Why Do Companies Outsource Customer Service?

Customer service is outsourced to save money and allow companies to continue with core duties such as research and development to improve the service the company provides.

Outsourcing occurs when outsourcing companies provides services that could be or are usually performed in-house for another company. Customer service is sometimes outsourced. When customers contact customer service, they are not always speaking to a company employee. The company may have outsourced the work to save money or increase customer base.

Hiring

Sourcing and selecting employees for customer service can be a long, arduous process. Outsourcing companies that specialize in customer service have the employee base with the knowledge and skills to provide proper customer services in your desired field.

Administrative costs

The costs to maintain employee benefit plans, conduct performance appraisals and issue payroll services can be prohibitive. Therefore, a company will outsource customer service to avoid the human resources costs needed to maintain an employee base.  This also relieves companies from the tedious task of having to make redundant an underperforming employee.  They can speak to the outsourcing company that will provide a suitable replacement.

Warning

Companies must use caution when using outsourcing companies for customer service activities. Ensure that the outsourcing company uses applicable security guidelines when handling customers' financial information.  Along with this also companies need to ensure there not going to get tied down for longer then they need.  Most customer service roles require long term contracts but if your not satisfied with the companies employee find an outsourcing company with short term rolling contracts.