The Pros and Cons of Outsourced Customer Service

No matter the industry, businesses rely on customer service to retain their clients in the long term. An in-house or outsourced customer service team represents your brand, addresses client needs, and reinforces your company’s reputation as trustworthy and capable. Whether your business is B2C or B2B, connecting with clientele through exceptional customer service should be a priority for various reasons. Research shows that a customer’s experience substantially influences their loyalty—91% of customers are more likely to make another purchase after a positive customer service experience. 

With so much riding on quality customer service, businesses new and old are developing dependable and innovative CS strategies. Outsourced customer service emerged as an alternative to in-house teams that leverages diverse talent, reduces costs, and increases business adaptability.

While outsourcing is slowly becoming an industry standard, many businesses are still apprehensive about making the switch. Let’s examine the pros and cons of outsourced customer service. 


1. Minimize Cost

Between interviews, training, and management, fronting an in-house customer service team can become a costly process. Outsourcing can save time and costs. You skip the learning curve–and any potential financial headaches–by starting with experienced professionals that know how to navigate customer service. 

2. Enable Growth 

Outsourcing keeps businesses centered on innovation and production. Managing in-house customer service teams can require an immense amount of time, energy, and effort. Outsourcing CS frees up resources you can use to expand sales, boost production, grow your client base, and ultimately increase your overall efficiency. When done correctly, outsourced CS benefits your company culture by allowing more growth opportunities and reinforcing kaizen, a principle of continual improvement. 

3. Find the Right Talent

When building an in-house CS team, connecting with the right representatives during the hiring process can be a significant challenge. Outsourcing agencies that specialize in CS have a much broader talent pool to draw from than those who do not. Work with experts you can trust to take care of the heavy lifting, finding high-quality talent and matching the best candidates with your business. At Bandalier, our carefully-crafted process sources the top 2% of small-town talent, prepares them for a professional CS role through our powerful training program, and matches them with opportunities that fit them best.

4. Discover Resources 

When it comes to resources, outsourced customer service companies have a leg up on in-house teams. Why? Well, outsourced CS companies usually have portfolios of resources at their disposal that have been developed over time. As specialists in the field, outsourced customer service reps bring more experience with customer relationship management tools (CRMs) and other tech that boosts efficiency and quality. Plus, as a part of an extended CS system, outsourced reps have access to the experience and expertise of their peers. 


1. Quality Control 

Skeptics of outsourced customer service worry that representatives will be poorly managed and low-performing. In-house customer service has the benefit of personal management; business owners can directly train and monitor the performance of each representative. The distance that comes with outsourcing feels daunting if you can’t have confidence in your team to perform remotely. This is why you must be selective about which CS company you choose as your partner. The right agency should have a highly-developed quality control system where representatives are encouraged to set weekly goals and provide regular updates, so business owners can rest assured and focus on the day-to-day demands of business.

2. Poor Brand Tone

Another criticism of outsourcing states that in-house team members are less likely to misrepresent your company. In-house reps are exposed to your company culture and may understand your company’s brand and audience. Regarding the right tone, however, even the most talented representatives (in-house or outsourced) can miss the mark. All CS employees must actively connect with the business they’re representing to be successful. At Bandalier, we train each representative to take a thoughtful approach, acting as a true extension of the team to embrace and embody your company’s values.

3. Inflexibility

Some outsourced customer service providers use long-term contracts that stifle their clients’ flexibility. Contractual limits may concern business owners who worry they will begin to rely on an outsourced team, then be left with their hands tied.

Let’s say you’ve found great success with outsourcing, but have grown to the point where you’re prepared to build your in-house servicing team. So, where do you go from here? Above all, it’s important to choose an agency partner that understands your needs.  At Bandalier, our clients have the opportunity to hire our representatives directly to their in-house team. Our priority is keeping you in the director’s chair with your team running efficiently.

Outsourced Customer Service Without the Cons

As it grows in popularity, outsourced customer service is only becoming more accessible. While outsourcing presents profitable opportunities, choosing the right provider makes the difference in eliminating concerns and developing a high-performing team. Bandalier is at the forefront of innovative, outsourced customer service. We’re focused on empowering our CS talent with the tools and resources they need to then empower your business. It’s a win-win. 

Looking for an outsourced customer service provider you can trust? Let’s talk.