When it comes to running a business, there’s one reality most people can’t escape: you can’t do everything yourself. It doesn’t just mean doing everything yourself in the literal sense; it also means you can’t have your office workforce do everything either.
That’s how the idea of outsourcing was born.
Whether you’re looking to save time, cut costs, or simply make your business operations more efficient, outsourcing can be a game-changer. While businesses outsource several types of operational duties, contact or call center outsourcing is the most common of the lot.
Now, we come to our main question: should you Outsource to a company located offshore or stick with a US-based company? If you’re new to how outsourcing works, these terms might confuse you, but don’t worry. We’ll help you understand the difference between the two, their pros and cons, and decide which one is right for your business.
Table of Contents
Offshore Outsourcing
Offshore outsourcing is a bit like taking your business on a global adventure. It involves hiring outsourced teams from other countries, often in regions where labor costs are lower.
Countries like India, the Philippines, and Mexico have long been the go-to destinations for businesses looking to save on their contact center outsourcing. However, let’s not just skim over the surface; there’s more to it than just saving a few bucks.
Pros of Offshore Outsourcing
One of the biggest perks of offshore outsourcing is cost savings. When it comes to business operations, reducing expenses without sacrificing efficiency is the golden ticket.
Offshore outsourcing firms tend to offer services at a fraction of the cost you’d pay in the US. This is mainly due to the fact that wages in these countries are significantly lower.
Such low labor costs can be appealing for small and large businesses alike as they try to stretch their budgets while still providing reliable customer support.
Another sweet deal with offshore outsourcing has to do with its round-the-clock service. When your outsourced team is located in a different time zone, they can continue providing customer support while your local team is asleep. This is great for businesses looking to provide 24/7 customer service, ensuring your customers can always get help when they need it.
Cons of Offshore Outsourcing
Of course, offshore outsourcing isn’t all smooth sailing. There are a few bumps in the road when it comes to this type of outsourcing.
Communication issues can be a major headache. Language barriers and cultural differences can lead to misunderstandings that may affect the quality of your customer service and impact your brand. Even if most of your offshore workers speak English, accents, idioms, and local customs can cause confusion for both your business and your customers.
While the lower cost is tempting, you might be paying for it in other ways, like poor response times service quality, lower customer satisfaction, and as a result negative impact on your brand loyalty.
Then there’s the issue of control. Having an outsourced team halfway across the globe means you’re not exactly in the driver’s seat. You may find it more challenging to oversee their work, ensure compliance, or make quick adjustments when necessary.
US-Based Outsourcing
US-based outsourcing might not whisk your business away on an international journey, but there’s something to be said for keeping things close to home. With US-based contact center outsourcing, you’re working with outsourced teams that operate within the US, which has its own set of advantages and disadvantages.
Pros of US-Based Outsourcing
First, let’s talk about familiarity. When you outsource to a US-based firm, there are fewer cultural or language hurdles to jump over. This can make a huge difference when it comes to customer satisfaction. That’s because your customers are more likely to feel understood and have smoother interactions with customer support outsourcing teams.
The ability to quickly connect with a representative who “gets” their concerns can make or break the customer experience. Plus, proximity to your time zone means faster communication and better control over daily operations.
Another hidden gem of US-based outsourcing is the level of control you maintain over your business operations. In offshore outsourcing, your outsourced team could be thousands of miles away, so you can’t just drop by and check in on them. US-based firms make it easier to pop in for meetings, conduct quality checks, and ensure everything is running smoothly.
If you value hands-on management or want to quickly respond to any issues that come up, keeping your outsourcing services onshore might be the best fit.
Finally, you can trust a US-based partner to understand and follow all the US regulations and legal compliance. US-based call centers are subject to stringent regulations on data privacy and security, reducing the risks associated with handling sensitive customer information. Managing a call center within the US allows for easier resolution of legal disputes and ensures operations comply with local labor laws.
Cons of US-Based Outsourcing
Now, let’s tackle the elephant in the room: cost. US-based outsourcing is not as cheap as offshore vendors. You’ll pay more for labor, and that requires a larger budget, something that could impact smaller businesses even more since they don’t have deep pockets.
Labor costs are more expensive in the US compared to offshore locations, and these costs are on the rise right now. Higher wages, operating costs, and compliance regulations all contribute to making US-based outsourcing more expensive than its offshore counterpart. However, you might argue that you’re paying for peace of mind and higher service quality, so it could be worth the extra cash.
If you focus on delivering high-quality customer service, the higher costs associated with the US-based outsourcing partner will pay off in the long run. The ability to provide fast, reliable, and personalized service might be the deciding factor in earning customer loyalty, which ultimately drives revenue.
Offshore or US-based? The Million-Dollar Question
Having said all that, let’s help you reach a conclusion: which one should you choose? Offshore or US-based outsourcing? The answer really depends on your business’s specific needs and priorities.
If you’re a business looking to save money and can handle the occasional hiccup and the less-than-perfect quality CS measurements, if you are OK with some communication challenges, offshore outsourcing may be your best fit. It allows you to cut down costs while still keeping your customer support outsourcing up and running.
However, if you understand that client satisfaction and brand loyalty is crucial to your company’s future success. You should follow the direction of companies known for the best customer service experience like:
- Zappos
- American Express
- Nordstrom
- T-Mobile
- L.L. Bean
- Southwest Airlines
- Costco
- JetBlue
These companies prioritize maintaining local customer service operations to ensure better communication, cultural alignment, and a seamless customer experience. Familiarity, proximity, and hands-on management will give your business the edge it needs to thrive in a competitive market.
Why Select Blue Valley Marketing as your US-Based Outsourcing Partner
The truth is people love when they feel understood and taken care of. When your customers can communicate with someone who gets them, it creates a smoother, more satisfying experience.
Plus, if you ever need to address concerns, you can easily reach out to your outsourced team without worrying about time zone differences. This kind of accessibility can be a game-changer in maintaining efficient and effective business operations.
There are plenty of US-based outsourcing companies that offer contact center services. However, none can offer you a high quality of service and attention to detail like Blue Valley Marketing.
Since 1991, Blue Valley Marketing has supported businesses operating in B2B, and B2C industries. With six locations staffed with professional full-time qualified and trained employees in the US (Midwest), we create a partnership with our clients built on trust.
Over the years we have completed over five thousand (5000+) outbound and inbound projects in various industries. We strive to learn, understand, and support each one of our client’s unique needs. We focus on best practice solutions, enhancing brand quality, and securing increased revenue and profits for our clients. Using innovation in technology, operation, and strategies, we become integral to every client’s organization.
Whether you want to cut operational costs, improve service quality, or increase your bottom-line profits, Blue Valley Marketing is the best solution for you. If you are looking for a third-party US-based call center, reach out to us at Blue Valley Marketing today.
Last Updated on September 22, 2024 by Ronen Ben-Dror