What is Call Center Outsourcing?

Call center outsourcing means hiring another company to handle customer calls for you. Instead of answering every call yourself, you let a professional team do it on your behalf.

As your business grows, more customers will call you for inquiries and support. Handling all these calls can take up a lot of time and may impact your core operations. This is where call center outsourcing comes in.

As per a recent study, businesses save around 15% on employee wages by outsourcing. This happens as they only pay for productive hours rather than full salaries and benefits for in-house staff.

Through call center outsourcing, you let a professional team handle both inbound and outbound calls for your business. This saves time, as you and your team can focus on running the business instead of managing customer calls. Also, most call centers have trained professionals who know how to handle customers professionally. This significantly increases customer experience (CX).

So, want to offer the best services to your customers? In this article, let’s understand what call center outsourcing is, its various types, and how it works. Also, to form a better opinion, we will check out its benefits and challenges.

What is Call Center Outsourcing?

Call center outsourcing means hiring another company to handle customer calls and messages for your business. Instead of answering calls and replying to customers yourself, you let experts do it for you.

Generally, a call center handles your:

• Incoming calls (customers asking questions or needing help)
• Outgoing calls (calling customers for feedback or sales)
• Emails and messages
• Live chats on your website
• Social media messages

Through call center outsourcing, you can ensure your customers get quick and professional responses. Also, it reduces costs compared to hiring and training your own team. 

What are the Various Types of Call Center Outsourcing?

There are three types of call center outsourcing (depending on where the call center is located):

1. Onshore Outsourcing (Within India)

• You hire a call center in India to handle customer calls.
• It is easier to manage since the company is in the same country.
• Cost is usually higher than outsourcing to another country but offers better control and quality.

For example: A Delhi-based business hires a call center in Bangalore for customer support.

2. Offshore Outsourcing (Another Country)

• You hire a call center in another country, like the Philippines or the UAE.
• This allows you to save costs because labour may be cheaper in some countries.
• You gain access to a large number of trained professionals.
• However, you face challenges like time zone differences and possible language barriers.

For example: An Indian e-commerce business outsourcing to a call center in the Philippines to manage international customer calls.

3. Nearshore Outsourcing (Nearby Countries)

• You hire a call center in a neighbouring country (like Bangladesh or Sri Lanka).
• It is more affordable than onshore outsourcing.
• There are fewer language and time zone issues compared to offshore outsourcing.

For example: A Mumbai-based company outsourcing to Sri Lanka to reduce costs.

How Does Call Center Outsourcing Work?

Generally, to hire a call center outsourcing firm, you need to follow these steps:

Step I: Contracting and Agreements (Making a Deal)

Before call center outsource, you need to decide what kind of customer support you need. 

For example:

• Will the call center handle only phone calls or also emails, WhatsApp, and social media messages?
• Do you need 24/7 customer support or only during business hours?
• Do you want agents who speak only English & Hindi or other regional languages too?

Once you decide, you select a call center company and sign a contract. This contract includes the following:

For example, a Mumbai-based online clothing store hires an outsourcing company to manage customer complaints. They sign a contract stating that calls must be answered within 20 seconds and 90% of issues must be resolved on the first call.

2. Technology and Tools (How Calls Are Managed)

Call centers use advanced technology. Using it, they make customer service faster. Some key tools they use include:

• CRM (Customer Relationship Management) Software: This stores customer details, previous complaints, and order history in one place. This allows agents to provide personalised service.
• AI Analytics: Artificial Intelligence (AI) analyses customer calls and messages. Such an analysis is made to find common complaints, measure customer satisfaction, and suggest improvements.
• Cloud-Based Platforms: This allows call center agents to work from anywhere. Using cloud platforms, they can provide support via multiple channels like phone, email, chat, and social media.

3. Performance Monitoring (To Ensure Good Service)

Once the call center outsourcing starts, you need to track performance to make sure customers are happy. Some important performance metrics are:

• Average Handling Time (AHT): 

• • • How long an agent takes to resolve a customer’s issue. 
    • Shorter time = better service.

• First Call Resolution (FCR): 

• • • The percentage of problems solved on the first call, without needing follow-ups.
    • Higher FCR = better efficiency.

• Customer Satisfaction Score (CSAT):

• • After a call, customers may receive a quick survey (e.g., “Press 1 if you’re happy, Press 2 if not”). 
  • This helps measure overall satisfaction.

Benefits of Call Center Outsourcing

Call center outsourcing offers several benefits to businesses:

1. Cost Efficiency

A recent research report released by Deloitte showed that about 59% of businesses outsource to reduce costs. It is true because due to outsourcing, you don’t need to spend on:

• Office space
• Equipment
• Hiring
• Training employees

Instead, the outsourced call center takes care of everything. Thus, as a business owner, you can better allocate the saved resources by investing in marketing or improving your products/ services.

