Should You Consider Outsourcing Your Customer Support?

Jun, 2024 - by CMI

Should You Consider Outsourcing Your Customer Support?

Are you finding it hard to handle incoming support queries? If your business is growing rapidly, it can be hard to deal with the influx. At some point you have to increase your support team. 

But that decision can mean making expensive changes, and you might not be ready to do that yet. In such a case, you might want to think about outsourcing your support department. It’s usually possible to do more cost-effectively than managing your own team. The problem comes in getting the timing right.

Ideally, you want to start just before you start experiencing issues with customer satisfaction. However, you don’t want to pay for excess capacity that you don’t need.

In this post, whether or not you should consider outsourcing your support department.

You Need More Time to Focus on Your Business

Is your team so distracted by incoming calls that they can’t get their primary work done? Are you seeing productivity dropping because there are too many customer queries? If so, it’s time to consider outsourcing support.

You need to perform a cost-benefits analysis that considers the opportunity cost of that missed time. Is it better for your employees to focus on strategic initiatives instead?

You Need to Cut Costs

It may sound counter-intuitive, but it’s not always the best idea to maintain an in-house team. Say, for example, that you manage an e-commerce store. Does it make sense to rent extra space to house an in-house team or is it better to outsource your e-commerce support? You also need to consider the cost of full-time benefit packages, training, and equipment. 

It’s also very difficult and costly to manage a full-time team. You have to work in redundancies that generally means hiring extra capacity. 

You might be wondering how it’s different to an outsourcing team. After all, the company partner will have the same expenses and they want to make a profit. Most of these companies base their operations in countries with lower living costs. Therefore, they can offer you competitive pricing.

You Need More Resources

Another issue to consider is that you’ll have to equip this team. If you don’t have the infrastructure in place already, this can be expensive. The same applies to resources like software and expertise. 

You need all your spare capital to invest in your core business. This means making difficult decisions, like choosing a less expensive CRM system. 

If, on the other hand, you partner with an outsourcer, you don’t have to worry about this technology. They’re in the business of delivering outstanding service. It’s their core competency so they’ll make investments accordingly. By partnering with them, you gain access to these resources.

Your Demand Fluctuates

One of the most compelling reasons to consider outsourcing is if your support demands fluctuate. Say, for example, that you sell Christmas decorations, you’re busiest towards the end of the year. It doesn’t make sense to keep a full-time team on board year-round. 

You can hire holiday staff, but will they have the skills to deal with your clients? In most industries, it’s students or the unemployed that can handle this work.

If you partner with the right company, they’ll allow you some flexibility. You could, for example, hire capacity during your periods. When demand is low, you might be able to switch to a more cost-effective shared team. 

You Need to Improve Service Levels

To illustrate this point, let’s take a rough example. It’s almost time to knock off, so most of your staff are finishing up for the day. A customer calls with the last-minute query and no one is keen to handle the call. When someone finally picks up, they’re watching the clock, so they rush the client. The client feels dissatisfied with the service.

Another scenario might be where you task new hires to answer phone calls. After all, how much damage could they do? They could do a lot, especially if they don’t know your products or services very well yet. They might give customers the wrong information, leading to reputational risk.

When you hire a third party provider, the job is to answer the phones. They do so professionally because they’ve been trained to do so. They consistently deal with your clients in a professional and empathetic manner. The customer leaves with a positive impression of your company. 


You should never rush to any business decision. You should always do your homework. However, if the points above resonate with you, it’s time to consider expanding your support department. 

Your next step is to perform a cost-benefit analysis of running an in-house team and hiring a third-party provider. If you decide to outsource, you need to choose your partner very carefully. Keep in mind that they become an extension of your brand. If you do the legwork upfront, you clear the way to a mutually beneficial partnership.