April 14, 2022

How Outsourcing Customer Service Can Help You Cut Your Overhead Costs

great Customer Service on a computer

With the way the economy goes through ups and down in almost quick succession, It is hard to predict where it is headed. And with recent global developments, businesses need to whittle down costs to stay competitive. 

Many enterprises turn to outsourcing to save resources. Specifically, a lot of businesses choose to outsource customer service. However, some ventures are also apprehensive about the idea of letting someone outside the business essentially take care of the customers. 

This article aims to settle that conundrum. It will feature the many ways outsourcing customer service can reduce costs and how they outweigh their perceived disadvantages. 

Overhead vs. Operating Costs

To better understand the advantages of outsourcing customer service, let us look into the main expenses that businesses face:

Operating Expenses

These are also called direct costs because they cover the business necessities. They are required to operate your business, which includes money spent on production, sales, and marketing. Materials, equipment, packaging, and labor are also included here. 

Overhead Expenses

This list mainly refers to ongoing costs that help businesses function. These costs still exist even when the enterprise does not produce or sell anything in a given time. Rent, accounting, salaries, software, insurance, and utilities are included on this list. 

Fresh Books recommends the following to reduce overhead costs:

  • Save office space
  • Rent equipment
  • Trim your team 

How Outsourcing Customer Service Helps

Outsourcing your customer service can reduce overhead costs by fulfilling all the recommendations mentioned above. 

You will not need to invest in additional office space or equipment when you outsource. Companies spend a lot of money dedicating office resources and specialized equipment for customer service. Representatives will need desks, computers, phones, internet, software, and more to perform their tasks well. 

Outsourcing essentially means deferring these costs to another team. You also save your business from potential maintenance costs. 

But equipment and office space are not the only things customer service teams need to do their job. They also need comprehensive training, not only to learn about your products and services but also to enhance their methods of appeasing and satisfying customers. 

When you outsource customer service, you will get a professional team that understands how best to handle your clients. The service provider will be responsible for training them, which saves on cost. What they learn about your products and services will only complement their already developed customer service skillset. 

Finally, outsourcing customer service will save your company from one of the biggest expenditures for any business – salaries. In 2020, the average annual total compensation for full-time employees in the US reached $87,557. That includes salaries, employer contributions to social insurance, welfare, and others. This staggering figure is what awaits businesses that want to take in more people. 

When you outsource, you can avoid these expenses altogether. A monthly or annual service fee for a well-trained and completely equipped professional customer service team is a far more cost-effective, not to mention efficient, choice.

Consider Outsourcing for Your Organization’s Overhead

Outsourcing customer service can significantly reduce your business’s overhead costs. When you outsource customer service, you save your company from spending on additional office space, equipment, specialized training, and salaries. This will provide your business with the edge it needs to grow and thrive. 

Always Answer is here to help you keep your customers happy. Learn more about our services and their benefits when you give us a call at 1-800-606-9898. You can also visit our contact page and fill out the form there.