In-house vs Outsourced Call Center Operations

Dec-12-2020 385
  • In the last couple of decades, customer service has become one of the important parts of businesses across the globe. With increasing competition, retaining customers is as important as acquiring new ones. In this regard, the call center operations act as a business enabler for enterprises who are looking to expand their services across geographies which requires round-the-clock customer service support.



Below mentioned are some of the major factors to consider while setting up call center functions:

Set up cost

Hiring and training the call center agents

What should be the size of the operation?

Level of customer engagement required etc

Outsourcing call center operations

As per the latest 'Contact Center Outsourcing Annual Report, from 2020-2025', the call center industry will reach USD 13.67 billion, growing at a CAGR of 3%. In fact, enterprises all over the world are looking at external call center service providers to successfully manage changing business needs and deliver optimum value to their customers.

Significant cost savings

Often organizations outsource their call center services to reduce costs significantly. In some cases, the cost is reduced up to 50% of the operating cost in-house as there is no need to invest in infrastructure, technology and have a readymade available trained workforce for their business operations. These significant cost savings helps businesses to offer their services at competitive rates.

No more staffing issues

External call center service providers usually handle everything from hiring to training and managing a team of call center agents. The only thing you should be concerned about is who the key personnels are and how they will be handling your project. This minimizes your area of focus and helps you to concentrate more on core competencies.

Round the clock service at a fraction of the price

Call center operations at an offshore location helps you to provide round-the-clock support to your customers at a competitive price point. Outsourcing destinations like India offers a far better time zone advantage and helps many European and North American businesses by providing 24/7 services. The same activity done in-house would cost double the amount and, in turn decreasing the bottom line.

Ability to handle the overflow of peak traffic

Enterprises often find it difficult to address the issue of peak overflow of traffic. This can be easily handled in an external location where there is abundant staff, and you do not have to worry about the traffic, as they will have multiple delivery centers which can accommodate spikes at certain points and help your customers with their queries and achieve better first call resolution (FCR) rates.

Addresses business continuity

Businesses face a lot of challenges to give 100% uptime of their services. This can be true for their call center operations as well. By outsourcing the work to an experienced vendor in an offshore location, you are guaranteed 100% uptime. Outsourcing vendors with their multiple delivery centers, servers maintained in different geographic locations, and dedicated staff will ensure they provide you round-the-clock service and meet your customers' needs.

In-house call center operations

According to Research & Markets report, the global call center market is to reach $496 billion by 2027. Amid the COVID-19 crisis, the global market for call centers is estimated at US$339.4 Billion in the year 2020 and is projected to reach a revised size of $496 Billion by 2027, growing at a CAGR of 5.6% over the period 2020-2027. In-House, one of the segments analyzed in the report, is projected to record 5.5% CAGR and reach $380 Billion by the end of the analysis period. This percentage of in-house call center operations is due to the fact that many enterprises are acquiring call center outsourcing vendors and are expanding their horizons on the other side of the world.

Enterprises prefer in-house call center operations for various reasons

To provide better customer service

Enterprises will be able to provide better customer service when they have in-house call center operations as employees already have extensive enterprise knowledge, and they will be able to adhere to the vision, values, and goals of the organization better than call center agents sitting at an offshore location.

If you are considering providing in-house call center operations to just improve your customer service, then think again! An experienced outsourcing vendor can provide you everything you are looking for and more than that with regards to customer service. With in-house call center operations, you are starting everything afresh, whereas at an external location with an experienced vendor, everything is set up, and you have to just do a few hand-holding sessions with their key personnel and get your project started in no time. The added advantage of outsourcing is that you will be able to get your products to the market sooner than your competition.

To achieve high FCR rates

Call center agents located at an offshore location might lack the cultural knowledge and fluency as opposed to an in-house call center operation. This is where first call resolution (FCR) comes into the picture. Research over a period of time has shown that customers are more satisfied when they get their queries or problems solved within their first call to customer service. But on many occasions, the FCR rates do not meet the requirements from an outsourced call center operation due to various factors. However, this can be resolved by partnering with the right experienced vendor who has high FCR rates for their call center services. You can do a thorough check with your vendor's clients and ask for their reference if possible.

To have more control over business functions

By outsourcing your call center operations, enterprises will have very little control of that business entity which is at an offshore location. Yes, providing great customer service is an important part of your business, and that same level of commitment may not be shown by the vendor. But having an in-house call center operation comes at a cost, right from setting up the infrastructure, equipment, overheads, hiring and training, salaries, and more will be an additional burden on your shoulders. Moreover, this will be an additional process that needs to be set up and looked after and requires a considerable amount of time to be invested in getting it right, and this takes away your focus from core competencies.

To provide 100% focus

When you have in-house call center operations, the call center agents working here will be able to provide 100% focus on your customers alone. There will be no pressure on call center agents to receive or make more calls as supposed to in an external offshore location. With 100% focus, agents will be better equipped to serve their customers and offer better value to the business as well.

This is a very simple problem to solve at an offshore location where at the beginning of the project, you can have proper induction and training in a place where you can lay down the call center service KPIs with regards to customer satisfaction. You can even insist on certain KPIs are met no matter what and ensure that there is 100% focus towards your call center services.

To avoid security and privacy issues

Enterprises that keep their call center operations in-house are mainly due to security and privacy concerns for their customers' data. It is seen that many external call center service providers may not have strict authentication procedures to keep your customer's data safe. With call center agents employing a weak authentication procedure, internet fraudsters will have a field day.

Confidential information will always be at risk at an offshore location. But then again, this issue can be easily resolved by working with outsourcing vendors who are ISO 9001 and 27001 certified. Enterprises with ISO 9001 and 27001 certificates will have robust security standards and privacy laws in place to ensure your customers' data is in safe hands.The advantages of outsourcing your call center operations are far more compelling than the disadvantages.

Over the last two decades, outsourcing non-core work to an offshore location has become an important business strategic tool for enterprises across the globe. With ever so increasing competition, enterprises are looking at experienced outsourcing vendors to provide high-quality call center services and help them to focus on their core competencies and increase their bottom line.

Invensis is a globally leading call center outsourcing company serving clients located across the globe, since the year 2000. We offer inbound call services and outsourced customer services, along with complete contact center outsourcing.

Visit Call Center Services to know more.

Accelerate Your Business Growth Through

Business Process Transformation

Other Call Center Related Articles

Top 6 Call Center Trends for 2016 - invensis

Top 6 Call Center Trends

Ravi - October 30, 2020

Read This Article
Reasons to Outsource Call Center Operations to India - invensis

Reasons to Outsource Call Center Operations to India

Ravi - August 5th, 2019

Read This Article
Key Benefits of Call Center Outsourcing - invensis

Key Benefits of Call Center Outsourcing

Ravi - May 22nd, 2020

Read This Article

About Invensis

Invensis, is a leading IT-BPO service provider with 15+ years of experience offering an unprecedented and high quality call center services. Invensis provides call center services such as sales and customer acquisition; technical support / helpdesk services; multi-channel support; customer care; debt collection and more. By partnering with us, you can leverage the benefits of our state-of-the-art customer engagement contact center solution and add more value to your business offerings.