Outsourcing Customer Service: Key Benefits & Best Practices

by Gibson Amisi Kashi
Updated on : October 13, 2025

As your online store grows, providing exceptional customer service may prove to be a challenge. Outsourcing customer service can be a great solution to manage an increasing number of customer inquiries while maintaining your brand identity.

At times, even small companies are forced to outsource customer service to help them oversee each customer’s experience.

This strategy takes much of the load off your customer service specialists and helps retain smooth and regular customer service operations.

Let’s explore what outsourcing customer service involves, how to choose the best partner, and the potential pros and cons of having another entity handle your customer service.

What is customer service outsourcing?

Customer service outsourcing refers to the contracting out of some or all customer service functions of a business to external service providers.

These responsibilities include:

Managing inquiries from customers
Processing orders
Supplying technical support, etc.

By contracting specialized customer service functions from knowledgeable suppliers, businesses can achieve flexibility, cost-saving, and probably even better results.

Types of customer service outsourcing

There can be several models of customer support outsourcing based on the requirements and objectives of a business.

Onshore outsourcing (domestic outsourcing)

Onshore outsourcing refers to a business process in which a company outsources specific customer service functions to a third-party service provider within its own country.

This type of customer service outsourcing keeps business operations domestic.

While it may be higher in labor cost, hiring locally often results in better quality, greater control, and improved communication.

Offshore outsourcing (international outsourcing)

This type of customer outsourcing involves hiring an external organization to perform customer support functions in a country other than the one where the company is located.

They are hired to reduce costs, access specialized skills, and improve operational efficiency by operating around the clock due to their time zone difference.

Dedicated customer service outsourcing

Some companies are outsourcing customer service providers who are completely committed to providing dedicated customer support to a single organization.

This approach tends to work well for companies that address specific client needs through customized service delivery.

Shared customer service outsourcing

In the case of shared customer service outsourcing, the outsourced customer service agency manages customer support for several clients simultaneously.

This tends to be less expensive because the supplier can divide the expenses among several clients.

When should you outsource customer service?

Outsourcing customer service can be a smart move for businesses aiming to maintain high-quality support while keeping costs in check. But it’s not a one-size-fits-all solution. The right time to outsource depends on your team’s capacity, customer demands, and long-term goals.

Here are key signs it might be time to consider outsourcing:

Your team is overwhelmed: If rising inquiry volumes are leading to long wait times or drops in customer satisfaction, outsourcing can ease the load and restore consistency.
You need to scale fast: Seasonal spikes or rapid growth can strain internal resources. Outsourcing gives you the flexibility to scale support quickly—without the delays and expenses of hiring and training new agents.
Cost reduction is a priority: Maintaining an in-house support team can be expensive. Outsourcing often lowers costs by bundling trained agents, infrastructure, and tools into one service.
You need to provide 24/7 or multilingual support: Global customers expect round-the-clock, multi-language help. Outsourcing makes it possible to meet those expectations without overburdening your team.
Customer expectations are outpacing your capabilities: If your team struggles to provide seamless, omnichannel support, outsourcing to an experienced provider can help you meet modern demands with trained agents and optimized workflows.

How to choose the best customer service outsourcing solution

You need to select the right customer service outsourcing company in order to deliver exceptional support and enhance customer satisfaction.

Consider the following to help you select an excellent outsourcing solution for your customer service:

Cost-effectiveness: Ensure your outsourcing partner delivers value without compromising quality as you examine the pros and cons.
Quality assurance: Regularly monitor and evaluate the outsourced support to ensure consistent customer service delivery and identify areas for improvement
Multilingual customer support: If your company conducts business internationally, consider outsourcing to a customer service provider who offers support in multiple languages.
Technological capabilities: Look for a provider with advanced technological abilities and solutions like AI, automation, and omnichannel support to improve efficiency and customer experience.
Scalability: Ensure that the outsourced customer service provider can handle increased demand during peak times without compromising service quality.
Reviews and customer feedback: According to Center AI, 87% of shoppers said that reviews and evaluations from regular people influence their decisions to buy more. Going through customer reviews and feedback from the outsourcing customer support provider’s former clients helps you assess the company’s reputation and dependability.

Best tips to outsource customer service

A business is built on good customer service. However, having too many customers may weaken your resources, wear out your team, and lower the quality of service you can give.

Consider implementing the best practices outlined below to run smooth customer service outsourcing and ensure your customers receive reliable support.

Clearly outline your goals and expectations

Whenever an organization opts to hire third-party customer care services, it is important to specify in advance what aspects of customer service will be contracted to the service providers.

