If you are running a business, especially a small business, it may be tempting to explore outsourcing as a means of cutting costs.
Many companies have reduced costs significantly in such areas as customer service, as well as less customer focused functions such as accounting, bookkeeping, or programming.
Any type of outsourcing can be fraught with risk, but in particular, outsourcing customer-facing work such as call centers or other customer service representation can be dicey territory for a business of any size.
The cost savings may be worth it, but there are risks that must be managed.
Here are 3 of the greatest risks to customer service outsourcing, and ways to manage those risks: Risk #1: Security.
One of the dangers in outsourcing any work is that key company data will be in the possession of non-employees, often overseas.
To mitigate this risk in the area of customer service, prepare a set of training documents that are designed specifically for the outsource employees, and screen this information carefully so that you are not handing over anything that the outsource employees don't specifically need to perform their duties.
Also, going with a large and reputable outsource firm is perhaps the best way to increase the level of security for your companies information, because these firms will have pre-screened the workers, and are likely to have a lengthy track record in outsourcing for customer service.
Risk #2: Performance.
As with any type of outsourcing, there is a risk in having customer service outsource employees who do not have a history with the company perform the work.
With customer service in particular, this can be dangerous as you want the most experienced professionals speaking to your customers.
To mitigate this risk, spend a ton of time on the outsource contract before you sign anything with a provider to establish your call center.
You should be able to dictate the level of training, and the specific testing requirements that each call center employee will have to achieve before becoming a member of the team.
In an ideal situation, you would be able to screen every single call center employees track record and be able to design your own call center person by person.
Risk #3: Efficiency.
This relates to performance, but refers to the degree to which employees at a BPO firm are performing at a productive rate versus the rate you could expect from your own employees who are under closer supervision.
The cost savings you generate from outsourcing a call center to, say, India, or Russia, or the Philippines, will disappear quickly if you find that the employees are not handling the number of calls that you expect, or are wasting time in other ways.
This is why you should use a BPO firm that is highly enabled with technological capabilities to track and monitor the performance of their employees.
Don't sign an outsource contract unless it specifies exactly how your employees will be monitored and measured over time, and make sure that you have access to these reports as soon as they are available.
These basic considerations should help you reduce the biggest risks that are inherent in the world of customer service outsourcing.