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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.



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.

  • Employee Management

    To maintain employees, it is necessary to have managers and analysts. By outsourcing customer service, the company does not need to manage this employee base and can rely on the outsourcing company to analyze customer service trends, and hold employees accountable for adhering to policies and procedures.

    Decrease Overhead

    The costs to house a customer service center can be expensive, including rent and computers. When customer service is outsourced, the company does not have to bear these costs.  All costs are covered from the fee agreed between the business and the outsourcing companies on a monthly basis.  This includes work spaces and stations for the employees as well as any software required.


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. 

Pros of Using Outsourcing Companies for Data Entry...Read More

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