehensive spoken and written English assessment during the interview process.
Outsourcing customer service operations can provide several benefits such as access to expertise and cost-savings, improved customer satisfaction, better flexibility and scalability, and access to modern technologies. Outsourcing can also lower costs while maintaining quality and provide a dedicated team of professionals familiar with best practices and streamlined processes. Additionally, outsourcing certain aspects of customer service, such as specific language coverage or back office tasks can be a good option rather than outsourcing the entire operation. However, it's also important to consider the risks of outsourcing, such as potential impact on brand awareness, team collaboration and difficulties to implement policy changes.
The customer service industry is constantly evolving, and outsourcing is no exception. In recent years, there has been a shift towards more automated and self-service options for customer support, as well as a focus on providing personalised and seamless experiences for customers. A great outsourcing partner can suggest and help implement such technologies, as well as provide the human labour that is very well still needed in the modern age. As technology continues to advance, we can expect to see these trends continue to shape the future of customer service outsourcing.
Another trend in customer service outsourcing is the shift towards more personalised and seamless customer experiences. With access to more data and advanced technologies, companies are now able to provide customised support based on individual customer needs and preferences. For example, companies are using customer data to predict customer behaviour and proactively address potential issues. Additionally, companies are also beginning to use technologies such as omnichannel support, that allows customers to switch between different communication channels (phone, email, chat, etc) seamlessly, improving customer satisfaction and loyalty.
Furthermore, more and more companies are exploring outsourcing their customer service to offshore locations as a way to offer 24/7 support for customers, increase efficiency and cut costs as well as accessing a pool of experts, keeping up with modern trends.. This is not only true for companies based in developed countries but also from smaller and developing markets.
As customer service continues to evolve, companies that are able to adapt and take advantage of these trends will be better positioned to provide excellent support to their customers while also improving their bottom line. Companies that embrace automation, personalization, and other advanced technologies will be able to provide better experiences for their customers and gain a competitive advantage in the marketplace.