How To Outsource Customer Service In 2023 – A Complete Guide By MWDN
The way we know it today, customer service outsourcing appeared at the beginning of the 2000s, evolving from “telemarketing” departments of the 80s and “call centers” of the 90s. A lot has changed in recent years, starting from the automation of repeated customer support processes and the extended use of AI chatbots.
In this article, MWDN experts have gathered the latest trends and the best tips for outsourcing your customer support services in 2023. We have also pointed out some of the best destinations for helpdesk and other IT services outsourcing, considering the geopolitical situation in the world.
Technologies that will rule the world of client support in the following years
In the 2000s, there were three main reasons why large enterprises started to outsource client support and hire hundreds of customer service employees around the world.
All-around support wasn’t a “bonus” anymore; it became a necessity
At the beginning of the 2000s, more and more businesses were going online, and every e-commerce website or company that provides other online services required a support department. So, customer support wasn’t an extra perk anymore; it became a necessary part that kept the business going.
Clients became more demanding and required a personalized approach
The late 90s and the beginning of the 2000s were the time of massive use of answering machines (which are now considered quite primitive). Clients worldwide hated the new experience of automated communication and required a human approach.
Clients were annoyed with waiting for a free operator; they demanded an immediate response
Clients wanted to acquire professional support services, a personalized approach, and to talk to human beings (fluent in the client’s native language). They also didn’t want to wait more than five minutes to connect to that perfect operator.
All these reasons left no choice for large companies from developed countries. To avoid going bankrupt because of expenses on support, they had to delegate customer services to countries where hourly wages were lower than in their local labor market. However, today this situation has changed yet again.
First, the labor market becomes more global, which diminishes the difference in salaries of people with the same skill sets living in different countries.
Second, the moral values of brands start affecting their incomes more than ever, and the companies that exploit the “cheap labor force” from developing countries might suffer from reputation damage and the resulting customer churn.
There is a solution, though. New technologies can help your business cut costs, provide clients with a better user experience, and gain the reputation of an innovative and high-technology company.
RPA and automatization
Every business with a customer support department gathers stats on their clients’ most frequent questions and queries. This allows them to create a simple algorithmic answering machine that would cover at least half of the calls and, by creating a funnel, will match a client with an extraordinary issue with the best expert in a particular question.
The repeated support department functions can be automated even further; for example, an answering machine can check when the clients need to be informed about something and do it without the intervention of human employees.
AI chatbots
The logical evolution of robotic process automation is artificial intelligence. AI solutions are already used in customer support chatbots. Almost half of the clients who have experienced communicating with an AI chatbot cannot figure out whether they are talking to a human or a machine.
Natural language processing
The next step of using artificial intelligence in customer support is NLP-based technologies. Alexa and Siri-like online helpers might become a base for fully automated call centers of the future that will be able to answer clients’ queries in text messages and by voice on all channels of communication known to society.
How to find a reliable partner for outsourcing customer service?
In the current state of geopolitical instability, financial crisis, and possible “stagflation” that will continue in 2023, choosing a trustworthy contractor for something as strategically important as customer support becomes crucial.
We offer to consider these recommendations so you can get all the benefits from delegating part of your business processes to third parties.
- Find yourself a strategic partner. The partnership means both the vendor and the customer are interested in the success and evolvement of each other. Meanwhile, customer/vendor relations are only about selling the service at the highest price possible and buying it at the lowest cost. Choose companies that offer you partnership relations. If we talk about delegating customer support and other IT services, that would be contractors offering outstaffing and staff augmentation models of cooperation.
- Choose personalized solutions. Companies that specialize in customer support services offer plenty of out-of-the-box solutions. Personalizing those ready-to-use instruments or developing a fully customized tool amended to the specificity of your business is a wiser choice. It might add a new line to your expenses budget, but you should consider these costs as an investment into a more efficient and automatized support service.
- Choose reputable contractors. On the one hand, no-name contractors who have just emerged on the market might have lower service fees. On the other hand, you shouldn’t be that tight with your budget when it comes to choosing a strategic partner. Opt for contractors with a good reputation on the market and years of hands-on experience. Also, do online research about the business entity you’re about to work with – check out their previous customers’ testimonials and ratings on platforms with customers’ feedback.
- Opt for distributed teams. Regarding the geopolitical situation in the world, we can assume that it’s better to divide your assets (especially if your main asset is people) across continents. Think of hiring customer support specialists and a team of developers to help you innovate your support department from different companies in different countries.
- Don’t overinvest in R&D. Research and development is the driving force of innovation. Unfortunately, this is also the riskiest part of the IT business. In November 2022, we saw how the largest tech companies like Amazon, Alphabet, and Meta started to cut their budgets for R&D services and sacked hundreds, if not thousands, of researchers who worked in their R&D departments. 2023 is the year of smart and careful investments, especially in risky and not-yet-feasible innovations.
Best destinations for outsourcing customer support in 2023
The top list of best countries to outsource customer support and IT services changed slightly in 2022. For example, Belarus, which used to be a leader among countries providing high-quality but affordable software development, is not on the list anymore, as well as Russia. Some customers also consider companies based in Ukraine a debatable option for partnership. We’re afraid there might be even more “danger zones” next year.
This list consists of the countries whose citizens continuously demonstrate a high command of English, well-developed technical skills, affordable fees, and high motivation for work.
Eastern Europe: Poland and the Czech Republic
Many Ukrainian software developers who were forced to become refugees and tech talents fleeing mobilization in Russia and Belarus have moved to Eastern European countries this year. Apart from them, the residents of Poland and the Czech Republic themselves also have a great reputation for professional developers and customer service representatives with a bit lower average wages compared to the USA, Canada, and Western Europe.
Asia: India and the Philippines
Long ago were days when people were mocking Indian call centers. Today, India and the Philippines have developed IT sectors that can boost innovation in the world’s largest tech giants. Companies like Google, Facebook, and Amazon have been outsourcing different parts of their businesses, including customer support, to India and the Philippines for years.
South America: Brazil and Mexico
If your business is situated in the US and you prefer nearshoring to offshoring, consider delegating your customer support services to your neighbors – Brazil and Mexico. The percentage of people speaking English in Brazil and Mexico is much higher than in Asian or European countries, they have some tremendous high-reputable software development companies, and they live in almost the same time zone as the United States.
Summing up
Customer support became a part of clients’ user experience. It is also a great marketing instrument that can help your business flourish. 2023 is the year that you should use to tune this tool! If your support department lacks technical sophistication, change it today by implementing RPA solutions and adding AI-based technologies to your customer support algorithms. You can do this easily by hiring a reputable staff augmentation company that would reinforce your in-house tech team with their unique and skilled talents.