We suggest that you do the following:

Communicate openly with the outsourcing customer service team.
Ensure the outsourcing company embodies and accurately portrays your values and culture.
Set up performance measures to ensure consistent quality, prevent misunderstanding, and enhance overall customer satisfaction

Provide proper training to the outsourced team

Thorough training and knowledge sharing ensure your outsourced customer support team performs at its best.

Giving the customer support team the necessary knowledge and skills enables them to provide outstanding customer assistance.

Equip customer service outsourcing teams with relevant knowledge base, user manuals, or product demos so as to make them skilled and assertive in projecting the brand.

Prioritize data security

It’s very important to understand the need to protect sensitive customer data when outsourcing customer service.

You do not want to be the victim of the next data breach. Therefore, ensure that the company you partner with is GDPR compliant. This compliance measure can help you protect sensitive customer information from unauthorized access.

Choose a partner with strong security procedures, including encryption, access controls, and frequent security audits.

By prioritizing data protection, companies can reduce risks and build customer trust.

Build a strong partnership

Real business partners not only know how you operate but also care about the future of your business.

They recognize the value of open communication and take part in celebrating your success.

To establish a strong partnership:

Regard the outsourced customer support team as an important and valued part of your organization. Nurture a healthy working relationship with them.
Conduct regular performance reviews and communicate openly to identify areas for improvement and make changes together.
Make sure you and your partner are working toward the same goals by matching your aims.

This strategy increases customer satisfaction while boosting the overall effectiveness of your customer service operations.

Leverage the right technology

Use technology in order to manage outsourced customer service effectively.

Provided an efficient help desk ticketing system and an extensive knowledge base exists, the customer service teams will resolve their customer issues rather quickly.

Integrate these instruments with your CRM and understand your clients with respect to all their interactions in order to perfect your support.

Knowledge management systems and customer support software give outsourced customer service agents the tools they need to handle questions quickly and effectively.

Furthermore, exploring AI and workflow automation options can simplify common operations, eventually improving customer happiness.

In-house customer service vs. customer service outsourcing

At times, outsourcing customer service doesn’t provide you with everything you need. In this case, prompting you to turn to internal teams for your customer service.

Here is an analysis of the reasons why in-house teams are preferred as opposed to outsourcing:

Criteria	In-house customer service	Customer service outsourcing
Quality of support	The in-house customer service team, familiar with the company’s products and culture, offers more thorough customer support.	Outsourced customer service teams need thorough training on products, services, and corporate culture to provide quality support.
Communication	Their interaction with the clients allows the support agents to address and resolve any issues that may arise on the spot.	It may sometimes be difficult to keep in touch, especially if people are from different regions with different time zones or if information is delayed.
Availability	All customer service departments work in close conjunction with other employees and supervisors for a unified approach.	Extra communication layers and limited collaboration due to geography and time differences can slow response speed and issue resolution.
Control	Support agents can oversee and manage all supporting operations simultaneously, ensuring quick issue resolution.	Third-party services may stretch the timelines for addressing concerns due to limited authority over the business’s day-to-day activities.

Benefits of customer support outsourcing

Depending on your unique needs, outsourcing customer support to a capable outside supplier for your in-house team has several benefits.

Let’s look at the benefits of outsourcing customer service that can improve your customer service strategy:

Decreases overall spending

Outsourcing might be far less expensive than recruiting and overseeing an in-house customer support team.

According to research by LiveHelpNow, 70% of businesses outsource to cut expenses.

The outsourcing providers offer highly skilled labor at a fraction of the cost of hiring locally.

They also take the responsibility of recruiting, hiring, and training staff, therefore saving businesses the costs associated with these processes.

Fewer tasks to handle

Outsourced customer service teams handle regular consumer complaints and inquiries, freeing internal staff from these repetitive duties.

Outsourcing customer support typically specializes in customer service. It has access to advanced technology such as customer service software and more.

This allows them to manage a high volume of customer interactions efficiently.

Businesses can streamline their customer support processes through these specialized resources and improve overall customer satisfaction.

Adaptability

An outsourced customer service provider can quickly increase its support to address customer’s changing needs during periods of high demand, such as when new products are released or during busy times.

On the other hand, they can reduce the number of your outsourced workforce during slower times.

The flexibility implies that your clients will always get timely and efficient support without the hassle of acquiring, training, and managing an internal team to manage those differences.

Wider reach

Outsourcing customer support often operates in multiple time zones, allowing businesses to offer 24/7 customer service.

Being available round-the-clock ensures clients get help anywhere, anytime, regardless of their time zones.

Outsourced customer support has strong backup plans in place, ensuring that customer support operations can continue even during emergencies, and that support is not disrupted by unexpected events.

