Customer Support Outsourcing Risks and How to Manage Them

a customer representative working

Exceptional customer service is critical to the success of e-commerce businesses. Since online shoppers cannot physically experience products or directly interact with sales staff, making them feel valued and supported throughout their journey is important.

The best way to do this is through customer support outsourcing. This is the practice of hiring a third-party provider to handle customer interactions on behalf of a business. Some companies find outsourcing helpful as they typically can’t maintain an internal customer service team.

Despite its many benefits, outsourcing comes with its own set of challenges. Let’s discuss common customer support outsourcing risks and how Eastvantage helps clients overcome them.

Risks of Outsourcing Customer Service and Their Solutions

Many companies opt for outsourcing to reduce costs, scale efficiently, and enhance customer experiences. The reality is, no outsourced solution is 100% perfect. Challenges and risks are inevitable. Fortunately, you can better prepare for these customer service outsourcing risks when you know what to expect.

Limited or Loss of Control Over Customer Relationships

The Challenge: One of the biggest concerns for business owners when outsourcing is losing touch with customers. Outsourcing means entrusting customer interactions to an external team, which can lead to reduced oversight in managing relationships and ensuring consistent branding across all channels and interactions. 

The Solution: Working with a provider doesn’t mean that you lose control entirely. You should still be able to provide direction and interfere should the need arise. To mitigate this outsourcing pitfall, businesses should establish clear service level agreements (SLAs), provide detailed customer interaction guidelines, and maintain open communication with the outsourcing partner. You can also request access to real-time data on customer feedback and conduct regular performance reviews to ensure visibility and alignment with business objectives.

Inadequate Knowledge of Your Business

The Challenge: A third-party provider may lack in-depth knowledge about your products, services, and company values. You hire them to accomplish certain tasks, and their focus might be solely on those tasks. This can lead to inconsistent or incorrect information being shared with customers. Your outsourcing partner might also misrepresent your brand and not connect with what makes your customers tick.

The Solution: To prevent this, invest in comprehensive training programs and create an accessible knowledge base, such as a brand bible or a process document. Ongoing refresher training sessions and collaborative meetings between in-house and outsourced teams will help bridge knowledge gaps and ensure customer queries are handled accurately.

a customer representative talking to a client

Time Zone Differences and Language Barriers

The Challenge: Many customer service outsourcing firms are located offshore. While it’s cost-effective to outsource from countries outside your location, misunderstandings are more likely due to time zone differences and language barriers.

The Solution: Here’s an e-commerce business tip that will make all the difference: choose a provider that is culturally affine with your country and proficient in your language. Reduce miscommunication by providing training on cultural nuances and standardized scripts and FAQs to help maintain smooth interactions.

Exposure of Sensitive and Confidential Data

The Challenge: Data security is one of the most challenging risks of outsourcing customer service. In order for customer service representatives to perform their jobs well, they need access to all pertinent information. In many e-commerce businesses, this data can be sensitive in nature, including account balances, credit card numbers, or medical records. Sharing customer data with an external provider increases the likelihood of breaches and unauthorized access.

The Solution: Minimize this risk by partnering with outsourcing firms that adhere to strict data security policies, comply with industry regulations (such as GDPR or PCI-DSS), and have secure IT infrastructure. Implement an airtight outsourcing contract or SLA to hold the provider accountable. You can also conduct regular security audits and restrict access to sensitive information that the provider doesn’t need for their tasks.

Vendor Failure

The Challenge: An unreliable outsourcing partner can cause disruptions in customer service, leading to delays and dissatisfied customers. While it’s expected that both parties need time to adapt to new processes and technologies, outsourcing firms are hired under the assumption that they have tried and tested methods that actually work. If you fear you’re not getting the results you want, it’s time to review the contract.

The Solution: Establish clear contractual agreements with performance benchmarks and penalties for non-compliance. Keep communication channels open to ensure that you and the provider are on the same page and working toward the same results.

a customer representative talking to a client

Overcome These Risks with the Right Outsourcing Partner

Ultimately, customer support outsourcing risks can be avoided by selecting the right outsourcing firm. This requires due diligence on your part. Thoroughly vet potential vendors by assessing their experience, reputation, and client testimonials before hiring a provider.

But with Eastvantage, you don’t need to search further. We help e-commerce businesses navigate outsourcing challenges by leveraging expert teams, cutting-edge technology, and proven customer service best practices. Our customer support outsourcing solutions are designed to improve customer experiences so you can focus on growth.

Contact us to get started.

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