6 Reasons Why Outsourcing Customer Service is a Bad Idea

Full bad idea

When you grow your own business and you have the great vision for it, you may want to provide convenient and satisfying customer service for your customers and meet their needs no matter what it takes

Customer service is a very important part of any business. It can help your company move forward or downgrade everything you have achieved, no matter how big or sophisticated your business is. The modern age of marketing shows us how important it is to make customers’ contact as productive and positive as possible. One of the ways small companies aim at this challenge is through outsourcing by employing external agencies or third parties to manage customer care operations.

If you have thoughts about outsourcing choices, you should think of possible disadvantages. Each of them can have a massive impact on your business. Outscoring should be avoided at all costs. 
1. Loss of managerial control 

When you choose to sign a contract with another company, it will perform the function of a single task or the entire department. All the control and management of that function are turned over to other parties. A contract will be in your hands, but the company will have the managerial control. In many cases, the different mission and standards that drive the outsourcing company are fundamentally different then what drives your business. 

2. Hidden costs

 A signed contract between you and the outsourcing company will cover all details of the services they will provide. Anything not covered will make you pay additional charges. Also, you will have to pay fees to a lawyer for reviewing the signed contracts. Remember one thing - outsourcing companies have done this before! They will be the ones who will write the contract, so you are at a disadvantage from the start of the negotiations.

3. Threat to confidentiality and security

 Information flow is the most important thing in any business. If you have confidential information, such as medical records or payroll that will be transferred to the outscoring companies, you risk breaking compromises. You should be aware that signed contract involves sharing company knowledge or data (e.g. formulas, product drawings, etc.). Carefully evaluate the company you’ve signed contract with and make sure the contract contains a penalty clause in case your data is not protected.

4. Quality problems

 The outscoring companies are motivated by profit. As soon as the contract fixes the price, they’ll try to increase the profit by decreasing expenses. Very soon you will realize they meet conditions of the signed contract and you will pay. Even worse, you can lose ability to respond to changes, because the contract is very specific and every change could cost you additional money.

5. Financially tied to another company 

Since you have signed the contract and turned part of your operations to another company, you will be tied to financial records of that company. This would not be unusual as the outscoring companies often leave clients holding-the-bag.

6. Ill will and bad publicity.

Different people will think differently about the word “outsourcing”. If you reside in a community with outsourcing company and employ your neighbors and friends, outsourcing is good. If your neighbors and friends lost their jobs since they were shipped across the world or just across the country, outsourcing will definitely bring bad publicity. Outsourcing just part of your operations can lower the moral of your remaining work force. To these employees, outsourcing may signal that their jobs are at risk and will be eliminated by the outsourcing company. The management team should take care of the way the message is delivered to the employees. When major changes come to company (company functions or outsourcing departments), communication with employees can be the key to further progress.

Outsourcing attracts a lot of attention over the years. The most of the stories in the news involves the overseas jobs (India, China…), often manufacturing jobs, computer programming jobs or call center jobs. Some see outsourcing as unnecessary evil, while others see outsourcing as the savior. Whoever you are, be sure you understand what exactly is the outsourcing and consider all the disadvantages it brings, before signing a contract with any of these companies.

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