Why customer service outsourcing is preferred by many companies

Many large companies that sell products and services outsource customer service abroad, mainly to India, the Philippines or China, to reduce costs.

As overhead costs continue to rise, they are increasingly blamed to shareholders for falling profits. To stay afloat and keep shareholders happy, outsourcing services at a fraction of the cost have become a preferred option.

Not only large companies but also small business owners are moving abroad to procure support operations for US and North American customers. It has led to widespread disenchantment among people as jobs are offloaded overseas. But companies benefit from the outsourcing process as it helps them reduce operational costs.

Outsourced customer service to countries like India, China and the Philippines is cheaper and often available at a fraction of the cost. There is a talent pool in the former colonies such as India and the Philippines where large English speaking populations are available.

They are very familiar with what is happening in the US and Western markets and, with a little practical training, will happily take over the work of their colleagues in the US. But is the quality of customer service suffering as a result? Is there a problem with mainland US customers being served by professionals from other countries?

Initially, it was thought that the customer service staff abroad would not be up to the job since the culture and accent were different. But with the right training, they do the job remarkably well at a very low cost as many US companies benefit from outsourcing. From credit cards, train and flight bookings to systems and their troubleshooting, outsourcing is the only way for US businesses to cut costs.

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Tax breaks for those who don’t ship jobs abroad have been considered, but companies can’t be stopped as they benefit from this cost-cutting measure. Outsourcing customer service has become so popular with US companies that it’s one of the top tips offered in business manuals. These are jobs that many Americans can do, but at a much higher cost.