April 20, 2024


Profitable business

Why Customer Service Outsourcing is Preferred by Many Companies

2 min read

Many large companies selling products and services are outsourcing customer service overseas, mainly to India, the Philippines or China to reduce costs.

As overheads costs continue to rise, they are becoming more and more accountable to shareholders for drops in profit. To stay afloat and keep shareholders happy, outsourcing services have become a preferred option at a fraction of the cost.

Not only large companies, but even small business owners also move overseas to source support operations for US and North American customers. It has lead to widespread disenchantment among the people as jobs are going overseas. But businesses are profiting from the outsourcing operation as it helps them reduce costs of their operation.

Customer service outsourced to countries like India, China and the Philippines is cheaper, often available at a fraction of the cost. There is a talent pool in the former colonies like India and the Philippines where a large English speaking population is available.

They are quite conversant with the goings on in the US and the Western markets and with some hands-on training, are gallantly taking up the job of their counterparts in the US. But is the quality of customer service suffering in the process? Is there a problem with mainland US customers when they are serviced by professional from other countries?

Initially, it was thought that overseas customer service personnel won’t be up to it as the culture and accent was different. But with proper training, they are doing the job remarkable well at a very low cost as many US companies are profiting from outsourcing. From credit cards, railway and airline bookings to systems and their troubleshooting, outsourcing is the only way for US companies to reduce costs.

Tax breaks for those who don’t ship jobs overseas has been mulled but there is no stopping businesses as they are profiting from this cost cutting exercise. Customer service outsourcing has become so popular with US companies that it is one of the most outstanding tips offered by business manuals. These are jobs that many Americans can also do, but at a far higher cost.

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