Should we outsource our contact centre? Questions to answer before you go to market

Why do organisations outsource?

The usual reasons are sound: lower operating costs, the ability to scale up and down quickly, access to specialist skills, and freeing leaders to focus on the core business.

I've worked on both sides of the table, running outsourced operations and advising the businesses that buy from them. The outsourcing arrangements that work well usually start with clear answers to the questions below.

1. What problem are we actually trying to solve?

"Reduce costs" is a common answer, but rarely the whole story. Is the real problem cost, capacity, capability, or a performance issue nobody has been able to fix internally?

If it's the last one, be careful. Outsourcing a broken process usually means paying someone else to run it.

Start from the organisation's strategy, not the contact centre's budget. The right answer depends on what the business needs the contact centre to deliver over the next few years.

2. Do we know our true baseline?

You can't judge a proposal without knowing your own cost per contact, service levels, quality and customer outcomes today. Many organisations go to market without a reliable baseline, then struggle to tell whether the new arrangement is better.

An independent review before you go to market gives you that baseline, and often finds improvements you can make whether you outsource or not.

3. What's core to our brand?

Some interactions are routine and easy to hand over. Others are complex, emotional or closely tied to your brand, such as complaints, hardship or high-value customers.

Decide early what must stay in-house, what can be outsourced, and what could be shared.

4. Onshore, offshore or hybrid?

Offshore providers can offer real cost advantages and large talent pools, but quality varies widely and they don't suit every brand or customer base.

Onshore partners offer closer cultural alignment and suit complex or high-emotion interactions, at a higher price. Many organisations use a hybrid model, keeping complex work onshore and routine work offshore.

The cheapest option is rarely the best value. Weigh the commercials against your customers, your brand and your long-term plans.

5. What will we keep control of?

Outsourcing the work doesn't outsource the accountability. You'll still need people who manage the relationship, review performance, own the knowledge base and represent the customer.

Under-resourcing this governance role is a common reason outsourcing disappoints.

6. How will we measure the partner?

Service level agreements drive behaviour, so design them carefully. Speed-only measures can push a partner to rush contacts, which shows up later as repeat contact and complaints.

Balance speed with quality, resolution and customer outcomes, and make sure the reporting gives you the data to check them.

7. What does the transition look like?

Six to eight weeks is a typical onboarding timeline, although it depends on the size and complexity of the work. Transition covers recruitment, training, systems access, knowledge transfer and testing, and it's where many problems start.

Plan for a dip in performance during transition, and agree in advance how it will be managed.

8. What's our exit plan?

It feels odd to plan the end before you've started, but it matters. Make sure the contract covers who owns the data and knowledge, how work would move back in-house or to another provider, and what happens to your customers in the meantime.

Already outsourced?

Many of these questions apply just as much to an existing arrangement, especially before a contract renewal or retender. If results have slipped, or the reports don't match what customers are telling you, an independent review will show where the gaps are.

Find out more about the Outsourcing Health Check, or book a free 30-minute call to talk through the decision you're facing.