2.  Enjoy Better Service from Professionals

Call centre outsourcing gives you access to highly trained customer support experts. Mostly, these experts know how to handle different types of customers. These professionals are skilled in:

• Using advanced tools
• Managing complaints
• Voice modulations

This level of expertise may be difficult and costly to build within your own company.

3. Grow or Reduce Support as Needed

Your business may have busy seasons (like festivals or special sales) when customer calls increase. At the same time, you might experience lean seasons when sales decrease. Through call center outsourcing, you can easily increase or decrease the number of agents as needed. 

There is no need to worry about hiring or firing employees. This makes your business more flexible and prevents extra costs when demand is low.

Challenges of Call Center Outsourcing

Despite saving costs and offering you access to skilled experts, call center outsourcing has several challenges:

1. Communication Barriers 

If your outsourced call center is in another country, the agents might not fully understand the:

• Local language
• Slang
• Cultural habits

This can lead to misunderstandings and poor customer experience. However, this issue can be solved by hiring a call center that has bilingual staff and can handle different types of customers.

2. Quality Control

When you do call center outsourcing, you depend on another company to communicate with your customers. If the agents are not well-trained or monitored, service quality may drop. 

To avoid this, you should:

• Set clear quality standards
• Regularly check how calls are handled
• Sign a Service Level Agreement (SLA) that ensures they maintain a high level of service.

3. Data Security Concerns

When outsourcing customer support, you may have to share sensitive data like:

• Customer phone numbers
• Payment details
• Order history

If the call center does not have strong security measures, this information could be misused or leaked. In 2023, the average financial loss that Indian companies faced due to a data breach was about Rs. 17.9 crores per incident.

Thus, to prevent this, you must choose a call center with strict security rules and use encryption to protect customer data.

How to Choose the Right Outsource Call Center?

To ensure you gain the most from call center outsourcing, you should choose the right provider that meets your business needs. Make the following checks:

1. Reputation

Before selecting a call center company, research its reputation in the market. Look for:

• Client reviews
• Ratings
• Feedback from other businesses

A call center with good reviews and experience in handling businesses similar to yours is a safer choice. Avoid providers with too many negative reviews about poor customer handling or hidden charges.

2. Expertise

Different businesses have different customer service needs. For example, a healthcare business needs agents trained in medical privacy, while an e-commerce business needs support for order tracking and returns. 

Thus, choose a call center that has experience in your industry so that they can handle customer queries better. 

3. Level of Technology

A good outsourcing call center should use the latest technology to manage customer service. They should have:

• CRM Software to store customer information and previous complaints.
• AI Analytics to track customer satisfaction and call quality.
• Omnichannel support to handle calls, emails, WhatsApp, and social media in one place.

4. Vendor Capabilities

Before finalising a call center partner, check their past work by requesting:

• Case studies
• Reports
• Client testimonials

Some outsourcing call centers even offer a trial period, so you can test their service before signing a long-term contract. As a tip, always request a demo or trial to see how they interact with customers before making a final decision.

Boost CX with Call Center Outsourcing. Let Atidiv Help You!

Call center outsourcing is a smart way to manage customer support. It allows you to:

• Save costs as you don’t have to develop your own customer support department
• Improve service quality as call centers have trained professionals
• Focus on growth without worrying about handling customer calls

However, whether you choose onshore, offshore, or nearshore outsourcing, selecting the right partner is highly important for success. 

If you are looking for a reliable call center outsourcing provider, Atidiv is the perfect choice. We follow a data-driven approach and track advanced metrics such as Average Handling Time (AHT), First Call Resolution (FCR), and customer sentiment.

So, want to save up to 60% on operational expenses? Partner with Atidiv today and take your customer support to the next level!

FAQs On Call Center Outsourcing

1. Will I lose control over customer service if I outsource?

No, you can set clear expectations through Service Level Agreements (SLAs). Also, keep monitoring performance using advanced analytics and provide regular feedback to your outsource call center.

2. How do I ensure data security when outsourcing?

Choose a call center with strict security protocols like:

• Encryption
• Access controls
• Compliance with applicable laws and regulations

Always sign a confidentiality agreement and ensure they have a proven track record in handling sensitive customer data securely.

3. What if the outsourced agents don’t understand my customers?

Ideally, you should always opt for a call center with experience in your industry. Also, to eliminate language barriers, request bilingual or culturally aligned agents from your provider.

Lastly, provide training to the call center agents on your brand’s tone, policies, and customer expectations. 

4. Is outsourcing cost-effective for small businesses?

Yes, outsourcing helps you to reduce overhead costs. There is no need to pay for:

• Office space
• Salaries
• Agent training

Many call centers even offer flexible pricing models. So, you only pay for what you use. This further saves you costs.