Why Do Big Companies Outsource Call Centers And Does The Practice Work For Small Businesses?

Why Do Big Companies Outsource Call Centers And Does The Practice Work For Small Businesses?

Outsourcing different business services is very common—many large companies outsource their call centers as a way of cutting costs. Outsourcing to a subcontractor abroad is also becoming increasingly common, although this practice is not always very popular with customers, thanks to the problems caused by language barriers and a lack of empathy.

A lot of small business owners view the concept of outsourcing with great suspicion. But this is a huge mistake. In reality, small businesses already outsource various services without even giving it a second thought. Accountancy, legal, and even cleaning services are often taken care of by a subcontractor, so call centers and telephony are no different.

Taking this into account, small businesses can learn a lot from how big companies do things and there are many reasons why outsourcing to a subcontractor is a good idea.

Top Reasons for Outsourcing

Why Do Big Companies Outsource Call Centres And Does The Practice Work For Small Businesses?

  • Cut overheads—Reducing expenditure is the main reason why big companies look at outsourcing their call centres, but small businesses can also save money by doing the same.
  • Share infrastructure – One of the biggest problems small businesses have is that they don’t have the capital to invest in IT infrastructure. Outsourcing takes care of this problem very well because instead of having huge up front costs, the business can share an existing IT infrastructure already in place.

Problems with Outsourcing

Problems arise in outsourcing call centres and other telephony services when the provider is chosen based purely on the fact they are offering the most competitive rates. Outsourcing services can and does work, but if you choose the wrong partner, things will soon go wrong and the service may end up costing you more in the long run, especially when you lose large numbers of customers.

Tips for Small Businesses Looking to Outsource Call Centres

Why Do Big Companies Outsource Call Centres And Does The Practice Work For Small Businesses?Be very clear on what type of service you need – do your research and find out exactly what type of services are on offer.

  • Choose your partner wisely – Make sure the provider you go with can provide a level of service you are happy with. Cost is important, but it is not the be all and end all.
  • Risk Management – Look closely at the risks involved before you sign any kind of agreement with a service provider and make sure you have stringent quality controls in place.
  • Currency issues – If you choose a foreign partner, make sure you pay them in your own currency or you could end up being hit by high costs due to currency fluctuations.

Outsourcing call centres and other telephony services is often a smart move for small businesses. If you choose the right partner you can streamline your business and cut costs. But you should only do this if you feel that someone else can do a better job for less. There is little point in saving money if the end service is inferior to anything on offer previously—this will impact on your business in a negative way.

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This post has been authored by James Morrison, an employee at Simplified Telephony Solutions which provides cloud based call center solutions. His hobbies include golf and fishing. Visit sim-phony.com/ to know about his work.
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Mark Montoya has been working in personal branding for more than a decade for hundreds of online and offline companies, small businesses and individual service professionals. His focus has been toward improving the way jobseekers find employment on the Internet. He has synthesized his expertise by helping job seekers obtain their ideal choice of employment over the Internet on his sites MyOnlineCareerSpace.com and MyOnlineCareerCoach.com, and through his books 101 Tips Every Job Seeker Should Know and The Ultimate Online Job Search eBook.

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