Onshore outsourcing: balancing cost and quality in customer support
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“Thank you for calling Customer Support … how may I help you?” What follows that question could lead to someone bragging about your business. Or it could lead to a viral meme poking fun at what’s left of your reputation. That dilemma is at the heart of decisions about onshore outsourcing.
Choosing onshore outsourcing comes down to how much great customer service matters to you. It’s the practice of a company hiring an external organization within the same country to handle specific processes or functions. Typically, the process or function is something that’s important but isn’t part of the company’s core business. For example, a tech manufacturer might use onshore sourcing to handle customer service.
It allows companies to concentrate their limited time and energy on their core business. Often, onshore outsourcing is helpful when it becomes difficult to hire certain positions. In a tough job market, it can be difficult to find experienced customer service team members without paying higher salaries.
One of the most significant advantages of the approach is improved communication. When both parties speak the same language and are in similar time zones, it is easier to communicate and collaborate effectively. This makes it simpler to share information, discuss project needs, and address any issues that may arise. It also helps in resolving problems quickly and efficiently. This seamless communication leads to greater efficiency and productivity, as well as a higher level of customer satisfaction.
You may have heard of companies outsourcing work to other countries to handle certain tasks or functions. For example, some companies choose inexpensive call center services located in places like India and the Philippines. However, while this approach may seem cost-effective initially, several challenges can offset any financial benefits:
- Linguistic Barriers: One of the most notable challenges of offshore outsourcing is the language barrier. Agents may speak English well, but accents and cultural differences can cause misunderstandings with customers from diverse backgrounds.
- Cultural Differences: These can affect customer service interactions, where understanding local customs and expectations plays a crucial role in customer satisfaction.
- Time Zone Issues: Dealing with time zone differences can make communication harder and delay responses, which can upset customers who want fast service.
- Security Concerns: Data security and privacy are critical, especially when handling sensitive information. Offshore locations may have different regulations, which can pose a risk.
On the other hand, onshore outsourcing can mitigate many of these issues. The benefits include:
- Improved Communication: Sharing the same language and cultural context significantly improves communication between the service agents and customers.
- Alignment with Business Hours: Working within the same time zone facilitates real-time communication and quicker problem-solving.
- Enhanced Security and Compliance: Onshore partners are subject to the same legal and regulatory framework, offering better control over data security and privacy.
- Boosted Customer Satisfaction: Customers often report higher satisfaction when dealing with agents who understand their language and cultural nuances deeply.
One of the biggest potential issues with offshore outsourcing is cultural compatibility. Beyond a shared language, effective customer service requires an awareness of and respect for cultural differences. A busy executive in Manhattan may not want to talk much. However, a retired homeowner in Iowa will gladly chat for a while. Our communication may begin with words, but it’s shaped by tone, inflection, nuance, and all sorts of other factors having a significant effect on how we deal with others.
Some companies think being in the same country is key for customer service, but it’s not always the case. When considering providers, pay even more attention to how their agents deliver that service. It’s not as easy as assuming an American address means they’re better.
After all, you want to be completely confident that whoever handles your next customer service call will be friendly, genuinely interested in solving the issue, and will relay accurate information at the customer’s level of understanding. Just because a provider is “U.S. based” doesn’t mean they hire people who are both smart and nice.
Managing costs is crucial for onshore outsourcing, as it is usually more expensive than offshore options. However, the higher quality of the service and greater customer satisfaction offset many of the cost differences. In addition, because companies providing outsourced services typically work with many clients, the costs associated with overhead can be spread out among them. When comparing the ROI of onshore outsourcing to other alternatives, don’t lose sight of the benefits of superior service, especially having happier customers.
Jeff Medley is the CEO and founder of Netfor: https://www.netfor.com/