Outsourcing customer service started in India in the 1990s due to its large English-speaking population and low labor costs. However, in recent years the Philippines has emerged as a top destination for outsourcing customer service due to its highly educated workforce, cultural compatibility with Western countries, and government support for the industry. The Philippines also has a strong emphasis on hospitality and customer service in its culture, making it an ideal location for outsourcing this type of work. With a 3.51% compound annual growth rate (CAGR) in a five-year period, customer service is one of the most outsourced functions for businesses of all sizes.

What is Customer Service Outsourcing?

Customer service is the process of providing assistance and support to customers before, during, and after they purchase a product or service. It involves addressing customer inquiries, complaints, requests, or feedback and helping them to have a positive experience with the company. The goal of customer service is to build trust and loyalty with customers by providing excellent service and ensuring their satisfaction.

Outsourcing customer service involves delegating customer service operations to a third-party vendor. These operations may include handling phone calls, responding to emails, providing chat support, managing social media interactions, and processing orders. Other tasks that may be outsourced include providing technical support, addressing billing inquiries, managing customer accounts, and handling returns or exchanges. 

Business processing outsourcing (BPO) companies are often contracted to provide these services, and they are expected to have a thorough understanding of the company’s policies, services, and products. By outsourcing these functions, companies can focus on their core competencies, while leaving customer service operations to specialized providers who can efficiently manage customer concerns, issues, requests, or feedback.

Benefits of Outsourcing Customer Service

Initially, outsourcing customer service began as a cost-cutting exercise; however today, outsourcing customer services is known to contribute in improving productivity and profits. 

 The benefits of outsourcing customer are as follows:

1. Increased Customer Engagement

One of the significant advantages of outsourcing customer service is the opportunity to leverage the service delivery expertise of the outsourcing provider. By partnering with a skilled and experienced provider, a company can ensure that its customers have positive and satisfying experiences with every interaction. This can lead to increased engagement and retention, as customers are more likely to return to a company that provides excellent customer service.

Companies can also benefit from the technology and infrastructure that the provider has in place. A reputable outsourcing partner will have the necessary tools and resources to provide efficient and effective customer service, such as advanced call center software, customer relationship management systems, and other technologies that enable them to handle large volumes of inquiries, complaints, and requests. By outsourcing customer service, companies can take advantage of these technologies without having to invest in them themselves, which can be a significant cost savings.

2. Broader Market Reach

Another significant benefit of outsourcing customer service is the potential to expand a company’s market reach. Outsourcing providers often have a global presence and the ability to provide customer service in multiple languages, making it easier for companies to reach customers in new markets.  For example, Sourcefit recently expanded its services to the Dominican Republic, where they can provide customer service in Spanish to better serve customers in Latin America or for the hispanic market in the US. This is particularly important for companies that are looking to expand their operations beyond their domestic market.

 Moreover, outsourcing customer service can help companies to better understand and cater to the needs of customers in different regions. An outsourcing provider with expertise in a specific region can provide valuable insights into local customs, preferences, and consumer behaviors, allowing companies to tailor their products and services to better meet the needs of their customers. 

3. Diverse Customer Service Options

Outsourcing customer care can provide a variety of customer service solutions. Depending on their unique needs and priorities, companies can choose to outsource one or more of these solutions:

Inbound and outbound call center services

This includes handling customer inquiries, providing technical support, processing orders, and managing customer accounts, among other services.

Email and chat support

This involves responding to customer inquiries, complaints, and requests via email or chat, providing timely and helpful assistance.

Social media management

This includes monitoring and responding to customer inquiries, complaints, and feedback on social media platforms, such as Facebook, Twitter, and Instagram.

Technical support

This involves providing assistance with technical issues related to a company’s products or services, such as software or hardware problems.

Back-office support

This includes administrative tasks, such as data entry, order processing, and billing support.

4. 24/7 Availability

Outsourcing customer service can provide companies with the ability to offer around-the-clock customer support to their customers. Outsourcing providers can offer 24/7 availability by employing customer service agents in different time zones, allowing them to handle customer inquiries and issues at any time of the day or night.

This benefit is particularly important for companies that operate in industries that require 24/7 customer support, such as healthcare, finance, and e-commerce. For instance, 43% of online shoppers anticipate round-the-clock customer service from e-commerce or online retailers, while 36% expect customer service to be available for about 12 hours each day, 7 days a week, such as from 8 a.m. to 8 p.m.Offering 24/7 availability can improve customer satisfaction, increase customer loyalty, and reduce the likelihood of lost sales due to customer frustration or dissatisfaction.

5. Expertise in Specialized Industries

Outsourcing customer service can provide companies with access to specialized expertise and knowledge in specific industries. For example, if a company operates in a highly technical or regulated industry such as healthcare, legal, or finance, outsourcing providers can offer customer service agents who are trained and knowledgeable in that industry.

 These specialized agents can provide expert assistance to customers who have complex questions or issues related to the industry, improving the overall customer experience. Additionally, outsourcing providers can offer customized training programs for their agents to ensure that they are up-to-date on industry regulations, terminology, and best practices.

 By outsourcing customer service to providers with specialized expertise, companies can ensure that their customers receive high-quality and accurate information, which can enhance their reputation and brand image.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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