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The latest industry insights & news from CCSI, Specialists in Establishing Contact Centers in Mexico for Debt Collection, Customer Service, Sales, BPO and more.

call center needs and the benefits

Pros & Cons of Outsourcing Your Call Center Operation

Pros and Cons of Outsourcing Call Center

If you're thinking about outsourcing your customer service center, there are several factors to consider before making a decision. Perhaps you're in the early stages of searching for a solution that will help you cut costs and improve capacity and performance. 

 This decision can provoke mixed emotions - On one hand, you might have concerns about moving your operations overseas and all the implications that come with it. On the other hand, you may be excited about the potential cost savings. However, it's important to carefully weigh the pros and cons of call center outsourcing before moving forward.

Either way, you must be mindful of what is more significant for your primary operations and ultimate business objectives. This will allow you to make the most of the advantages while minimizing any drawbacks.

It's important to remember that outsourced call center services and call center outsourcing companies offer a wide range of options with varying service levels. These differences can significantly impact the customer experience and the overall success of your partnership.


Advantages of Outsourcing Your Call Center


Lower Costs

One of the main call center outsourcing advantages is that companies can offer lower costs which can be attributed to factors such as the lower cost of living in their region, their expertise in optimizing operations, or a cost-efficient business model.

For instance, in Mexico, agent wages are significantly lower compared to the United States, and the fact that contact center outsourcing companies are recruiting a significant volume of call center agents makes this task more cost-effective. It's worth mentioning that lower labor costs don't necessarily indicate cheap service.

Tip: To ensure you make an informed decision when requesting a proposal from a call center service provider, take the time to carefully review what is included and thoroughly understand their business model and the advantages offered by their various locations. 


Eliminate Staffing Issues

Call center outsourcing services offer a solution to common staffing issues companies face. Recruiting and retaining qualified call center agents can be a costly and time-consuming process, often giving little results. However, outsourcing companies specialize in recruiting and can provide a considerable volume of agents within the desired timeframe. Additionally, high turnover rates can be minimized as outsourcing companies invest in employee retention, ensuring a stable workforce.

Tip: To ensure a successful outsourcing partnership, it is important to ask about the service provider's HR processes and numbers, understand what is included in the pricing, and establish clear service level agreements (SLAs).


A Larger Talent Pool

Nearshore and Offshore call centers are mainly located in countries or regions with a large and diverse talent pool of call center agents, often experienced in various industries and customer service techniques. With a larger talent pool to choose from, you can select agents with the necessary skills to offer exceptional customer service.

In some cases, English speakers frequent areas with contact centers clusters job opportunities and the culture they find, just as in Little L.A. in Mexico City. The access to this workforce pool gives the value of looking for specific skills and fulfilling recruitment needs on time.

Tip: Learn about the size of the English-speaking population of the region and industries that predominate in the area to get an idea of the workforce skills you might find there and ask about the recruitment capabilities of the call center services provider. 


Shorter Response Times

By leveraging cost savings, eliminating staffing problems, and accessing a larger talent pool when outsourcing your call center operations, it enables you to choose the exact number of agents you need to meet the demands of your customer base. This way, you can ensure that customer inquiries and concerns are addressed promptly and efficiently.

Tip: To get the most out of your partnership, calculate a correct estimation of how many agents you need first and inquire about the service level outsourcing contact centers can provide.


Language Options

When considering outsourcing companies that are located outside the U.S., where the native language usually isn't English, you can gain access to bilingual agents who can handle client calls in two or more languages and serve a larger market.

For instance, many nearshore contact center destinations, such as Mexico, El Salvador, and Costa Rica, offer agents that are fluent in English and Spanish, making it very convenient for companies that sell to the U.S. Hispanic market.

Tip: Analyze your market demographics to see what languages are more convenient for your business.



Disadvantages of Outsourcing Your Call Center


Language & Cultural Barriers

When English is not a native language for an agent, it can raise language and cultural barriers with the customers. Effective communication is crucial in customer service, and if the agent is not familiar with slang or is unable to understand the problems and feelings of U.S. customers, it can lead to misunderstandings and dissatisfaction.

Tip: To avoid this issue, it is advisable to look for contact center companies that have a cultural alignment with the target market and are located closer to the U.S., Speaking with some agents beforehand can give an idea about their English accent and proficiency while understanding their background can provide insights into their exposure to U.S. culture and language.


Reduced Customer Satisfaction

The risks of outsourcing customer support can be significant, as what initially seems cheap can ultimately turn out to be expensive. When customers can discern that the agent is from another country based on their accent or when communication becomes unclear due to misunderstandings, it substantially impacts customer satisfaction.

Deficient language skills and cultural differences have the potential to significantly affect service quality, customer experience, call resolution rates, and the overall perception of the company.

Tip: To mitigate these risks, it's crucial to ensure cultural alignment and proficiency in English and maintain control over the operation to provide adequate training and improve performance. 


Indirect or Hidden Costs

When estimating the cost of call center outsourcing, it is important to avoid the mistake of just focusing on the hourly rate. While the hourly rate is certainly an essential factor to consider, there are several other expenses that need to be taken into account as well. 

These include travel expenses for your team to the outsourcing destination, additional personnel that may be required to manage the operation, training costs, software licenses, bonuses and incentives for the outsourced team, and the learning curve that the team may need to reach the desired performance.

Tip: It is recommended to carefully review the contract with the outsourcing provider to understand what is included in the agreement and what additional resources or services you may need to provide on your end. By calculating all these extra expenses, you can ensure that you have a comprehensive understanding of the actual cost of managing an outsourced call center operation.


Security & Privacy Concerns

When outsourcing your customer service operation, it is important to consider the access that will be granted to your customer database, contact information, and credit card data. This sensitive information must be handled with maximum care and security. Verifying that the service provider has up-to-date processes, policies, and certifications is crucial to protect your business and customers' information. 

Tip: Look for outsourcing companies with security certifications and policies already in place. When sending a Request for Proposal (RFP), include specific questions regarding their security measures to further assess their capabilities in safeguarding your data.



Bad Quality & Lack of Control

Some challenges can arise from distance and different time zones between your company and the outsourced center. This can lead to losing control over the operation and create issues with miscommunication and absence or insufficient feedback. The physical distance and time differences make it difficult to have real-time communication and can result in delays in addressing any problems or concerns that may arise. 

The lack of a dedicated quality control process or involvement can significantly impact overall performance. Without proper quality control measures, ensuring that the outsourced operations meet the desired standards and deliver the expected results becomes challenging. This can ultimately affect the success of the outsourcing partnership. 

Tip: Ask about the available reporting capabilities for timely feedback and monitoring and the level of participation you can have in the operation management.


Are Outsourcing Call Center Services Worth it?

Outsourcing is an excellent opportunity for companies to reduce costs, improve performance and focus on what adds value to the business. However, it is crucial to prioritize the customer experience throughout this process. To ensure a successful partnership, companies must conduct thorough due diligence and evaluate potential outsourcing partners carefully. This involves learning about the various business models available and visiting the facilities of potential providers to ensure that their outsourcing decisions align with their business goals. 



Call Center Services International's core business is to offer the best contact center solutions to help you establish a high-performance and cost-effective Nearshore Center in Mexico. 

We don't consider ourselves traditional outsourcing. Our model allows us to offer all the benefits of an outsourcing call center while giving you full control of the operation so it becomes an extension of your U.S. team.

CCSI will provide the legal framework, technology infrastructure, and professional administrative personnel while the agents follow your procedures and protocols. Discover more about our business model.

Request a free consultation with our Nearshore Experts to see if this solution is the right fit for your needs.