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Grow Your Business Technology

The Pros and Cons of Outsourcing Your Customer Service to an Offshore Call Center

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Many businesses outsource their customer service to a call center to save time and free up staff to focus on tasks other than managing the phone lines. Call center services offer trained agents who handle your incoming calls based on a script or guidelines that you create for them. Call centers often engage in other services as well, including order management, complaints, technical support and outbound marketing campaigns.

To cut costs, some businesses look abroad for a call center service provider. While overseas call centers are typically less expensive than their domestic counterparts, there are some major considerations a business owner should keep in mind before choosing to partner with an international contact center.

Editor's note: If you're looking for the call center that's right for you, use the questionnaire below to receive information from a variety of vendors for free.

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It's no secret to many consumers that companies often outsource their customer service management to overseas call centers. India and the Philippines are the most prominent countries where offshore call centers are located. Overseas call centers typically offer lower rates, because the labor costs in these countries are much lower than in the U.S. However, it's important that companies not lose sight of what's important if they are considering moving their call center operations overseas.

Bryce Maddock, CEO of TaskUs, a California-based outsourced customer support provider with four offices in the Philippines, warned that costs aren't the only factor to consider. Maddock said that businesses also need to make sure the provider they choose won't compromise their brand and, most importantly, the customer experience.

"The most common mistake companies make when choosing a call center is focusing exclusively on price," Maddock said. "Service, reliability and cultural fit should never be discounted. Choose the call center that fits your brand and company culture, not just your price point."

For a long time, this has been the major point of contention between domestic and offshore call centers. Domestic contact centers claim native English speakers as agents and avoid the cultural barriers associated with offshore call centers. Domestic contact centers also tend to maintain a technologically superior infrastructure compared to overseas call centers. However, a more recent phenomenon has given rise to yet another kind of contact center: the nearshore call center. [Are you looking for the call center that's right for your business? Check out our reviews and best picks.]

Nearshore call centers are designed to blend the quality of service found in domestic call centers with the cost-effectiveness of offshore call centers. These contact centers are typically located in Central America or the Caribbean and include significant numbers of bilingual agents, as well as native English speakers. Nearshore call centers also tend to minimize cultural barriers because there is more travel back and forth between nearshore countries compared to truly overseas call centers.

Whether you select a domestic, nearshore or offshore customer service management partner, it's important to consider a wide range of factors. While costs are key, there is much more that goes into the decision to outsource your customer service. After all, you're trusting your partner with your brand image and your customers' satisfaction, two of your most valuable assets.

Naturally with an overseas call center, your customers are likely to encounter a language barrier at least some of the time. Not only is this frustrating for customers (many of whom are already calling about a problem,) it can reflect negatively on your brand.

Consumers often assume that outsourcing call center operations to an offshore service provider indicates an unwillingness to spend money on domestic customer service representatives. If you're going to partner with an offshore call center, test out their service first.

Even when language barriers aren't a problem, though, cultural differences can get in the way of customer engagement.

When outsourcing your customer service operations to an offshore call center, consider where the disconnects between agents and your customers might be found. In some cases, social conventions might clash; where an agent believes they are being polite, a customer might perceive them as rude. Where a customer asks a question about a product or service the agent has little direct experience with, the agent might not have a suitable answer.

Find out how customizable scripting options and guidelines are for agents, and how sophisticated their knowledge of your company will be before outsourcing your call center operations.

The underlying technology supporting call center operations is a key consideration when choosing a call center, especially one that is located abroad. Call centers should have redundant systems in place in case of a natural disaster or trouble with the local infrastructure. Otherwise, your customer service representatives could go offline leaving callers unanswered.

Customers expect brands to be responsive and helpful, and aren't typically sympathetic to gaps in service, especially when those gaps originate at an offshore call center.

Moreover, it's important to understand what level of security is being applied to the communications data moving through the call center you choose. This is especially true for businesses that operate in sensitive industries that might deal with privileged data, such as healthcare companies or law firms. Both software security and physical security at the facility itself are important considerations you should fully understand before making your decision.

The most important aspect of outsourcing your customer service, the true bottom line, is how well it supports your customers' experiences.

If a call center service offers you the lowest rate but agitates customers and harms your brand, the return on investment is not going to be worthwhile.

The best thing to do when choosing whether to outsource your customer service to an offshore call center, domestic call center or keep it in-house, is to consider your customers' needs and wants.

Put yourself in a customer's shoes and compare their perspective to what you know about each call center service you've investigated. If you're not convinced that the call center will leave your customers satisfied, it's too big of a gamble.

Before finalizing your decision, look at the roster of companies the call center works with. Doing so will help you identify if the call center is a good fit for your business.

If the call center works with mostly large-scale corporate companies and you're a newly funded startup, that particular provider is likely not a good fit.

Examining the call center's clients can help you get a better understanding of what its offerings are and what companies it best suits. Ask providers who their top clients are, if they work with any of your competitors and if you'll be one of their largest or smallest clients.

Not sure where to start looking for call center providers? Check out Business News Daily's best picks page here.

The main point of customer service departments is to ensure your customers are taken care of and satisfied. A satisfied customer is a return buyer and will recommend you to friends and family. An unsatisfied customer will likely never return, oftentimes without a complaint or explanation.

While it can be tempting to save every last dime, cutting costs at the expense of customer experience is never wise. Instead, balance costs with outsourcing your customer service to a call center that will represent your brand the way your own staff would.

Offshoring can be an incredibly effective way to achieve that balance, but only if you do your due diligence and find the right partner. Otherwise, you're better off using a more expensive domestic call center service or just keeping your customer service department in-house.

Anna Attkisson also contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.

Adam C. Uzialko

Adam C. Uzialko, a New Jersey native, graduated from Rutgers University in 2014 with a degree in political science and journalism and media studies. He reviews healthcare information technology, call centers, document management software and employee monitoring software. In addition to his full-time position at Business News Daily and Business.com, Adam freelances for several outlets. An indispensable ally of the feline race, Adam is owned by four lovely cats.