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Why are contact centers outsourcing?

A contact center is a physical location where calls are received or placed in high volumes. It used to be that when you called a company you would speak to a contact center representative directly in that building or one of the company's branch offices. Now days it is more likely that you will actually be talking to a person who is not employed by the company you are calling. Businesses are more likely to outsource their contact center than in years past.

There are many reasons why businesses do contact center outsourcing but the main reason is for financial reasons. It is less costly to outsource the jobs to someone else than to pay for benefits and the overhead for their own contact center. A business can lower the cost per contact by as much as 40% while providing a more consistent customer experience. This is a lot of money to save for a company. They have to look at that seriously and wonder if it is not worth it. The company saves on overhead, insurance for each employee, equipment, etc. All by outsourcing to a third party company.

There are drawbacks to contact center outsourcing however. One of the main concerns is that when you outsource to a third party company, the people who are answering the phones will not have the same drive or loyalty to the company than an actual employee of the company. They are contract workers and if the company loses money, it does not affect them directly. If for some reason the company decides to close their doors, the outsourced employees are generally not out the door and without a job, as they are working for another company who will simply place them with another company with a short time.

They do not receive the bonuses or the incentives that may stem from good sales, as an actual employee would receive. For those who work for the company and they see the company outsourcing other departments to third party vendors, it can cause tension among the ranks of employees. The full time employees feel that they are being told they do not do a good enough job, or that their jobs may be on the line, as it is well known that outsourcing is cheaper.

It is a tough decision for a company to make to decide of they wish to do contact center outsourcing. There is a lot of pros and cons for both sides. It has become quite common for companies to outsource into other countries, which can cause a lot of turmoil for not only the employees but any customer or client base who call and speak to someone in Canada or India It is of my opinion that companies should hire their own employees and keep them employed rather than outsourcing.