Call Center Outsourcing Advantages - 5 Reasons For A Company To Use
Most companies are constantly being challenged to improve their performance by its employees, customers, competition and investors. For instance, this might be company growth, revenue, service quality, competitiveness, profitability and other metrics. So, let’s take a look at what are some of the call center outsourcing advantages for a company to use to help improve its business performance.
To start, we need to review some basics about call center outsourcing services.
Firstly, a call center is a centralized facility that is equipped to handle large amounts of customer telephone requests for an organization. Basically a call center handles telephone-based communications with prospective, new and existing customers. Also, the “call center agents” may communicate via chat, email and social media. This is called a multi-channel “contact center”.
Secondly, call center outsourcing is a decision by a company to subcontract its call center management function to an external third-party vendor who does it for a living. Generally a company reaches this decision if the call center management function is NOT perceived to be their core business value or it is something they are very uncomfortable with doing.
1 – Call Center Outsourcing Advantages – Save Time
One of the key call center outsourcing advantages is that it helps save time for the company management. Time is a business asset that is always limited, cannot be purchased, often wasted and critical to the success of any business. In simple terms, proper time management is crucial to business success, whether it is the owner, a manager or member of the work group.
Successful time management for a company manager is all about self-control and the ability to assess and justify how the time is being invested. Accordingly, what is the core focus of the company should be prioritized, and the remainder should be delegated to a third-party call center outsourcing provider.
The underlying assumption is that the call center function is NOT a core focus of the company. So the company management is involved managing the provider relationship and not the call center operational details. Consequently the company management saves time for more productive business activities.
Successful companies use call center outsourcing to maximizing their productive use of time. Specifically, their management prioritizes and focuses on what is important to the success of the company and delegate the rest.
2 – Reduce Costs
One of the key call center outsourcing advantages is the opportunity for a company to produce significant costs savings related to its call center functions. Because most companies are under pressure to manage or reduce costs, using a third-party provider is generally less expensive than doing it in-house.
Specifically your company can eliminate costs related to facility space, infrastructure, call center technology, support, capital and most significantly, labor costs. So this can produce a significant savings for your company because labor is the highest percentage of the call center function.
Specific labor cost savings include;
- Less Recruiting
- Lower Retraining
- Less Personnel Rotation
- Lower Base Salaries And Benefits
- More Flexible Labor Regulations (Nearshore, Offshore Service Providers)
- Reduce Or Eliminate Human Resource Management
- Lower Operational Management Supervision
- Existing Company Personnel Now More Productive Focusing On Core Business
The resultant cost savings allows your company to invest in improving quality, adding additional services for your customers, expanding to other business areas or simply increasing your financial capital.
3 – Call Center Outsourcing Advantages – Simplify Scaling
When a company is in the second phase of its business cycle, the growth phase, it is time to scale up. That is, it needs to make decisions to adjust, grow and expand in a profitable way. Accordingly, the variety of call center outsourcing advantages allows a company to manage this growth phase.
What types of growth challenges will a company experience as it scales up? Following are challenges most companies experience:
- Cash Flow Management
- Increase Competition
- Nurturing A Company Culture
- Delegation & Prioritization
- Adapting To Market Changes
- Abandoning What Doesn’t Work
A company using third-party call center outsourcing services allows it to deal with the above business challenges in a variety of ways. For example these include:
- Lower Labor Costs (See Above)
- Expand Service Coverage (Markets, Languages, Multiple Time Zones)
- Adjust Support Staffing Due To Seasonality Highs/Lows Call Spikes
- Increase Flexibility For Staffing Business Expansion And Contraction
- Launch New Products And Promotions
- Supplement Staffing With Specialized Skill Sets For New Opportunities
- Strengthen Back-End Operations (BPO) To Support Growth
Call center outsourcing advantages allow a company to adapt to the growth and changes of this business phase. However the company is still challenged by the required overall planning, funding, systems, staffing, processes and technology. But using call center outsourcing services provides a company a variety of options to help scale up for these challenges.
4 – Increase Flexibility
For a company to be successful in this changing world, it must be flexible. Specifically the business environment constantly experiences rapid changes in technology, economy, client behavior and governmental legislation. Consequently, only companies that are flexible to adapt to these changes will succeed. Conversely, more rigid companies will fail to adapt and not survive.
Among the call center outsourcing advantages is providing a company a range of options to increase flexibility and adaptability. Consequently, here are some ideas a company should consider to evaluate its business flexibility:
- Increase adaptability to change, particularly technology and customer expectations by leveraging a variety of skill sets and infrastructure of third-party call center provider.
- Improve company employee retention by outsourcing the call center function role and focusing on core company needs assistants.
- Strengthen the personnel talent pool by increasing the diversity of staffing by a combination of company and outsourced call center staffing.
- Diversify call center function role across multiple locations (domestic and offshore) allows continuity during change and uncertainty.
- Greater ability to adjust staffing, resources and cost structure as demand changes by utilizing the third-party call center provider’s workforce management experience with the least amount of resources.
A company that is flexible responds to change by evolving. Consequently the most flexible companies do not fight change. But rather they accept and adapt as a normal aspect of the changing business environment.
5 – Call Center Outsourcing Advantages – Increase Efficiency
One of the call center outsourcing advantages is that it helps increase the efficiency of a company. Efficiency measures how well a company converts inputs like capital, labor and materials into outputs like revenue, products and services.
There are three main areas of company efficiency that greatly benefit by using call center outsourcing services: financial, labor and operations. Let’s discuss each in greater detail.
A company’s financial efficiency measures its expenses as a percentage of revenue. Consequently using a third-party call center provider save time, reduce labor costs, simplify company scaling and increase flexibility. So, this reduces a company’s expenses and increases its revenue.
The labor efficiency of a company is the measure of employee output in an hour of work. As shown above, redistributing labor activities based on priority, value, skill set and cost improves the total level of work group output. Additionally, adapting technology improvements to a distributed work group allows for increased productivity and flexibility.
Operations efficiency is related to the core company processes such as manufacturing and services delivery. Because this is where the majority of business costs occur. Hence call center outsourcing services save time, lower labor costs, and strengthens adaptability to changes in processes and procedures. As a result, the whole area of a company’s operations is streamlined over time.
A company is constantly being challenged to improve its performance by its employees, customers, competition and investors. Accordingly, we have presented different call center outsourcing advantages that can help improve a company’s performance. Lastly, outsourcing a company’s call center function can be done in distinct stages, while reducing risk and gaining valuable experience.
Please call us at (888) 339-6699 to discuss how our call center outsourcing services will serve your business needs or Contact Us.