This continuity provides timely and effective support that meets the needs of the global and local customer base.

Disadvantages of outsourcing customer service

Outsourcing your business processes can stimulate your business growth. However, there are several levels of risks involved in accepting one outsourcer instead of another.

Let’s explore a few disadvantages that you should be aware of:

Brand inconsistency: Agents that are outsourced may have less of an emotional connection with the customers and product understanding than in-house agents, and this may affect the customer experience.
Loss of control: Customer service outsourcing can dilute the company’s consistency, leading to differences in service quality that may not meet the company’s requirements.
Cultural differences: The offshore support staff may not have an idea about each customer and their individual cultures, which results in different customer interactions and leads to some sort of miscommunication between the two groups.
Security risks: Sharing sensitive customer information is involved when a company decides to outsource customer service, leading to data breaches that expose customers’ private information.

5 Best customer support outsourcing companies

Your customer care and operational effectiveness can be greatly improved by selecting the best customer support outsourcing provider.

Consider choosing a customer service outsourcing company that provides flexible customer support solutions, including round-the-clock assistance and on-demand customer service.

The following list includes five well-known outsourced customer service providers:

Company	Service offered	Best in
Teleperformance	Customer care Technical assistance Digital assistance Analytics and insights Financial services Healthcare support	Broad global presence Multilingual support Advanced technology solutions
TTEC	Omnichannel solution Customer care Sales and commerce Back-office support Consulting and strategy Healthcare services	AI and machine learning Strong digital transformation capabilities
Alorica	Financial services Work-at-home solutions Analytic and insights Digital solutions Sales and marketing Customer care	Diverse workforce Strong focus on customer satisfaction
Concentrix	Customer experience management Analytics and insights Digital and technology solutions Sales and marketing Consulting and transformation services Healthcare services	Strong focus on innovation and customer experience transformation Robust analytics capabilities
Foundever	Customer experience management Analytics and insights Digital transformation Sales and marketing Consulting and transformation services Healthcare services	Integration of digital solutions and the human touch

Boost efficiency through customer service outsourcing

While it is true that outsourcing customer service can bring some advantages, it is possible to build an internal team and make them work, provided the right tools are provided.

All businesses are faced with the necessity of making management decisions based on the specific objectives and capabilities of the firm, as well as the expectations of customers.

Do you want to boost your customer service levels? Begin creating your in-house team right away with our help desk software solution; BoldDesk. Start your free trial today or request a live demo to see how our robust software can transform your support activities for your clients. Do you have more queries? Get in touch with us as soon as possible to find out more information. Our support team is always ready to help!

I hope this blog was helpful. Feel free to share your thoughts and experiences with us in the comment section below.

FAQs

Here are some commonly asked questions on customer service outsourcing.

What is customer service outsourcing?

Customer service outsourcing is the process of assigning part or all of a company’s customer support operations to a third-party provider. It enables companies to concentrate on their core skills while ensuring clients get the help they need.

How can I guarantee the privacy and security of my data?

Before hiring an outsourced customer service provider:

Make sure you investigate possible partners thoroughly.
Clearly state in the contract how customer data management should be done.
Demand data protection certifications and strong security measures.

How much does outsourcing customer service usually cost?

Outsourcing customer service may vary according to a variety of factors including location, nature of the services, price structure, experience of the agents, or technology. Usually, you should allocate a budget of between $1 to $50 per hour for every agent.

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Frequently Asked Questions

What are the risks of outsourcing customer service?

Outsourcing customer service can mean less control, inconsistent branding, cultural gaps, and security risks. External teams may not fully understand your business, which can impact customer experience.

How can I ensure the quality of outsourced customer service?

To maintain high service standards:
• Select a reputable provider: Research and choose outsourcing partners with a proven track record.
• Set clear expectations: Define service level agreements (SLAs) and performance metrics.
• Monitor performance regularly and provide feedback: Conduct periodic reviews and provide constructive feedback to the outsourced team.

Is outsourcing customer service suitable for all businesses?

Not always. Outsourcing is beneficial for many businesses, especially those experiencing rapid growth, seeking cost reductions, or aiming to provide 24/7 support.

However, businesses that prioritize complete control over customer interactions or have highly specialized service needs might prefer in-house teams. It’s essential to assess your company’s specific requirements and resources before deciding

ABOUT THE AUTHOR

Gibson Amisi Kashi

Gibson specializes in customer service and customer experience topics at Syncfusion, where he examines trends, tools, and strategies that help teams deliver faster, more connected support.

Connect with the author on LinkedIn.