Call Center Operations: Outsourcing Vs Insourcing

Outsourcing is a practice that has been around for decades, but until recently it was reserved for Fortune 500 companies.

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Insourcing vs Outsourcing

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  • Outsourcing reduces costs of operations
  • Outsourcing increases level of service to customers
  • Outsourcing gives access to a larger pool of talent
  • Outsourcing improves quality of work and service delivery
  • Outsourcing improves employee productivity
  • Outsourcing is conveniently cheaper than insourcing
  • Insourcing cuts out the middleman
  • Insourcing has direct control over the customer service
  • Insourcing improves employee morale
  • Insourcing offers better control over costs
  • Insourcing allows better control over costs
  • Insourcing will hire more qualified applicants
  • Insourcing is inconveniently expensive than outsourcing
With the advent of technology and increased globalization, outsourcing has become an attractive option for small business owners, who can outsource many functions to low-cost providers overseas or in other parts of the country. However, when it comes to choosing between outsourcing and insourcing — which is better?

There’s no denying that outsourcing your call center is cheaper than insourcing. But is it really worth it? If you’re still on the fence, here are some pros and cons to consider before outsourcing your call center.

Benefits of Outsourcing Call Center

Benefits of outsourcing
Benefits of outsourcing

Reduction in cost of operations

If you’re looking to save money, outsourcing is a great option. Outsourcing provides the opportunity for companies to cut their overall cost by hiring employees outside their own locations. In fact, one study found that the average U.S. company spends $16,000 to $20,000 per year in salary costs alone. That’s why outsourcing is so appealing to small business owners, who can save thousands of dollars by cutting costs while retaining the skills of their current workforce.

Outsourcing also allows businesses to avoid having to invest in costly equipment and infrastructure, such as computers and high-speed Internet connections.

Increased level of service to customers

As a result of outsourcing, companies are able to increase customer service levels, especially for their call centers, which handle the majority of customer interactions. This is important because a company’s customer service experience is one of the most important factors in whether or not they choose to do business with that company.

Outsourcing also allows call center agents to focus on the tasks they are best at, such as taking orders or managing accounts. In fact, many companies are finding that employees at outsourced call centers are less likely to become distracted by the other functions of the call center, since they aren’t being asked to perform those tasks.

Access to a larger pool of talent

Because your call center will likely be located outside your company’s area, it’s likely that you’ll have access to a larger pool of talent. This is especially true if you’re looking for workers who speak a language other than English. Outsourced call centers are able to recruit workers who live in other countries, and are typically willing to accept lower wages. This can translate into lower costs for hiring and training.

Improved quality of work and service delivery

Outsourcing also gives businesses the opportunity to improve the quality of the work they do. With this option, companies can cut down on costs and boost efficiency by employing call center professionals who can work from a remote location.

Many large companies that outsource their call center operations are able to do so because of the improved quality of the services they provide. This is because a company is no longer responsible for hiring, training, and managing employees; instead, it’s left to contract workers overseas.

Improved employee productivity

Many organizations find that the cost of retaining employees is far greater than the cost of hiring new employees. When a company outsources their call center operations, it allows them to have their current employees to continue to use their skills and gain valuable experience. By outsourcing their call center operations, many companies are able to retain their employees, and avoid having to invest large amounts of money to train new call center employees. In addition, outsourcing gives employees a chance to work in a different environment that will help them learn new skills and develop their career.

Benefits of Insourcing a Call Center

Benefits of insourcing
Benefits of insourcing
In-sourcing is the opposite of outsourcing. With in-sourcing, you hire employees within your own area. It’s much more expensive to hire employees at home than it is to hire employees overseas but, still there are number of advantages of in sourcing call centre operation like:

Cutting out the middleman

In-sourcing your call center operations gives you the best of both worlds. It provides you with control over your operations, but it also allows you to take advantage of cost savings by cutting out the middleman.

Direct control over the customer service

The benefits of insourcing in call center operations are that you can achieve higher customer satisfaction. This is because when you have your own call center, you can have direct control over the customer service representatives and how they treat your customers.

You can monitor and make sure that your reps are trained to provide a high level of customer service and respond to questions and issues in a timely manner.

Improved employee morale

When you have your own call center operations, your employees are able to provide a higher level of customer service and customer care. They will feel more connected to the customers and be more committed to providing a good experience for them.

Better control over costs

When you have an in-house call center, you are able to manage your costs and keep them under control. By having the ability to monitor your costs, you’ll be able to find ways to cut down on your expenses without compromising customer service.

More qualified applicants

In-sourcing your call center operation also gives you the chance to hire more qualified applicants. You’ll be able to hire employees who have a lot of experience in customer service and who understand the importance of providing great customer service.

When to consider outsourcing call center operations?

The best time to consider outsourcing call center operations is when you are experiencing a lot of growth and you’re not able to keep up with all of the new leads coming in.

If you are unable to provide a good customer experience to your current customers, you’ll find that your revenue will start to fall. This is why it’s important that you should consider outsourcing call center operations if you’re having trouble keeping up with the demand for your products or services.

It’s recommended that you consider outsourcing call center operations if your current in-house call center operation is failing to provide a good customer experience.

How do you know if outsourcing is right for your business?

The first thing you should know about outsourcing is that it’s not for everyone. There are some tasks that are so specific to your business that a freelancer or an agency won’t be able to do them as well as you can.

If you’re not sure that outsourcing is the best fit for your business, there are a few things you should look out for.

Are you struggling to keep up with the demands of your current call center operations?

If you’re not able to keep up with the demand for your current call center operations, you should consider outsourcing. Outsourcing is the perfect option for those who need more help than they’re currently receiving. By outsourcing your call center operations, you’ll be able to free up some of your time and focus on your other business activities.

Are you having problems finding the right staff for your in-house call center operations?

If you have a limited number of employees and you’re struggling to find the right staff for your in-house call center operations, it may be time to look into outsourcing. By hiring people from overseas, you’ll be able to have access to a much larger pool of applicants. This will give you the chance to find qualified applicants who understand your business needs and your requirements.

Are you experiencing a lot of turnover in your call center operations?

When you have a high turnover rate, it can be difficult to keep your current call center operations running smoothly.

If you’re experiencing a high level of turnover in your call center operations, you should consider outsourcing. Outsourcing your call center operations will give you the opportunity to have better control over your costs and over your staff.


Outsourcing call center operations can be a good option for companies with limited resources or no in-house expertise. But before you decide, ensure that all your bases are covered and understand how to mitigate risk.

We hope this article has answered all of your questions about outsourcing call center operations. If you have any other queries, leave them below and we’ll be happy to help.

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