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Customer service is essential for any business, no matter how big or small it is. There are proven benefits of providing quality customer service, such as increased customer loyalty, retention, and satisfaction. To deliver excellent customer service, you need a team of trained and skilled customer service representatives (CSR) who can handle customer queries and issues. However, hiring and maintaining an in-house CSR team can be expensive and challenging, especially for small to medium businesses. That’s why outsourcing customer service is a smart option.

In this blog post, we will share with you things to consider when outsourcing customer service.

Things to consider before outsourcing customer service


When considering outsourcing customer service, there are several factors you need to consider:

Onsite or Remote Setup?

When you decide to delegate customer service tasks to a third-party provider, you have to consider the location of your potential agents. Do you want them to work in your office or from their homes? You should look for an outsourcing company that can accommodate both options or even better, offer them as well.

Important factors to consider when choosing a potential location is the IT infrastructure and ensuring office space has all the essential utilities for your operations. You want to ensure that the office space can accommodate your employees and has reliable internet and telecommunications access. This will make it easier for you to set up your IT systems, such as computers, network, telephones, data centers, and security systems, etc.

For remote teams, make sure remote teams use a digitally secure remote setup with 24/7 IT Support to work from their home or onsite.

Offshoring or Nearshoring?

Various countries are favored destinations for US, UK, Canada companies seeking to outsource their business operations. US, UK, Canada companies can either outsource customer service through nearshoring or offshoring.

Nearshoring is a business strategy that involves outsourcing some or all of the operations of a company to a nearby country. Nearshoring can offer many advantages for businesses that want to reduce costs, improve quality, and increase agility. Here are some of the benefits of nearshoring:

Nearshoring can help businesses save money on labor, transportation, taxes, and tariffs. Additionally, nearshoring can reduce the expenses associated with shipping, logistics, and customs, as well as the risks of currency fluctuations and exchange rate volatility.

Nearshoring can also improve the quality of the products and services delivered by the outsourced partner. By working in a similar time zone and regional market and customer preferences, businesses can communicate more effectively and efficiently with their nearshore team, avoiding delays and misunderstandings.

A shorter physical distance and a smaller cultural gap lets businesses can collaborate more closely. Furthermore, nearshoring can help businesses adapt more quickly and easily to changing customer demands, regulatory requirements, and competitive pressures.

On the other hand, Offshoring is a common practice for companies that want to lower their costs and improve their efficiency by outsourcing customer service to a country located offshore. However, it also has its pros and cons that need to be considered carefully.

One of the main advantages of offshoring is the opportunity to save a lot of money. By outsourcing customer service work to countries with lower labor costs and overheads, companies can gain a significant financial edge. The practice allows businesses to benefit from economies where wages are much lower, making their budget go further and boosting their profitability.

Another strong benefit of offshoring is the access to a large pool of skilled workers that may not be easy to find locally. By extending operations to other countries, businesses can tap into specialized skills and knowledge that can enhance innovation, efficiency, and growth.

Furthermore, offshoring customer service can also lead to increased operational efficiency. Time zone differences can be used strategically, enabling 24/7 operations and quicker project delivery times. By taking advantage of diverse infrastructure, technology, and culture, companies can leverage the strengths of their offshore partners or subsidiaries. This can result in higher productivity, shorter lead times, and better customer service.

However, one major drawback of offshoring is maintaining quality control. The geographical distance between teams and the lack of direct contact can make it hard to ensure consistent quality standards. Problems with communication, understanding requirements, and maintaining process consistency may occur, which is why it is important to select the right offshoring provider.

Which Country Should You Outsource To?

Choosing between nearshoring and offshoring depends on the company’s needs, with outsourcing often offering quicker solutions for non-core competencies. Selecting the right outsourcing partner involves careful consideration of the location and expertise of the destination.

The Philippines, for one, is renowned for its expertise in customer service and BPO, benefiting from its English proficiency and supportive regulations. If you’re interested in getting started in offshoring to the Philippines, check out our previous blog.

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